Third stimulus - letter 6475

Forum|Forum|4 years ago
March 27, 2022
1 reply
8 views

I've been reading that the third stimulus payment is not taxable, but when I enter the amount the amount we received ($5600) into TurboTax, it is showing that we now owe $3035. What is going on?

LenaH

Employee Tax Expert

Stimulus checks are not taxable. Before you entered your stimulus check, TurboTax was likely giving you the Recovery Rebate Credit, which lowered the amount of tax due, giving you a refund. The Recovery Rebate Credit is only for taxpayers who did not get the third stimulus payment and are eligible based on their 2021 tax return. However, once you entered the amount of stimulus payment received, it eliminated the credit. In return, this raised the amount of tax due.

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dwible1Author

Level 2

Thanks for your quick response. It sounds like TurboTax is double-counting the credit we received. However, I am still confused. Does this mean I enter zero for the amount listed on the two 6475 letters we received?

xmasbaby0

Level 15

@dwible1 No----You enter the amounts that you received. If you enter zero you will be trying to get the same stimulus check again and you cannot get it twice.

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---you just cannot receive it twice.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**