Why are my stimulus checks affecting my return?

[maryrobitz]

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?

[VolvoGirl]

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.

[JohnEP]

I don't understand that answer. Explain

[VolvoGirl]

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.  

[gcdavis69]

Sorry, but that's still not explaining it. 

In years preceding the stimulus payments, I would get substantial refunds. For some reason this year, the stimulus payment is making me owe money. 

So, yes. It's a loan. 

Oh, and someone needs to let these writers know that they are not providing correct information. 

https://www.sloanlawfirm.com/how-will-stimulus-payments-affect-taxes/

https://www.the-sun.com/money/4528844/

So either the writers don't know what they're talking about, or the IRS is misleading us. This will GREATLY impact the economy this year if people are being forced to pay this money back. 

[RobertB4444]

@gcdavis69  In that case it isn't the stimulus that has changed your refund.  Something else has changed it. 

If you usually get big refunds and this year you did not what is different for you this year?  The child tax credit paid out in advance and that has effected some folks.  Did the withholding on your paycheck go down?  Did you suddenly make more money?  Less money?  What is different between this year and prior years?  You need to look at last year's numbers and figure out the difference if you're going to solve this for yourself.

[fanfare]

The IRS will never ask for EIP1, 2 or 3 to be returned.

Line 30 on your tax return should show the amount of EIP3 for which you qualify but did not get.

If IRS records show the amount was mailed to you, they will zero out Line 30.