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Level 2
posted Nov 18, 2023 1:18:26 PM

No income. Why return third stimulus payment?

I am amending 2021 1040 with TurboTax desktop.  I originally received the third stimulus of $1,400. 

 

In both original filing and amended, I had zero income from all sources.  My original AGI was 0 and my amended AGI is negative $23,000.  I'm even carrying a capital loss, and had no capital gains whatsoever. 

 

With amendment, TurboTax concludes that I must return the $1,400 stimulus!

 

Why? What am I doing wrong?

0 8 4761
8 Replies
Level 15
Nov 18, 2023 1:21:13 PM

Why are you amending the 2021 tax return if you had no income from any source in 2021?  The EIP3 does not have to be returned if you were not a dependent on someone else's tax return in 2021.

Level 2
Nov 18, 2023 1:25:51 PM

I have a startup business in an SMLLC that I intend to close.  It has accumulated NOLs, and has never made revenue.  I need to file amendments to stay current in order to close the LLC.

Level 15
Nov 18, 2023 1:36:36 PM

You should not be completing the Recovery Rebate Credit section of the amended return since you have already received EIP3.

Level 2
Nov 18, 2023 1:41:25 PM

Thank you @DoninGA and agreed!  I've been trying to override the section below in TurboTax Home & Business 2021. Is this possible, or is there a better solution?

 

Level 15
Nov 18, 2023 1:45:13 PM

I'll page one of our members who may be able to assist @Anonymous_ 

Level 15
Nov 18, 2023 1:56:21 PM

Really not anywhere up to speed on the recovery rebates and the like, so I'll page @Mike9241

Level 15
Nov 18, 2023 2:05:44 PM

What did you have on the original 1040 return line 30 for the Recovery Rebate Credit?   It should have been 0 or blank.   Did you have any refund or tax due on the original return?  

Level 2
Nov 18, 2023 2:55:10 PM

Thank you @VolvoGirl !  It was blank. And there was no refund, or tax due on the original.

 

My original 1040 was prepared using a free web-based, non-TurboTax, program.  That program did not allow me to amend, so I switched to TurboTax desktop 2021 and, according to threads in this community, recreated the original in order to amend with TurboTax desktop.

 

In either case, line 30 was blank, and there was no refund, or tax due on the original.