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3. Beware of Big Changes to your 2020 Tax Returns The 2021 tax season heralds big changes surrounding stimulus payments and unemployment income. If you didn’t receive your Economic Impact Payments (aka stimulus checks), you can claim them on your 2020 tax return through the Recovery Rebate Credit. The credit will either increase your tax refund or reduce the amount you owe (and the credit will apply to both the first and second stimulus payments). To determine your claim amount, refer to your Notice 1444, which provides the first stimulus check payment, and Notice 1444-B for the second round of stimulus checks. The IRS sends these notices by mail to each recipient within 15 days after stimulus payments are made. This information must be included on the Recovery Rebate Credit worksheet when completing your tax return. If you received the full Economic Impact Payment, you won’t be required to complete the Recovery Rebate Credit information on your tax return. If you are one of the tens of millions of Americans who received unemployment income in 2020, keep an eye out for your Form 1099-G, “Certain Government Payments.” Since unemployment income is considered taxable income by the IRS, you are required to report it. This is the case if you had federal or state taxes withheld throughout the year...