Got first stimulus check but was not entitled nor received second. Enter zero for second and get a credit which is incorrect. How do you correct turbotax error?

If you enter the amount of stimulus check 1 and enter $0 into stimulus check 2 in the TurboTax software, it should be offset by the calculation in TurboTax.  If TurboTax is calculating a credit, then the information that has been entered into the tax software needs to be updated.

 

Why do you not qualify for the second stimulus check?  The reason that you do not qualify needs to be reflected in the TurboTax software.

 

The TurboTax software adds together the entries that you made for receiving stimulus check 1 and stimulus check 2.

 

Then the software computes the amount of your stimulus check amounts based upon the information that has been entered into the tax software. 

 

If you are due an additional amount, it will be issued as a Rebate Recovery Credit (RRC) on line 30 of the 2020 1040 tax return.

 

If you believe that the Rebate Recovery Credit (RRC) on line 30 of the 2020 1040 tax return is not correct, then you should: 

• Check the amounts entered for stimulus check 1 and stimulus check 2, and
• Make sure that you have correctly entered your dependent information.

If there is a difference, it is in one or both of these situations. 

 

In TurboTax Online, you are prompted to input stimulus check 1 and stimulus check 2 information under Review down the left hand side of the screen.

 

You can also access your stimulus check choices by following these steps: 

• Down the left side of the screen, click on Federal.
• Across the top of the screen, click on Other Tax Situations.
• At the screen Let’s keep going to wrap up.  Click on Let’s keep going.
• At the screen Let’s make sure you got the right stimulus amount, click Continue.
• At the screen Did you get a stimulus payment? you can update your stimulus check entries.  

See also this TurboTax Help.

Chiming in that JamesG1's advice worked for me.

 

I personally would find it more beneficial if TurboTax actually did the calculation on the front end and provided the correct amounts.  Instead, TurboTax says we were eligible to receive both stimulus payments in full when this is simply not true.  After entering in the amounts I actually received, the software really does NOT say anything else and just proceeds on.

Going to the Print Center and manually checking the 1040 form on line 30 shows nothing in box 30.  Meaning, that it is correct for my situation as I should not receive anything additional back.

Personally, I wish TurboTax would make this more clear because these are not really "new" IRS rules.  To be fair, the IRS's "Get My Payment" page should be more clear too since it does not tell you the amounts you are or are not qualified to receive for each of the stimulus payments.

Thank you for your advice.  I agree that Turbo Tax should make this more clear.  Verner