Got 3rd stimulus payment to us for a total of $4200. Says the 3rd stimulus wont affect taxes and you dont have to pay it back. TT increased my taxes owed $4200? why?

[jp27300]

TT states you dont have to pay back 3rd stimulus, yet it increases my taxes owed by $4200, which is the amount we received.

[DaveF1006]

It depends on how you answered the question in your Turbo Tax program. I have included a screenshot below. When you answered the questions, did you mark yes that you received the full stimulus amount?  

To get there, select the federal review tab at the top of your program. Here is a screenshot. You are correct in stating you do not need to repay the stimulus.

[jp27300]

Sry that wasn't clear.  Yes we received the $4200.  The tax owed then shot up by $4200.  Perhaps what may have happened, was that prior to answering that question, Turbo tax "assumed" the amount I received was zero?  And thus added another $4200 to my tax credit?

But  is the 3rd stimulus an advanced payment of a tax credit, rather than a straight payment tax free?

[MarilynG1]

No, TurboTax is not 'assuming' any amount.   Based on your return, it calculates the amount you are eligible for, then asks you to confirm that this is the amount you received.

If you say NO, this is not the amount we received, then you are asked to enter the amount you actually did receive (as @DaveF1006's screenshot showed).

If you're using TurboTax Online, try closing the program, clear your Cache and Cookies and re-open TurboTax.  Sometimes data can 'hang' in the program.

Click on Deductions & Credits, scroll all the way to the bottom of the topics list, and Continue.

You should get a screen titled 'Let's Double Check the Amount You Received' (screenshot).

[jp27300]

Thanks.  I understand that part.

Perhaps I'm not being clear.  Prior, to answering that question $4200 "does this match the amount on letter 6475?"  The owed tax was X.

After answering, yes I received $4200.  The owed tax went up to, X+$4200.

My questions is why did it go up by exactly the amount of the 3rd stimulus we received.  

From what I've read and what Turbo Tax says, the amount of $4200 is not taxable, nor does it have to be paid back.

Is the 3rd stimulus an advance tax credit?

[AmyC]

Yes. The refund meter assumes that you did not get the stimulus until you answer the question. If you had not received the stimulus, it would be a credit on your return. Since you did get the stimulus, it will not appear on your return at all.

[vivek_vaidya]

We received 6475 letter from IRS. But while using TurboTax Premier Online, I do not even see an option to enter 6475 information. Am I missing something?

[DoninGA]

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@vivek_vaidya wrote:

We received 6475 letter from IRS. But while using TurboTax Premier Online, I do not even see an option to enter 6475 information. Am I missing something?

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If you are being claimed as a dependent or your Adjusted Gross Income is above the maximum to be eligible for the Recovery Rebate Credit, the stimulus question will not be asked.

Enter stimulus or recovery rebate credit in the Search box located in the upper right of the program screen.  Click on Jump to stimulus or Jump to recovery rebate credit.

[vivek_vaidya]

Tried entering in the search box, but it bring me to "Let's check your federal return and make sure it's good to go" and does not give an option to enter 6475 info.

[ChondelLO]

@vivek_vaidya  Please visit the Help Article below for steps on how to claim the Recovery Rebate in TurboTax.

How do I claim the Recovery Rebate Credit in TurboTax?