Hello, why does stimulus check took away my federal refund about 3k ? alot of my friend didn't get deducted, some say its advanced pay some say its free due to covid.

[wildspace]

my friends didn't even get the same question about the stimulus check thru TurboTax why am i getting deducted?

[ThomasM125]

The way the stimulus checks work is you are due $1,200 for yourself and spouse and $500 for each child under the age of 17 listed as a dependent on your tax return for the first stimulus check, and $600 for everyone for the second one. So, if you are just filing yourself, you can get a total of $1,800, and more if you are married/and or have kids.

When you prepare your tax return using TurboTax, you are credited with the stimulus payments you may be entitled to and then you are asked to enter how much money you actually received. If you already received all of the payments due you, your refund will then be reduced by that amount. So, if you received all of the payments due you before you filed your tax return, you will not be due any additional stimulus payments when you file your tax return.

[VolvoGirl]

Your 2020 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  So you don't get it again.

[wildspace]

why is it taxable? so the stimulus check is an advanced payment from tax refund..?
if there is third stimulus check will get i get taxed again for 2021?

[VolvoGirl]

No.  It is NOT taxable and not actually an Advance.  It is calculated on your 2020 income.  So if you qualify for more it is Added to your refund or reduces a tax due.  You have to enter what you already got to see if you qualify for more.    You have to tell Turbo Tax what you already got or it will give it to you again which would be wrong and you would  be getting it twice.