When I enter the amount of the stimulus check for 2021, it increases the amount I owe for my taxes. From what Ive read, its not supposed to increase what you owe because that didn't need to be paid back. Why did it increase? If I take that amount out, what I owe goes down.
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The program starts off by giving your the Recovery Rebate Credit on the Form 1040 Line 30. After you have entered the 3rd stimulus payments that you received, the program removes the credit. You cannot receive the same credit twice.
But I feel like I am having to pay it back because it increased what I owe for Federal taxes.
@jomama0808 wrote:
But I feel like I am having to pay it back because it increased what I owe for Federal taxes.
If the stimulus payment received or credited was not part of a tax return you would still owe federal taxes. You are not paying it back you are just not receiving it twice.
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