I'm running my taxes for the year and TT is showing a federal refund of 3980 BEFORE I enter the $1200 and $600 stimulus payments. Once I enter those 2 amounts, the refund drops by $1800 to $2180.
Is this right? I thought those payments weren't being counted as income or being taxed, yet my refund is smaller by the amount of those payments?!? Something doesn't seem right to me.
My AGI for 2020 is $65,400, well under the income limit for the stimulus money.
Can anyone please explain this to me?
Thanks.
You might have become confused by the flow of information in the software. That "refund monitor" on your screen displays a "refund" amount that includes the stimulus money. as part of your 2020 refund. But later when you enter the amount of stimulus you really received already, it removes the stimulus already given to you. And it looks to you like you "lost" your refund, But ---you do not get the same stimulus money twice--that is why it came out.
Look on line 30 of your Form 1040 for your recovery rebate amount.
https://ttlc.intuit.com/questions/1901539-how-do-i-preview-my-turbotax-online-return-before-filing
Click on Tax Tools on the left side of the screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.