How come i have to pay state taxes on stimulus money

[ThomasM125]

The stimulus payments are not taxable on your federal return and I don't know of any states that are taxing it, so what state do you live in so we can research further?

[SteamTrain]

Oregon does have an issue with it...they (OR) claims a handwaving "not-taxed"  but it is a somewhat warped view and entering the Fed stimulus does affect the OR taxes owed for some tax payers.

[terese elkins]

Either California or Turbotax taxed my stimulus.  Plain as day. The tax refund ticker reduced drastically when I answered that I received both stimulus checks.  I've been  letting people know.

[CatinaT1]

Before you enter the amount of the stimulus payments at the screen Did you get a stimulus payment?, you have been given the full Rebate Recovery Credit (the equivalent of the two stimulus payments) as part of your refund.   This can be found on line 30 of the 2020 Federal tax return.  At this point, this is an 'incomplete' Rebate Recovery Credit. 

The refund monitor on your screen displays a refund amount that includes the stimulus money as part of your 2020 refund.   When you enter the amount of stimulus you received, the refund monitor adjusts to account for this. 

  

See this TurboTax Help. 

  

This TurboTax Help states that the Economic Impact Payments (both the first and second) are not considered income, and therefore are not taxable.