Stimulus Payments Increased the Tax Owed

Question

I am using Turbo Tax to file my taxes for 2020. In Turbo Tax it asked if I received stimulus payments and how many. I received one payment in May 2020 and one payment in January 2021. I entered both payments in Turbo Tax and suddenly my tax owed jump $3000.
Any ideas why is that?

Ben Miller - Remember Monica · Accepted Answer

The stimulus payment was a tax credit paid to you in advance. The amount you received in stimulus payments has a direct 1:1 relationship with your tax liability. Assuming you are eligible for the tax credit, if you had not been paid the stimulus, your tax liability would go down by the amount you should have been paid, but weren’t.

Correct answer by Ben Miller - Remember Monica on April 15, 2021

Stimulus Payments Increased the Tax Owed

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