Stimulus payment

[Jerryhorsman153]

It is my understanding that the stimulus money is not taxable and does not have to payback.  I owe taxes this year and when I entered the stimulus payment it increased my amount owed by the stimulus amount.  I talked to a tax preparer and they said it did not matter how much income you have, it does not have to be paid back.  What is the correct answer? I did not want this money and did not ask for it and am now paying it back.

[xmasbaby0]

What you may not realize is that as soon as you began to prepare your tax return, the software was giving you the $1400 and it was shown on that "refund monitor" -----but when you entered that you received it already, the software had to reconcile the payment you received,   You cannot get it twice---so it looked to you like you "lost" $1400.   You did not lose it and you are not being taxed on it  ---   you just cannot receive it twice.

[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.  The Recovery rebate credit on line 30 is only if you didn't get the Stimulus payment or qualify for more.

[Jerryhorsman153]

Sorry, not logical to me.  My amount owed was increased by $1400 when I entered the amount so it's not a wash.  If I had a $1400 credit to begin with and no other amount was owed, when I enter $1400, it should be 0. Very confusing.