Stimulus Payments

[tdbabb22]

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?

[HelenC12]

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.