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.
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:
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!
turbotax added $1800 to the return even though I never answerd the 2 stimulus questions
@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.