Stimulus Check Decreased My Return

[kyle8511]

I think my return is being significantly impacted by the stimulus payment I received in 2021, even though everywhere I read that it should not do that. Even the little bubble above the entry box for it states that if I got paid too much I do not have to pay it back, yet when I fill in that box my return amount goes from $200 in my favor, to me owing the federal government $1200. This is the entire amount of the stimulus payment, and that is the only box that I am changing. Everywhere I look online even says that it shouldn't reduce my refund amount, but it is, dramatically. Any help or explaination would be greatly appreciated.

[MayaD · Accepted solution]

The stimulus payment is not taxable and it doesn't reduce your refund. 

When you start your return, TurboTax assumes that you haven't received stimulus payment, so it begins giving you the maximum amount.

When you enter the actual amount received, it adjusts your refund to account for that.

[kyle8511]

Thank you for the reply, and the clear answer! After doing some searching on here for other questions, it seems that this is an issue that they should really rectify, since there seem to be several many other people on here who do not understand that either. It is a bit infuriating when there is a pop up saying "this won't change your taxes", but when you fill it out, it changes your refund amount. Get that IT department moving on this one. Lol