Date: @ January 2021
Economic impact payment: Any economic impact payment you received is not taxable for federal income tax purposes but reduces
your recovery rebate credit.
Recovery rebate credit. This credit is figured like last year’s economic impact payment, except the amounts are based on tax year
2020, instead of tax year 2019 (or tax year 2018 if tax year 2019 information was not available). The maximum credit is $1,200 ($2,400
if married filing jointly) plus $500 for each qualifying child.
Life Insurance Proceeds: paid to you because of the death of the insured person aren’t taxable unless the policy was turned over to you for a price. This is true even if the proceeds were paid under an accident or health insurance policy or an endowment contract. However, interest income received as a result of life insurance proceeds may be taxable
Unemployment Benefits: (Unemployment compensation). You must include in income all unemployment compensation you receive. You should receive a Form 1099-G showing in box 1 the total unemployment compensation paid to you and it is taxable.
Gambling Losses up to the Amount of Gambling Winnings: You must report the full amount of your gambling winnings for the year You deduct your gambling losses for the year on Schedule. You can’t deduct gambling losses that are more than your winnings.
Improper Claims: If you erroneously claim Credits, even though you are not eligible for the credit and it is later determined that your error was due to reckless or intentional disregard of the rules, you will not be allowed to claim any of these credits for 2 years. If it is determined that your error was due to fraud, you will not be allowed to claim any of these credits for 10 years. You may also have
to pay penalties.