Stimulus Paid to Deceased

[CatinaT1]

You don't ask a question so I am not sure what stimulus payment you are asking about.

For the first two stimulus payments, if you were alive at anytime in 2020, you are  eligible. 

For the third stimulus payment, if you were alive at any time during 2021, you are eligible.

  

You can see the details here: 

• Checking the Eligibility Section posted here: Questions and Answers about the Second Economic Impact Payment  

• Running through  the Rebate Recovery Worksheet for Form 1040, Line 30. 

We are sorry for your loss. You may wish to review this resource for more tax guidance: Death in the Family. 

For full details, see IRS Resource: 2020 Publication 559: Survivors, Executors, and Administrators 

[Anonymous]

Thank you. I had some trouble posting my question. 

I am preparing my mother’s tax return. She died in March 2020, but received the first stimulus payment the following week in April 2020 (as a direct deposit to her bank account; we never requested it).

When I reported on TurboTax that she received the first stimulus, but not the second, it enters a CREDIT, which I obviously don’t want. I entered her date of death, so I thought TurboTax would account for this scenario.

I’ve read several answers to this question: (1) the first stimulus needs to be returned to the IRS; (2) my mother was indeed eligible for the first payment because she was alive on January 1, 2020.

Everyone seems to be flummoxed by this. If anyone can respond, please don’t speculate. If you have an official answer, can you share it?

[ReneeM7122]

Yes, you are correct.  you do not have to return the stimulus payment for your mother.

The rule is that if had she passed  in 2019 or before, you should return the payment.  But if she died in 2020, the payment belongs to the estate.

In the IRS language:

If a first payment was made to someone who died prior to January 1, 2020,  it should be returned to the IRS by following the instructions in Topic I: Returning the Economic Impact Payment. 

This is the link you need:

https://www.irs.gov/newsroom/questions-and-answers-about-the-first-economic-impact-payment-topic-a-e...

@David G20