Confusion about stimulus payments to dead people.

[Stokie040372]

My wife passed away in January 2020. In March 2020 I received two $1200 stimulus payments, one for myself and one for my deceased wife. In January 2021 I received the second stimulus payment of $600 for myself but not for my wife. TurboTax is giving me a $600 credit for my deceased wife’s second stimulus payment.

I’ve read various reports that dead people are not eligible for the stimulus payment and that it should be returned to the IRS if paid.

Does anyone have a definitive answer as to whether dead people are eligible to receive the stimulus payment?

[ErnieS0 · Accepted solution]

Persons who passed in 2020 are eligible for the economic impact payments.

The IRS says: “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.”

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

If you only received one $600 payment, then you are entitled to claim the second payment as a Recovery Rebate Credit on your income tax return. Page 57 of the Form 1040 instructions say:

Generally, you are eligible to claim the recovery rebate credit if in 2020 you were a U.S. citizen or U.S. resident alien, weren't a dependent of another taxpayer, and have a valid social security number. This includes someone who died in 2020, if you are preparing a return for that person.

[PCBarnes2017]

Question - working on my Mother's tax return for 2020 and she passed away 04/30/2020.  Turbotax is calculating she eligible to receive 1st Stimulus payment - $1200.00 and 2nd Stimulus payment - $600.00  She probably is eligible for the 1st but I don't agree with the 2nd payment of $600.  How do you correct this in Turbo Tax?

Thanks for your help

[JamesG1]

The IRS revised its treatment of deceased taxpayers after the passage of the Consolidated Appropriations Act in December 2020.  Your mother may be eligible.

Will a deceased taxpayer receive the payment?

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 will 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.

[dlramey0804]

My Mother-in-law died in March 2020.  She received a stimulus check in April, but at the time of filing a tax return for her trust, the money was returned per IRS regulations at that time.  With the Consolidated bill passed, is she now entitled to receive and keep it?

[PattiF]

The IRS allows people who died in 2020 to be eligible for the Second Recovery Rebate Credit. People who died in 2020 are not eligible for a third stimulus payment.

[dlramey0804]

2 part question.  You replied to the 2nd.  Since the 1st pmt was received and returned to IRS, should deceased claim to not have been paid, thereby receive the 1st pmt as well?

[ErnieS0]

@dlramey0804 Your mother-in-law is entitled to receive the first stimulus payment. Since it was received and return, enter $0 as the amount received for the first stimulus;

[dlramey0804]

Thanks so much for your help!