Why is TurboTax offsetting taxes owed with my stimulus?

[Puravida143]

It showed I would owe $627 then when I entered the $1200 for this year- it then changed to a refund of $573

[NCperson]

did you enter the stimulus payments received in the Federal Review Section?? 

how much was the 1st stimulus payment?

how much was the 2nd stimulus payment?

what is on Line 30 of Form 1040 (that is the recovery credit).

from that we can understand what is occurring.  

p.s. if you are missing stimulus, that is the way it works - missing stimulus increases your refund (or reduces what you owe) but I'd like to understand the answers to my questions so I am not sending you in the wrong direction .

[Puravida143]

Yes i entered what I received for stimulus #1 and #2 was not received due to a closed bank account. If FED is not offsetting why is my refund still less than my $1200 round 2 stimulus payment? (600 for myself and  600 for my daughter)

[MaryM428]

Tax payers who did not receive their first or second stimulus payment will claim those payments on their 2020 income tax returns. When you fill in the stimulus screen and answer No to receiving the first or second payment, then the amount of that payment gets added to your 2020 refund.  Because you owed $627 in taxes, the $1200 refund was first used to pay that amount and then the remainder was refunded to you.