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MacTigger
Level 3

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

TT increases my federal taxes owed when I put in the 1200 stimulus check.

 

Why is that?

 

I thought the stimulus checks were not taxable.

Thanks.

18 Replies
xmasbaby0
Level 15

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

Where did you enter it?   The stimulus check is not taxable nor can it increase your tax due.   Did you enter it in the wrong place?

 

The stimulus check is an advance on a credit you can receive on your 2020 tax return.  If something went wrong or you did not get the stimulus check in 2020, you can get it when you file your 2020 return in early 2021

The Recovery Rebate Credit will be found in the FEDERAL REVIEW section. ( you should see "Let's make sure you got the right stimulus amount”)  If you are eligible it will end up on line 30 of your 2020 Form 1040.

 

Make sure that you enter ALL of the stimulus money received for the 1st ad 2nd stimulus for yourself, your spouse and your children.

 

https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-j-reconciling-on-your-...

 

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
MacTigger
Level 3

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

Yes, this is in the Federal review area.

 

Before I put in the $1200, my fed taxes owed are $1213.

After I put in the $1200, and click Continue, my fed taxes owed are $1851.

 

Then it says:

GREAT NEWS. You qualify for the stimulus credit.  ($38)

 

My taxable income is 73k.

 

What is wrong here?

Thanks.

MacTigger
Level 3

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

Edit:

(the amount that I got was $575 - I finally found it)

 

Before I put in the $575, my fed taxes owed are $1213.

After I put in the $575, and click Continue, my fed taxes owed are $1788.

 

Then it says:

GREAT NEWS. You qualify for the stimulus credit.  ($101)

 

My taxable income is 73k.

 

What is wrong here?

Thanks.

MacTigger
Level 3

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

Does anyone know what is wrong here?

DoninGA
Level 15

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?


@MacTigger wrote:

Does anyone know what is wrong here?


There is nothing wrong.

The program enters your stimulus tax credit amount assuming you have not received any stimulus payments.  The amount is based on the information on your 2020 tax return.

When you enter the actual stimulus payments received this reduces the amount of tax credits on your tax return.

 

The credits either increase your federal tax refund or reduce the federal taxes owed.  

Look at your tax return, Form 1040 Line 30 for the tax credits.

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

MacTigger
Level 3

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

There is no Tax Tools on the left side of the screen.

I am using the desktop client, not online.

 

DoninGA
Level 15

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?


@MacTigger wrote:

There is no Tax Tools on the left side of the screen.

I am using the desktop client, not online.

 


Click on Forms.  When in Forms mode click on the Form 1040 on the left side of the screen to open the form.

MacTigger
Level 3

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

I see.

Thanks very much.

tsedbeck
Returning Member

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

this doesnt make sense. why would tt assume anything regarding the stimulus checks.

my taxes owed went up substantially when i was asked to enter stimulus info. i had gotten all the checks.

can you please explain how this works. if im given a credit then the credit is taken away and the non taxable stimulus is added, nothing should change, its a wash. however, its like im being hit twice and taxed on the stimulus.

please explain, thanks.

xmasbaby0
Level 15

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

You might have become confused by the flow of information in the software.   That "refund monitor" on your screen displays a "refund" amount that includes the stimulus money. as part of your 2020 refund.   But later when you enter the amount of stimulus you really received already, it removes the stimulus already given to you.   And it looks to you like you "lost" your refund,   But ---you do not get the same stimulus money twice--that is why it came out.

 

 

 

Look on line 30 of your Form 1040 for your recovery rebate amount.

https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing

Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
ltalbo50
New Member

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

Just an FYI- one of the problems I encountered with 'Line 30', is that after filing my taxes in late February, Turbo Tax updated their software- which greatly affected my taxes. Instead of a refund, I now owed the Feds! 

TT did something after February & changed the software. I called the IRS and this was happening to 99% of the people who were experiencing the same thing with incorrect information getting entered on Line 30.

Not happy.

Himher
New Member

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

In all the years I have used TurboTax, the owe/refund box at the top always kept a running tally no matter how small the change in income or deductions.  Now you are telling us the TurboTax software assumes you didn't get a $1,400 stimulus check - even though practically everyone did - and tacks it on your return at the last second.

 

On top of that, the government advertised that the stimulus wouldn't have any affect on our taxes.  So is there any wonder that TurboTax customers are confused?  We would be better off if we said we didn't get a tax credit and declared the $1,400 as income.

 

 

Critter-3
Level 15

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

The Recovery Rebate Credit makes it possible for any eligible individual who did not receive an Economic Impact Payment (stimulus payment) to claim the missing amount on the following tax return.

                     

When you prepare your return, TurboTax assumes that you haven't received stimulus payment, so it begins giving you the maximum amount.

When you enter the actual amount received, it adjusts your refund to account for that.

 

If you enter the wrong amount received, the IRS will adjust the amount of your refund/tax due based on what they have in their records. 

confusedAZ
New Member

TT increases my federal taxes owed when I put in the 1200 stimulus check - Why?

This is still not understandable.  Doing 2021 taxes; I had an amount owed to Federal before going to Economic Impact Page on TurboTax of  $3023; I confirmed the amount of Economic Impact payment  received by answering Yes that it agrees with my US Treasury Letter 6475 of $1400 on TTs page.  After clicking on Yes and preceding MY FEDERAL INCOME TAXES INCREASED BY EXACTLY of my Economic Impact Payment of $1400!!  After going round and round with TT help desk; their explanation is that TT automatically assumes you received the maximum of $1400 Economic Impact Payment and that is reflected in the Federal Income Taxes owed running total at top of screen (then WHY would it increase you are merely concurring with the amount on their page and why would your FEDERAL TAXES will increase exactly by the same amount of your Economic Impact Payment for 2021!!!!.  THIS DOES NOT MAKE ANY SENSE.  If the Economic Impact Payment does not  impact Federal Taxes owed according to IRS, then why does TT software increase the Federal Taxes owed after you concur that you received it!!!!!!!

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