My mother died in August 2020. I am filling her final return. Turbo tax shows she gets a $600 stimulus credit. Are deceased taxpayers eligible for the 2nd payment?

[HelenC12]

Yes, TurboTax is calculating the stimulus payment (Recovery Rebate Credit) correctly. Taxpayers that passed away in 2020, are eligible for the stimulus payment. 

Generally, if you are a U.S. citizen or U.S. resident alien, you will receive an Economic Impact Payment of $1,200  ($2,400  for a joint return) if you (and your spouse if filing a joint return)  are not a dependent of another taxpayer and have a Social Security number valid for employment and your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $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 are not eligible for a payment if any of the following apply to you:

• You may be claimed as a dependent on another taxpayer’s return (for example, a child or student who may be claimed on a parent’s return or a dependent parent who may be claimed on an adult child’s return).
• You do not have a Social Security number that is valid for employment.
• You are a nonresident alien.
  The following are also not eligible: a deceased individual or an estate or trust.

[joolzwolf]

I have a similar situation and I'm still confused. Mom received the first stimulus payment in 2020 in the amount of $1,200. She passed away May 31, 2020. Now TurboTax is issuing a credit of $600 for the payment folks received in January of 2021. I just want to make sure this is correct. Thanks!

[Irene2805]

Yes - That is correct.  Since she died during 2020 she is eligible for the second stimulus payment.  The IRS states:  "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."

[joolzwolf]

Thank you!

[PaulMartz]

I'm in a similar situation. My dad died in August. I've already settled his estate with the exception of filing his final tax return. I don't want to have to bother with the $600 tax credit. When TurboTax asks if he received the $600 stimulus check, I am marking "yes". This is not technically correct, as he did not receive the payment. But it avoids the credit and the additional hassle of having to file a paper return and the associated executor of estate paperwork. So it's a win in my opinion.  Besides losing out on $600, is there any downside to what I'm planning to do? Thanks.

[DMarkM1]

As far as the final tax return, losing the $600 credit is the only downside to that action. 

You might consider does including the credit cause a refund over $600?  If the estate income is less than $600, an estate return will not be required. So you may still get both advantages.

The fiduciary (or one of the joint fiduciaries) must file Form 1041 for a domestic estate that has:

1. Gross income for the tax year of $600 or more, or

2. A beneficiary who is a nonresident alien.

3. If you held a qualified investment in a qualified opportunity fund (QOF) at any time during the year, you must file your return with Form 8997 attached. 

[uncleoogie]

I came to the same conclusion. I answered "Yes" to the $600 stimulus check. I will forgo the $600 credit in order to avoid the hassle of preparing and filing additional paperwork.

[DBNJ]

Similar situation... mom (single) passed away 4/1/2020 but her 2019 AGI was $107,000, so she did not get 1st or 2nd stimulus payment. NOW, when doing her 2020 taxes, TT shows that she's owed $1,800 ($1,200 + $600) as her 2020 AGI was $9,000. 

Is mom eligible for $1,800? 

If she is and the check comes to my address in her name, how do I cash it? 

Am I required to do anything else in regard to her final tax return?

Thank you so much for any help 

[JeffreyR77]

Yes, your mom is eligible for the $1,800.  

Form 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer needs to be filed with the tax return. 

You want to make sure you have the final statements from any banks or investment companies, pensions or Social Security before you file to make sure you account for all income from 2020 before you file. 

On the first screen in TurboTax My Info, select I'm preparing this return for XXXXXX, who has passed away. and then enter her date of death. This information will be used later in the return.

You will not be able to efile the final return with the Form 1310.  You will need to print and mail the tax return to the IRS.

[jjreeve]

Turbo tax figures  a deceased person should get a stimulus check-is this right?

[KrisD15]

Yes. 

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. 

IRS Source

[bplapper]

is there an update on this since the March 9 rulings?

[JotikaT2]

The latest legislation will not affect her 2020 income tax return.  She may still be eligible for the Recovery Rebate Credit if she met the eligibility requirements.

Recovery Rebate worksheet

I would recommend reviewing your input in the My info section of the program as well.

Be sure to select that you are preparing the tax return for someone who has passed away under Section 3, A few other things we need to know.

Please accept my condolences for your loss.