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Level 1
January 23, 2021
Question

Why are my stimulus checks affecting my return?

  • January 23, 2021
  • 6 replies
  • 20 views
Stimulus checks aren't supposed to affect returns and not supposed to be considered income.  If I claim them, I end up owing taxes.  If I don't I get a large return.  Why the change if they aren't supposed to affect my returns?

6 replies

VolvoGirl
Level 15
January 23, 2021

Because Turbo Tax started out by giving you the full amount.  So your refund was too much.  Then when you enter what you already got you only get the difference if any.  You don't get it again.

Level 2
February 20, 2021

I don't understand that answer. Explain

VolvoGirl
Level 15
February 20, 2021

When you started your tax return Turbo Tax assumed you did not get any stimulus checks so it gives you the full 1800 stimulus as a refund on your tax return.  Then at the end you enter you already got the 1800 so it takes it out of your refund.  Because you already got it.  You don't get it twice. Or if you only got the first 1200 you still get the second 600.  Check 1040 line 30 for any amounts you didn't get during the year.