Stimulas Check

[melwentz]

The Turbo Tax software seems to have a glitch in that once a taxpayer states he has received the Stimulus check the taxed owed increases. I have seen several customers ask this question and it makes a customer feel that the Stimulus check is taxable since that is the only entry made and the tax liability number increases at the top of the page. 

The canned answer to the questions as to whether the Stimulus check is taxable, is that the increase in taxes due is simply the difference between taxes paid and taxes due. If the Stimulus amount is not taxable why does the tax liability increase when completing that page?

If the canned answer is correct you should revise your program to prevent the confusion.

I have always done my taxes myself in the past but have converted to Turbo Tax in the past few years for the simplicity in filing the return electronically. But I do not like the fact that I cannot see what is happening within the program with each new entry. When I prepare my return myself I know with every step what the calculations are and how the final numbers are obtained.

Mel Wentz

Mel Wentz

[Bsch4477]

Mel, the answer is that the program gives you the stimulus that you are entitled to receive based on your 2021 return. When you report what you actually received that amount is deducted so you don’t receive it twice. 

[fanfare]

@melwentz 

Use TurboTax CD/download not TurboTax Online.

TurboTax Online is for those filers who are forms-challenged.

Meanwhile, TurboTax user interface has resulted in millions of tax returns that have to be adjusted by the IRS.

[Critter-3]

Let me explain how stupid the placement of the stimulus question in the interview flow is  ...  the program INCLUDES  the entire stimulus credit you are eligible for based on your 2021 income  in the REFUND METER you see  BUT  much later in the interview flow, when  the program finally asks how much  you already got  in the third stimulus  advance payment  and you enter that amount   it is then removed from the estimated refund posted (or increases the balance due).  It is not being "paid back" but you cannot have BOTH  the credit  AND  the advance. 

It would be nice if the TT programmers would have asked for that information in the beginning of the interview (like in the MY INFO section)   BEFORE you entered in the income   BUT the programmers did not ASK us posters in this forum  AND  they will not listen to us now and change it so I have been posting this answer A LOT  this year.  

[VolvoGirl]

It is not taxable and you aren't paying it back.  Your 2021 return starts out by assuming you didn't get any Stimulus payments so it gives you credit for the full amount and your refund was too high.  Then near the end you enter how much you actually got so it only gives you the difference if any.  So you don't get it again.

Look at your tax return.   It is not added as income anywhere or subtracted anywhere.  Income is only on 1040 lines 1-11.  The Recovery rebate credit on line 30 is only if you didn't get the Stimulus payment or qualify for more.