I know this doesn't have to do with taxes per se, but thought i could get an answer here. I contacted the IRS and the guy literally read the info from the IRS webpage I had found and told him didn't answer my question.
My brother passed away in Jan 2021. I submitted his 2020 tax return, noting he had passed away and signed it in my name as the preparer. A few weeks after submitting, I receive a $1400 check made out to my brother followed by "Decd" (deceased) and c/o my name also on the check.
The American Rescue Plan was signed into law in March 2021. Yet the check clearly indicates my brother is deceased and my name is on the check. I even received a nice letter from Joe Biden explaining the payment, addressed in the same manner.
Can I go ahead and endorse this check in my name and deposit it? Or does it need to be returned?
The IRS only states -
A payment won’t be issued for someone who has died before January 1, 2021.
Since your brother passed away after January 1, 2021 he was eligible for the third stimulus payment.
sorry for your loss. Normally, a taxpayer will qualify for the full amount if they have an adjusted gross income of up to $75,000 for singles and married persons filing a separate return, up to $112,500 for heads of household, and up to $150,000 for married couples filing joint returns and surviving spouses. Payment amounts are reduced for filers with incomes above those levels. so if the AGI test was met for the month he was alive in 2021 he would have been qualified for the payment and you as his heir would be entitled to cash the check.
Thank you both for your answers. as part of my research before posting, I visited that IRS link, and found the same info under the question about if a deceased individual will receive the payment. My question with their response is it seemed to only focus on spouses. My inclination has been that i can deposit it, but wanted some confirmation if I was reading the IRS correctly. I can undersstand the IRS going ahead with the payment to a surviving spouse, but to another family member doesn't make sense to me. But if the gov wants to provide the money i'll take it. And yes, he qualifies based on income. Thanks again.