Recovery Rebate Credit Worksheet Deceased Parent

[jimmerxx]

My father passed away prior to the second stimulus being issued in 2020 .  He was living on social security and had no income . on 1040SR line 11 . When the recovery rebate worksheet was completed he was given a $600 credit because he never received the 2nd check , which he didn't because he was deceased . Is this correct ?

[HelenC12]

No, that is not correct. A deceased individual is not eligible for the stimulus payment. See Economic Impact Payment Information Center — Topic A: EIP Eligibility, for additional information. 

Per IRS: A payment made to someone who died before they received the payment should be returned to the IRS. Return the entire payment unless it was made to joint filers and one spouse is still living. In that case, return half the payment, but not more than $1,200.

If someone can't deposit a check because it was issued to both spouses and one spouse has died, the individual should return the check. Once the IRS receives and processes the returned payment, an Economic Impact Payment will be reissued to the surviving spouse.

For additional information, see Returning an Economic Impact Payment.

[jimmerxx]

To clarify he never received the 2nd stimulus check . When the worksheet is filled out via turbo tax line 33 of 1040 sr is populated with $600 from line 21 of the recovery rebate credit worksheet . Since he never received the $600 it is crediting his taxes with this $600 he never received because he passed away 

[KathrynG3]

Actually, if your father passed in 2020, not 2019, he is eligible.

You can see for yourself by

• 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

@jimmerxx

[pepper7]

My father passed away in April 2020.  He received a stimulus check of $1200 in April, but did not receive the $600 relief later in the year.  If I claim the $600 Recovery Rebate, he will be eligible for a small refund (~$300).  However, it makes the tax submittal ineligible for an electronic submittal.  Also it is asking me for me SSN and address to 'claim' his refund.  TurboTax is saying that I cannot use his EIN for a trust.   I will deposit the refund into his trust account.  So how will that affect me?  Will I need to claim the amount on my taxes next year?  Can I simply not claim the $600 credit?

[ReneeM7122]

Yes, you can simply not claim the $600 credit, and then the amount will not be a part of your taxes next year.