Sample 3′ The economic impact payment you received in 2020 is a refundable tax credit. You don’t have to include it as taxable income on your 2020 federal income tax return. The law also doesn’t require you to pay back any stimulus payments you received even if you don’t qualify. Do keep the notice you received with your tax records.1
Several CARES Act provisions have made extra funds available from retirement plans, leading to tax consequences.
Required Minimum Distribution (RMD) Waivers
Older taxpayers are required to take a minimum distribution (RMD) from their IRA or workplace retirement plan, but this requirement has been waived for 2020, including beneficiaries of inherited accounts. Those who took the distribution in early 2020 were given the opportunity to return the funds to their retirement account. The return of these funds must have been made by August 31, 2020.