jfarians
Level 2
02-02-2022
03:56 PM
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No. The amounts that should be getting subtracted are the 1st and 2nd stimulus checks, if they were claimed as the Recovery Rebate Credit. For example:
2020 federal refund: $5,000
Recovery Rebate Credit on 2020 tax return included in the federal refund: $1,800
The taxable federal refund on the 2021 Iowa return should be: $3,200
If you received the 3rd stimulus check, and you enter that on the federal Recovery Rebate form in ProSeries, the software will carry the $1,400 to the Iowa return, and incorrectly calculate the taxable federal refund as $3,600 ($5,000 - $1,400).