Recovery Rebate Credit

[topcattoo]

My Dad passed away March 27, 2020.  Mom got the $1,200 first stimulus and the $600 second.  TurboTax is calculating an additional credit if $1,800 as though Dad would qualify for both even though he passed.  Is this correct?

[JotikaT2]

It depends.

The Recovery Rebate Credit is actually calculated based upon the input in the 2020 tax return and is calculated according to the information entered into the return.

See the excerpt from the IRS below which directs taxpayers to input the amounts listed in situations where one taxpayer passes away during the year.  This would apply to your parent's return as your mom is still able to file using the Married Filing Joint status for 2020.

Recovery Rebate worksheet

I would recommend reviewing your input in the My info section of the program as well.

Be sure to select that you are preparing the tax return for someone who has passed away under Section 3, A few other things we need to know.

Please accept my condolences for your loss.

[topcattoo]

Thank you!