sorry for your loss;
the 1st stimulus payment is to be returned; it should not be reflected on the tax return in any way. I did test this in Turbo Tax (desktop) and it may overstate your refund.... because it gives a stimulus credit for someone who passed away in 2020. What is tricky is that the IRS ruled that if the person passed away prior to receiving the stimulus, it needs to be returned outside the tax return, but if the person passed away after receiving it, it is their to keep. So that is hard to program I would imagine. It is the honor system to return it.
the 2nd one is yours to keep - because of the confusion on the 1st stimulus, Congress made this clear on the 2nd stimulus. Anyone who passed on or after January 1, 2020 is entitled to the stimulus.
that is the way the law was passed.
@VolvoGirl @Critter-3 - can someone re-test the 1st stimulus on someone who has passed away? I could not get TT to remove the 1st payment - it would be hard to program since it is unknown whether someone received the stimulus before or after they passed.
