I have a Federal Credit of $2,800.00. How is that calculated?

[rjs]

There are a lot of different kinds of federal tax credits. What specific credit are you referring to? Where exactly do you see the $2,800?

The amount $2,800 looks like it might be a Recovery Rebate Credit on line 30 of your 2021 Form 1040. If so, it's $1,400 per person for you and one other person on your tax return, either your spouse or a dependent. TurboTax might be giving you that credit because you have not entered the stimulus payment that you received. The stimulus payment was an advance payment of the credit on your tax return. If the IRS did send you a stimulus payment, you are not entitled to get it again as a credit. You must enter the payment that you received. To enter it, type the word "stimulus" (without the quotes) in the Search box, then click the link that says "Jump to stimulus."

[ErnieS0]

It sounds like you received two "plus-up" or third stimulus payments of $1.400 each.

If the IRS did not send you a payment last year — and you qualify for the third stimulus — the money will be added to your return as a Recovery Rebate Credit.

Examples of a $2,800 payment are a couple who did not get any payments last year or someone who added two dependents that weren't claimed on the 2020 return.

The Recovery Rebate Credit will appear on line 30 of Form 1040.

To preview your return in TurboTax Online:

• Click Tax Tools in the left column
• Click Tools below that
• In the center column, select View Tax Summary
• In the left column click Preview my 1040
• You will see Federal 1040
• When you are done, click Back in the left column

For more info see Third Economic Impact Payment.

[rnraymond]

To all who replied to my question,

Thank you very much for taking time to consider my question.

The issue has been resolved.  Your collective insights and suggestions are spot on to that resolution.  I had not entered the $1,200 I received in January, 2021.

Thank you all.

RN Raymond

[Critter-3]

ONLY the third stimulus payment of  $1400 per person  (sent out in March/April/May of 2021)  is  reconciled  on the 2021 return.   

The first 2 stimulus payments of $1200 & $600 pp were already reconciled on the 2020 return.  Do NOT enter them on the 2021 return.