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you're entering it in the wrong place if it shows up as taxable income on the Federal return. you may need to contact support so it gets entered correctly. you can allow them to see what you did.
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Where is it showing up as taxable?
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.
Where did you find that information that you are being taxed on the stimulus payment?
It is not taxable income, and if you have received it already, you won't receive it again when you file your taxes.
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