Economic third stimulus

[Bernie1181]

 Why does the application consider the third stimulus payment as an additional tax when I qualify for the full $2800? (did receive the $2800.00

[AliciaP1]

TurboTax does not automatically populate the amount you received for the 3rd stimulus payment - as you noticed when you needed to input the amount.  Instead, it assumes your payment amount is $0 (since the box is empty until you populate it) and estimates the full amount included in your refund.  When you complete the box with the amount you already received, it is merely removing that amount from your refund to properly reflect that you already received.  It is not calculating it as taxable.

[Bernie1181]

I don't believe your response is accurate. In two returns that I recorded in Turbo Tax, the application recorded the amount received as the Third Stimulus payment as an additional tax as shown on line # 23, Other Taxes of Form 1040. I believe line B1 (B2 for joint return) of the "Smart Worksheet for :Schedule 8812: Additional Child Tax Credit were populated with the amount of the Third Stimulus payment received resulting in the additional tax.

[xmasbaby0]

@Bernie1181 Did you confuse the $2800 stimulus payment that was shown on your letter 6475 with the advance child tax credit payments shown on letter 6419?   There is no reason that the $2800 3rd EIP payment should have been put on form 8812 for the child tax credit.   You may have entered the EIP payment in the wrong place.   You need to enter that in Federal Review for the recovery rebate credit.   If you received all of the 3rd EIP that you are eligible to get then line 30 of your Form 1040 should be blank.

You only need to enter the advance child tax credit payments you received from July to December on 8812.   Then the remaining half of the child tax credit you can receive will show up on line 28.

[DoninGA]

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@Bernie1181 wrote:

I don't believe your response is accurate. In two returns that I recorded in Turbo Tax, the application recorded the amount received as the Third Stimulus payment as an additional tax as shown on line # 23, Other Taxes of Form 1040. I believe line B1 (B2 for joint return) of the "Smart Worksheet for :Schedule 8812: Additional Child Tax Credit were populated with the amount of the Third Stimulus payment received resulting in the additional tax.

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The 3rd stimulus payment would only be entered on your tax return if you indicated that you did not receive the stimulus payment.  Then the Recovery Rebate Credit would be entered on your federal tax return Form 1040 on Line 30.  The Recovery Rebate Credit has nothing to do with the Child Tax Credit.

Line 23 on the Form 1040 is only populated by the amounts entered on Schedule 2 Line 21.  Schedule 2 Line 21 includes taxes only from the line items in Part II of the Schedule 2 as shown on this screenshot -

 The Child Tax Credit for tax year 2021 is only entered as a refundable tax credit on Line 28 of the Form 1040.  It is not entered as a non-refundable tax credit.

The only non-refundable tax credit related to a dependent would be the Other Dependent credit of $500 for a dependent that was age 18 or older in 2021.

[Bernie1181]

Again, I am only stating how the application responded when I entered the amount of the third stimulus payment. 

I believe it would behoove Turbo Tax "testers" to research my scenario.