I completed my 2020 tax and when asked about the stimulus package received I answer 1200 dollars and 600 dollars. My returned was only 1 dollar. A friend pointed out that the second stimulus should not be included since I received it on January 4th 2021. So I went back and corrected to "0" instead of 600 dollars leaving only the the first 1200 stimulus check received. After the correction was made my tax refund went up to 601 dollars. Is this correct? or I am being credited by error the second 600 dollars? Please clarify before I send it electronically
If your federal tax refund before any stimulus amounts was entered was $1then that is the tax refund that you will receive. The second stimulus of $600 is entered on your 2020 federal tax return. It is an advance tax credit for tax year 2020. You need to enter $600 as EIP2 received.
On the contrary, my refund was $1 dollar when I entered both stimulus packages $1200 and $600. When I corrected the second stimulus package of 600 to 0 because it was received in 2021 and thought it should be entered on the next year return, then my refund was changed to $601 dollars instead. So, Should I still enter both stimulus although I received the second one this year not last year?
@RickSa wrote:
On the contrary, my refund was $1 dollar when I entered both stimulus packages $1200 and $600. When I corrected the second stimulus package of 600 to 0 because it was received in 2021 and thought it should be entered on the next year return, then my refund was changed to $601 dollars instead. So, Should I still enter both stimulus although I received the second one this year not last year?
Yes, you have to enter both stimulus payments on the 2020 tax return - $1200/$600