Stimulus Checks for Deceased Taxpayer

[B1955]

So I've read dozens of posts/responses on this topic on this Forum as well as the links provided to the pertinent IRS documentation.  The prevailing direction here -- and on the IRS site as well -- seems to be that a taxpayer who died in 2020 (after 1/1/20) is eligible for the two stimulus payments or the credits for them if they were not received.  The only thing that gives me pause is the IRS guidance posted midyear 2020 -- and which is still on the IRS site -- re: returning the initial $1,200 stimulus payment if it was deposited after the taxpayer's death.  That is what happened with my mother-in-law's situation.  She passed in late March and the check showed up in her [product key removed]e checking account a few weeks later.  Per the prevailing advice at the time, as the POA for her estate, I returned the $1,200 via a check to the IRS, which they cashed.  Now I'm trying to finish up her taxes for 2020, and Turbo Tax, the Community Forum responses and the IRS (at least most of its support documentation) seem to be suggesting that she is not only is eligible for a credit for the $1,200 stimulus payment in early 2020, but also the $600 stimulus amount that was approved in late 2020.  Just asking one last time, is this correct?  Thanks in advance for any help. 

[CatinaT1 · Accepted solution]

This is the most up to date information from the IRS.  IRS FAQ. The very first question addresses your concern and was updated as recently as February 5, 2021.

[B1955]

Thanks.  I had read this previously, but appreciate the confirmation that this is the most recent/current prevailing advice and position from the IRS.

[Opus 17 · Accepted solution]

The actual law never required repayment by a deceased taxpayer or prevented a deceased taxpayer from receiving a payment.  I never understood why the IRS required repayment of the advance stimulus payment since it was always going to be on the deceased persons final tax return.

[B1955]

Thanks! Your answer aligns with what I’ve read. So I guess last year’s confusing,even contradictory, guidance can be chalked up somewhat to the fog of the evolving public health and economic crises of that time. But still makes “doing the right thing” beyond murky. So greatly appreciate having your help and that of the Forum experts.

[mke53219]

I was wondering the same thing.  My mother passed at the end of January 2020 and I returned the check but doing this years taxes it is giving me the credit and that didn't feel correct.  But apparently it is.

[KrisD15]

Yes, you will receive a credit for that person. 

Sorry for your loss. 

According to the IRS:

“Will a deceased individual receive the payment? (added January 5, 2021)

 A payment won’t be issued to someone who has died before January 1, 2020. If you filed a joint return in 2019 and your spouse died before January 1, 2020, you won’t receive a $600 payment for your deceased spouse, but you’ll still be issued up to $600 for you and $600 for any qualifying children, if all other eligibility criteria are met. 

Regarding eligible individuals who died in 2020, the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return.  Please refer to the instructions for the 2020 Form 1040 for more information.”

[elainebates65]

Hello May I please ask about being able to keep or return check that was received for a deceased person .  Check was dated 3-26-2021. Our loved one passed on that exact date.  So was deceased when check received. 

[JotikaT2]

At this time, the IRS has only indicated that payments would not be issued to anyone who passed before January 1, 2021.  Since your loved one was alive when the stimulus payment was issued, they were entitled to it even though they did not physically receive the check until the date of their passing. 

Please see the link below for more information as the IRS is updating their website frequently.

Third stimulus payment topics

Please accept my sincere condolences on your loss.

[April73]

Hello,

I have read a few of the posts on turbotax regarding this & also the IRS site & I am just looking for clarification so I know what I need to do or not do.  My brother died back in February 2021, the IRS has already sent the $1400 third stimulus payment to his back account.  Everything that I've read so far tells me that this money can be kept as he died after January 1, 2021.  Is that correct?  Can the $1400 be kept?

[LenaH]

Yes. A payment won’t be issued for someone who has died before January 1, 2021. However, taxpayers who were deceased after that are eligible to receive the third stimulus payment.

Questions and Answers about the Third Economic Impact Payment — Topic B: Eligibility and Calculation...

@April73