TurboTax Third Stimulus AGI Error

[thino7]

TurboTax asks if I received a third stimulus check amount of $0.  When I answer "Yes, $0 is right" it adds a calculated stimulus check amount to my tax refund for 2021, based on my 2019 AGI.  However, I e-filed (with TurboTax) my 2020 return early enough that the IRS used my larger 2020 AGI to determine that I should not get a stimulus check.  According to the IRS website, this is the process the IRS used and I don't qualify for a third stimulus check, so I don't know how to get past this error in TurboTax that would result in an incorrect additional refund amount.  If I answer "No, update amount" and put in zero, it still insists on adding the additional calculated stimulus (based on my 2019 AGI) to my refund.  There needs to be a way to get past this error!

[xmasbaby0 · Accepted solution]

The recovery rebate credit for the 3rd EIP payment is based ONLY on your 2021 income.   It is not based on your 2020 income or your 2019 income.    People who received the EIP payment based on those earlier tax returns do not have to pay it back, but the IRS is not going backwards now and using income from those years to determine if you get the credit on your 2021 tax return.   If you are eligible according to your 2021 income then you can get the credit on line 30 of your 2021 Form 1040.