If my daughter received a stimulas check in April of 2020, then another one in January 2021, does she need to claim the one she received in January?

[karen-gleich]

If she does claim the January one why does she have to pay in to the IRS?  Before we added the 2nd check she was getting money back, just does not seem right.

[LenaH]

Yes. Your daughter must enter both the first-round and second-round payments (even if received in January 2021) in the recovery rebate form. Before you entered her second stimulus payment, TurboTax was most likely giving your daughter the Recovery Rebate Credit. 

Generally, if taxpayers did not get a first or second round stimulus payment, and now they qualify due to a change in circumstance, then they would get a Recovery Rebate Credit. The Recovery Rebate Credit is calculated into your overall tax refund and will either increase a refund or decrease the amount of tax owed. 

Once you entered her second stimulus payment, the credit got eliminated because she already got both payments that she was qualified for. This decreased or eliminated her refund. 

 Stimulus payments were not considered income and are not taxable. 

[FEM1]

I have a similar issue.  I did not add in the second stimulus check but I did receive in 2021.  I want to know how to correct my tax1040SR after it was already accepted by IRS and I already paid what Turbo Tax told me to pay.  If the stimulus in not income why am I having to pay more money?

[ThomasM125]

@FEM1 If you did not report your stimulus payments properly in TurboTax, the IRS will probably adjust your tax return accordingly.

When you enter your stimulus payments in TurboTax, they are not treated as taxable income. You enter the payments to see if you are due additional money that will be refunded to you. If you are having to pay more money, it is because your tax return was adjusted by the IRS, they will send you a letter explaining why they made an adjustment.