We did receive a response. You do claim all stimulus checks received, both in 2020 and 2021. Answer came back very quickly. Much appreciated! Turbo tax is the only tax program we will ever use!
The Stimulus payments are not taxed. There is most like something else that triggered the change.
No, your stimulus payment isn’t taxable. It won’t reduce your refund or increase what you owe when you file your taxes this year. It’s also not considered income, so it won’t affect your eligibility for any federal government assistance or benefits.
Stimulus payments are based on information from your 2019 or 2018 tax filings. But, the amount you were paid will be reconciled on this year’s tax return based on your 2020 situation.
If you didn't receive the correct amount of stimulus payment, you can claim the Recovery Rebate Credit when you file your 2020 taxes and it will provide the same amount of payment as the stimulus would have. TurboTax will guide you through this to make sure you get every dollar you deserve.
Learn more about stimulus payments at the IRS Economic Impact Payment Information Center site.
You are not paying tax on them. But Turbo Tax started out by assuming you didn't get it and giving you credit for the whole amount so your refund was too high to begin with. Then when you entered what you already got the starting refund was reduced or the tax due increased. Otherwise you would be getting the Stimulus amount on your tax return.
Look at your return. The Stimulus payments do not show up anywhere as taxable income so you are not being taxed on it.