It isn't taxable actually.
The stimulus checks have no bearing on the income reported on your tax return. However, it is used to calculate the Recovery Rebate Credit which is why it is needed when you prepare your income tax return.
The Recovery Rebate credit is calculated on your 2020 income tax return and is dependent upon what was entered into the program. If you were eligible for both stimulus payments but did not receive them or received less than you were entitled to, you would have received the credit if you met all of the other requirements.
The amount of this credit is used to offset any existing tax due. If there is excess credit remaining after being applied to your tax due, you will be refunded for the excess amount.
Please see the attached link for more information on who can claim the credit.
Recovery Rebate Credit eligibility
@Lori601
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