topic Stimulus Credit in Deductions & credits

Stimulus Credit

bob153744 — Mon, 29 Mar 2021 18:55:18 GMT

Stimulus Checks based on our 2019 submission. Wife died in Aug. 2020. If I look at Turbotax section on credit in Federal Review I can answer the 2nd check issue two ways. If I put in 600 (for me) , Turbotax adds 600 for my expired wife. Refund is +600. If I put in 1200, then Govt. can come back and ask for 600 be returned to them. Both ways I can face govt audit and consequences. Have not submitted 2020 return yet.

Re: Stimulus Credit

DoninGA — Mon, 29 Mar 2021 18:59:30 GMT

Someone who passed away in calendar year 2020 and who was otherwise eligible can receive both EIP1 and EIP2.

IRS website - https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

Q B12. Deceased Individuals: Are individuals who died during 2020 eligible for the credit on their Tax Year 2020 return? (added February 5, 2021)

A12. An individual who died in 2020 or in 2021 and did not receive the full amount of the Economic Impact Payment may be eligible for the Recovery Rebate Credit if the individual met the eligibility requirements.

Re: Stimulus Credit

NCperson — Mon, 29 Mar 2021 20:13:27 GMT

first, sorry for your loss.....

here is how the stimulus works -

for the first stimulus, anyone who died in 2020 gets to keep the stimulus if they died after receiving the payment. (this got very confusing and frustrated families where someone died early in 2020 and the stimulus came shortly there after)

for the 2nd stimulus, Congress made the law quite clear: anyone living on 12.31.19 was eligible for the 2nd stimulus, even if that meant the stimulus was received by the estate after the person died,

for both stimulus payments, the law was quite clear that if you received more stimulus that you were entitled to, you were not required to return it. Line 30 is where additional stimulus payments appear (called "recovery Credits"). If you were to look closely at the worksheet that supports that line, lines 18 and 20 cannot be less that zero - documenting that if you were given too much there is no requirement to return it. Line 30 of form 1040 can not be negative because lines 18 and 20 of the worksheet can not be less than zero!)

Since you are filing a joint return in 2020 (as if you wife was still alive), enter what you and your wife ACTUALLY received for stimulus when asked in the federal review section. (do not try to outsmart the system - enter what you ACTUALLY received by both of you!!!!) What appears on Line 30 of Form 1040 is what you are entitled to by law!

There is going to be no audit or consequences as this is the way the law was written.