I didn't include $1400 Economic Impact Payment as income since not considered taxable income. Do I need to change income to include it?

No, it isn't taxable for Federal or state. however, there is a recovery rebate form where you need to report it. if you don't your federal refund will be overstated by $1400.  the IRS will catch this and if you owe instead send you a bill.

The $1400 Economic Impact Payment is not considered taxable income.   The question asked about the $1,400 is for reconciliation purposes and if you did not receive it,  you would be able to claim the Economic Impact Payment on your 2021 taxes.