I have this same situation except received a paper check after my MIL's death. We did not send it back but did not cash it. The Turbo Tax calculation for 2020 provides her the refundable credit for both if I say she received neither. I have read that the IRS canceled the checks for deceased taxpayers, though the check indicates it is good for a year. If I try to deposit it now, indicate the payment was received and forgo the credit, I can envision later the check will be charged back. Or, if I just take the credit and ignore the check, I'm not confident that at some time in the distant future, the IRS will discover that she received a check, and eliminate the credit (long past the one year date on the check). Her 2019 return was filed before she passed away, in Feb 2020, and we are still awaiting her 2019 tax refund. Any advice?
