Is the second stimulus check tax free?

cuatemexa1 · ‎May 17, 2021

The IRS deducted $2,400 because I didn't report it on my 2020 taxes

LJane29 · ‎May 17, 2021

It sounds like you didn't report that you had received the money so on your 2020 tax return the credit was issued. Since you had already received it then the IRS corrected the return to reflect that you had already received the second payment in full and no additional payment was due to you.

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DawnC · ‎May 17, 2021

If you received the $2400 in 2020, the deduction is valid. If you did not receive the stimulus payments, you will need to contact the IRS to find out more. But as stated above, it does sound as if you claimed the recovery rebate on Line 30 of Form 1040 - even though you had already received the payments earlier in 2020. Double check your Form 1040 to verify this is the case.

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cuatemexa1 · ‎May 18, 2021

I did received the second stimulus check, but not on 2020. I was on January 4, 2021. The software of TurboTax deluxe told me I don't have to reported, and since it happened on 2021, I thought that didn't apply on the 2020 tax returns. I work very little just for 3 months and I've been unemployed ever since. Remember on March the American Rescue Plan was passed. But I did my taxes in February. I am still waiting for those first $10,200 to be tax free. I haven't heard anything related to that since the law passed. Have you?

VolvoGirl · ‎May 18, 2021

You were suppose to include the second one.

Yes a payment you got in January or February 2021 is an advance and based on your 2020 return. Enter the second Stimulus payment on your 2020 return now. The year you got it doesn't matter. If you don't report it Turbo Tax will give it to you again, which would be wrong and double. The Stimulus entry screen even says the second one is between Dec 2020 and Feb 2021 so you should include any payments you received in January and February.

See the screen shot on this one
https://ttlc.intuit.com/community/after-you-file/discussion/re-can-the-irs-deposit-less-federal-retu...

VolvoGirl · ‎May 18, 2021

For Unemployment

If you have filed, the IRS will recalculate your return for the new unemployment exemption for you. There is no need for taxpayers to file an amended return unless the calculations make the taxpayer newly eligible for additional federal credits and deductions not already included on the original tax return.

See this new IRS May 14, 2021
https://www.irs.gov/newsroom/irs-begins-correcting-tax-returns-for-unemployment-compensation-income-...