Stimulus payments from the government to taxpayers in April and December 2020 are not taxable. However, the amount you received (and zero if you received none) must be reported on the 2020 Income Tax Return. The amount to report is the gross amount of the payments, before any withholding or offset.
(If an individual owed past due child support, the first Economic Impact Payment was applied to that debt and the net would have been at least lessened or possibly reduced to zero.
The second Economic Impact Payment was not offset for any federal or state tax debts.)
In February 2021, the IRS started mailing Forms 1444 and Form 1444B to taxpayers; these report the gross amount of your Economic Impact Payments.
The gross amounts can also be found in a taxpayer’s Online Account at IRS: Create or view your account.
If you received Economic Impact Payment(s) by Direct Deposit, or if you deposited your stimulus check(s) into your bank account, your bank statements will show the net amounts after any offsets or after any application toward past due child support.
Be sure to include the total of your 2020 Economic Impact (stimulus) Payment(s) – even if the amount is zero – with the documentation that you provide for your income tax preparation.
Kenneth Athon Tax Strategies 