I am helping my brother-in-law do his 2020 taxes. My sister passed away in June 2020. Of course she would not have received the 2nd Stimulus.
When I get to where it asks what Stimulus Payments were received and I put "No" for her on the 2nd payment, it automatically adds it to his refund.
How do I get around this?
I have in the beginning of the return that she passed away and what date.
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This is correct. The law allows any "taxpayer" to claim the credit or rebate, and your sister is still a taxpayer for 2020, because she died during the year and her spouse is filing jointly. This is confirmed on the IRS web site and the written instructions for form 1040. (In fact, it never made sense that the IRS demanded repayments, because it was clear the law would always allow this.)
That is interesting! Why would she not have received it when he received his?
This is still somewhat confusing.
@RERC wrote:
That is interesting! Why would she not have received it when he received his?
This is still somewhat confusing.
See question B12 here.
https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility
I have no idea why the IRS was canceling payments to taxpayers who were deceased in 2020, when the law is written the way it is. Bureaucracy I suppose.
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