Stimulus Payments

I am doing my Mother-In-Law's tax return, she passed away in May 2020. She didn't get the first stimulus payment in April 2020 and obviously isn't entitled to the December 2020 payment. However even though I entered the Date of Death info. the program is still displaying a $600 credit for the December payment. I don't want to enter a number that doesn't exist in case the IRS comes back at us for a payment that we weren't entitled yo nor received. How do I correct?

466

Expert Alumni

Feb 10, 2021 8:12:15 AM

TurboTax is calculating the stimulus payment (Recovery Rebate Credit) correctly. Taxpayers that passed away in 2020, are eligible for the stimulus payment. A payment won’t be issued to someone who has died before January 1, 2020.

Per IRS: for eligible individuals who died in 2020, the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return.

To be eligible:

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.

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Stimulus Payments