topic The Turbo Tax form applied the EIP 2 credit even though the Date of Death was entered. If the tax payer died in August 2020, do they still qualify for the EIP 2? in State tax filing

The Turbo Tax form applied the EIP 2 credit even though the Date of Death was entered. If the tax payer died in August 2020, do they still qualify for the EIP 2?

bbrinsonsr — Thu, 01 Apr 2021 04:41:14 GMT

Re: The Turbo Tax form applied the EIP 2 credit even though the Date of Death was entered. If the...

HelenC12 — Thu, 01 Apr 2021 14:02:41 GMT

I'm so sorry for your loss.

Yes, they qualify because the second stimulus is based the 2019 income tax return.

Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid for employment (see exception when married filing joint) and your adjusted gross income (AGI) does not exceed:

$150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
$112,500 if filing as head of household; or
$75,000 for eligible individuals using any other filing status

Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.

You aren’t eligible for a payment if any of the following apply to you:

You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).
You don’t have an SSN that is valid for employment issued before the due date of your 2019 tax return (including any extensions).
You’re a nonresident alien.
Someone was deceased before 2020.
Are an estate or trust.

However, you may be eligible to claim a Recovery Rebate Credit on line 30 of your 2020 tax return. Please refer to the instructions for the 2020 Form 1040 for more information.

Turbo Tax Calculated Credit for an Individual who died on March 2, 2020

Mark186 — Fri, 23 Apr 2021 03:35:27 GMT

Does the Stimulus Payment, or in this case, Payment Credit, apply for a deceased individual? Does this credit apply to someone who passed before the Pandemic even began, thus before any stimulus existed? If it does apply, does the stimulus payment become part of the estate of the deceased, or how is it accounted for? The deceased is to receive a small Federal Refund for taxes paid in early 2020 before his death, but what about the stimulus if it's appropriate to be received after his death?

Re: Turbo Tax Calculated Credit for an Individual who died on March 2, 2020

LenaH — Mon, 26 Apr 2021 17:53:36 GMT

Yes. Per the IRS, a payment won’t be issued to someone who has died before January 1, 2020. However, eligible individuals who died in 2020, should claim the Recovery Rebate Credit their 2020 tax return. This credit will increase the federal refund amount on their tax return.

@Mark186