Why is the 3rd stimulus check creating a tax liability?

[LDrolet138]

Preparing 2021 tax return:  Married filing jointly, no children and have an AGI of under $100k.  Prior to the question on the 3rd stimulus payment, we had a refund amount of $104.  After answering this question, Yes, (we received the $1400 each), we now have a Federal Tax Due of $2,731.  I thought the stimulus payments were not taxable and were not suppose to impact the tax returns?     Help Please!!

[DoninGA]

The third stimulus payment for the both of you was entered as Recovery Rebate Credit on your Form 1040 Line 30 before you were asked if the payments were received.  When you indicated that you received the $2,800 in stimulus payments, the credit was removed from Line 30 on your tax return.  

You can view your Form 1040 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.

[LDrolet138]

So do I re-enter the $2800 on the Form 1040 Line 30 to make the tax liability go away?

[DoninGA]

---

@LDrolet138 wrote:

So do I re-enter the $2800 on the Form 1040 Line 30 to make the tax liability go away?

---

No.  You cannot get the stimulus payment twice.

[LDrolet138]

So, I now have to pay back $2731 of the stimulus check ...

[DoninGA · Accepted solution]

---

@LDrolet138 wrote:

So, I now have to pay back $2731 of the stimulus check ...

---

No.  The stimulus payment you received is not taxable income.  What you have is a standard tax liability.

Your Total Tax on Line 24 is greater than your Total Tax Payments on Line 33.  So you have taxes owed on Line 37.

[LDrolet138]

Okay, thank you.  It was just weird how Turbo Tax showed a credit prior to the stimulus amount then the tax due afterwards.  I'll check the 1040.