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notrocketscience
Level 2

TurboTax is adding $1800 stimulus credit on Final return for grandma who passed away before stimulus date

Grandma was one of the first who passed away during the pandemic in March — just before the first stimulus, so she was not entitled. She actually received $1200 but we mailed it back to the IRS. No problem. But now that we’re filing her final return, even though we entered her date of death (which makes her ineligible), TurboTax is adding $1800 in stimulus to her refund. How do we override this?  Thank you. 

1 Best answer

Accepted Solutions
AlanT222
Expert Alumni

TurboTax is adding $1800 stimulus credit on Final return for grandma who passed away before stimulus date

There is no need to remove the credit.  A person who died in 2020 can still claim the recovery rebate credit on his or her final tax return prepared by a surviving spouse or representative if the requirements listed below are satisfied.

 

Generally, you're eligible to claim the recovery rebate credit if, in 2020, you:

  • Were a U.S. citizen or U.S. resident alien;
  • Can't be claimed as a dependent on another person's tax return; and
  • Have a Social Security number valid for employment that's issued before the due date of your 2020 tax return (including extensions).
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4 Replies
AlanT222
Expert Alumni

TurboTax is adding $1800 stimulus credit on Final return for grandma who passed away before stimulus date

There is no need to remove the credit.  A person who died in 2020 can still claim the recovery rebate credit on his or her final tax return prepared by a surviving spouse or representative if the requirements listed below are satisfied.

 

Generally, you're eligible to claim the recovery rebate credit if, in 2020, you:

  • Were a U.S. citizen or U.S. resident alien;
  • Can't be claimed as a dependent on another person's tax return; and
  • Have a Social Security number valid for employment that's issued before the due date of your 2020 tax return (including extensions).
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
notrocketscience
Level 2

TurboTax is adding $1800 stimulus credit on Final return for grandma who passed away before stimulus date

You're right -- turns out the IRS reversed its position on stimulus for people who died prior to the payment.  Last year, they said only living persons were entitled so we sent the check back.  Now anyone who died after Jan. 1, 2020 is eligible. 

 

Great job staying on top of this TurboTax!

hbquincy
New Member

TurboTax is adding $1800 stimulus credit on Final return for grandma who passed away before stimulus date

turbotax added $1800 to the return even though I never answerd the 2 stimulus questions

DoninGA
Level 15

TurboTax is adding $1800 stimulus credit on Final return for grandma who passed away before stimulus date


@hbquincy wrote:

turbotax added $1800 to the return even though I never answerd the 2 stimulus questions


Someone who passed away in  2020 or 2021 and was eligible can receive both the EIP1 and EIP2 on the decedent's 2020 federal tax return as Recovery Rebate Credit.

Go to this IRS website for information - https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

 

A12. An individual who died in 2020 or in 2021 and did not receive the full amount of the Economic Impact Payment may be eligible for the Recovery Rebate Credit if the individual met the eligibility requirements.

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