Stimulus Payments: The stimulus payments themselves are not taxable. They are considered a Recovery Rebate Credit and do not count as income.
Interest on Late Payments: Any interest payment from the IRS is taxable income for the year you receive it. If the IRS pays you interest of at least $10, it will send you a Form 1099-INT reporting the interest in January of the following year. This interest must be included in your taxable income.
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