Third Stimulus & deceased spouse

[Kridski]

Just lost my husband in late December 2020. He was alive and received the first stimulus. We have direct deposit and filed together for 2019. I kept the second one because I had read there was a precedent for this (due to spouses of recently deceased being allowed to keep payments in 2008). My question is about this new third stimulus. Will I legally be able to keep this one or has the IRS come up with anything specific in regards to my situation?

[JamesG1]

You are correct to receive the first two stimulus payments for your spouse.  At this time, we have no information about whether a deceased taxpayer will receive the third stimulus payment.

Follow the TurboTax COVID Tax Center and the IRS Economic Impact Payment Information Center for further developments.

The TurboTax Help on the American Rescue Plan states:

Third Stimulus Payments for Individuals and Joint Taxpayers

Those eligible will get up to $1,400 in stimulus payments for each taxpayer in their family plus an additional $1,400 per dependent. This means a family with two children could receive $5,600.

Unlike previous stimulus payments, this round all dependents, including adult dependents and college students are eligible for stimulus checks.

Although you may want to file your 2020 return now in order to provide your most recent information to the IRS, including bank account information, you don’t need to do anything to get your stimulus check. The IRS will determine eligibility based on your last tax return, either 2019 or 2020, and will likely send your payment to the bank account where your tax refund was deposited. 

So, how do you know if you may be eligible to receive a third stimulus payment?

If you have an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), you should be eligible for the full $1400 stimulus payment.

*Note, adjusted gross income (AGI) is your gross income like wages, salaries, or interest minus adjustments for eligible deductions like student loan interest or your IRA deduction. Your AGI can be found on line 8b of your 2019 Form 1040 or on line 11 of your 2020 Form 1040.

As your AGI increases over $75,000 ($150,000 married filing jointly), the stimulus amount will  go down. The stimulus check rebate will completely phase out at $80,000 for single filers with no qualifying dependents and $160,000 for those married filing jointly with no dependents. 

Once again, mixed-status households (households with different immigration and citizenship statuses) will be eligible for stimulus payments.

[madematty]

My husband died on January 29, 2921.  Where is the stimulus check?

[LenaH]

Since your spouse passed away after January 1, 2021, he is eligible for the third stimulus payment. The IRS is issuing third stimulus payments throughout the year, so just because he has not gotten one yet, does not mean he won't. If a payment does not get issued for him before the end of the year, you will be able to the the Recovery Rebate Credit on your 2021 return. 

Questions and Answers about the Third Economic Impact Payment — Topic H: Reconciling on Your 2021 Ta...

@madematty