If someone pays you money they owe you, does it count as income

[Texas Roger]

Repayment of money owed is not income and is not entered on your tax return. 

[TomD8]

But if they pay you interest, the interest is taxable income.

[Opus 17]

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@Texas Roger wrote:

Repayment of money owed is not income and is not entered on your tax return. 

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However, repayment of a past tax deduction is taxable income.  In the (rare) event where previously took a deduction for a bad debt or theft loss, and you have now been repaid, that repayment may be taxable income.  Not because loan repayments are usually taxable, but because repayments of tax deductions are taxable.