Why am I getting a 600 dollar credit for the second stimulus check when husband died in May? I will not file until I know.

[KathrynG3]

You are allowed to receive your husband's portion if he passed away after January 1, 2020. 

See IRS Questions and Answers about the Stimulus Payments:

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. 

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.

In TurboTax, the section you will need is at the beginning of the Federal Review. But, to see it, you need to be at the end of Other Tax Situations, first.

 To get there in TurboTax, follow these steps:

• In your return, click the Other Tax Situations tab toward the top of the page
• Scroll down to the end and click Let's keep going
• At Let's make sure you got the right stimulus amount, click Continue
• Be sure to report an amount for each of the stimulus payments as received.

You may wish to review this resource for more tax guidance about your situation: Death in the Family.

We are so sorry for your loss.

[Opus 17]

Yes, it makes no sense.  The IRS was demanding the return of payments to deceased spouses over the summer, but is now paying them as rebate credits on the tax return.  The law makes this a credit on the 2020 tax return, so what you get is based on your 2020 tax return, and a spouse who died during 2020 is still eligible.  (It was always this way, and it was the demand to return the early payments that never made sense to me.)

You are entitled to both  round 1 and round 2 for yourself and your spouse, and if you returned the round 1 payment, you should subtract that from what you report as received. 

[mollyanna]

My husband died in December 2020.  Should he have been entitled to the 2nd Stimulus check of $600?

I received one in February 2021 for $600, but on $1,200.  Should I indicate that on my tax return to receive a Recovery Rebate Credit?

Thanks

[DMarkM1]

A taxpayer who died after 1 January 2020 is eligible for the Recovery Rebate Credit on the 2020 tax return.  If you file a joint 2020 tax return then your total eligibility amount will be $2400 and $1200 for a total of $3600.  That credit amount will be reduced by any payments you actually received in rounds one and/or two.  So if you received $2400 and $600 then the credit added to your return will be $600 for the missing second round payment.

Here is a link with more information on the Recovery Rebate Credit.

[mollyanna]

Another question:  My return keeps getting rejected saying IND-031-04 - The primary taxpayer's AGI or Self-select PIN from last year does not match IRS record.  Saying doesn't match for John.  We filed a joint return and I put in the AGI that shows on my return.    He is now deceased, so I tried entering O, but that didn't work either.  I just don't know what to do??? Can you help?

[ReneeM7122]

If your spouse passed away in 2020, then TurboTax was correct in calculating a 600 dollar credit.

According to IRS updated information:

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:

Filed electronically and the tax software [helped] you figure the Recovery Rebate Credit. 

If your spouse passed away prior to January 1, 2020, then he would not does not qualify for the Recovery Rebate Credit. Please see this IRS link for information.

@mollyanna

[mollyanna]

Confusing!!  You are saying I am not entitled to the other $600, but my answer above says I am.

A taxpayer who died after 1 January 2020 is eligible for the Recovery Rebate Credit on the 2020 tax return.  If you file a joint 2020 tax return then your total eligibility amount will be $2400 and $1200 for a total of $3600.  That credit amount will be reduced by any payments you actually received in rounds one and/or two.  So if you received $2400 and $600 then the credit added to your return will be $600 for the missing second round payment.

How do I know who is correct?

[Opus 17]

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@ReneeM7122 wrote:

If your spouse passed away before the payment was received, it should be returned to the IRS.  Please see this IRS link for instructions and information.

@mollyanna

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NO!  See FAQ B12 here,

https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

[Opus 17]

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@mollyanna wrote:

Another question:  My return keeps getting rejected saying IND-031-04 - The primary taxpayer's AGI or Self-select PIN from last year does not match IRS record.  Saying doesn't match for John.  We filed a joint return and I put in the AGI that shows on my return.    He is now deceased, so I tried entering O, but that didn't work either.  I just don't know what to do??? Can you help?

---

If you filed a joint tax return last year, you both have the same AGI, enter it in both places.

Note that some people report a bug in Turbotax that prevents some people from filing with a deceased spouse. I have not verified this, and there is no official notice agreeing that this really is a bug.  Also, sometimes the IRS locks out deceased taxpayers based on their SSNs to prevent fraud.  So it's possible that if you went to a different tax software company, you might be able to e-file, or you might also be blocked there. If using the same AGI for both spouses does not work in Turbotax, you will have to try another company or file your return by mail.  

[Opus 17]

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@mollyanna wrote:

How do I know who is correct?

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Turbotax is programmed correctly.  Also, see FAQ B12 here,

https://www.irs.gov/newsroom/recovery-rebate-credit-topic-b-eligibility

Did you have a question about the rebate or just your e-file rejection? I answered that above. 

[mollyanna]

Both, I guess.  One answer I thought I was entitled to the other $600 because my husband did not pass away until December 2020, but my 2nd payment was not received until February 2021.

But my return keeps getting rejected saying John's AGI doesn't match.  I only have one AGI from 2019 because we filed jointly.  Sounds like I should just mail the return.

[Opus 17]

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@mollyanna wrote:

Both, I guess.  One answer I thought I was entitled to the other $600 because my husband did not pass away until December 2020, but my 2nd payment was not received until February 2021.

But my return keeps getting rejected saying John's AGI doesn't match.  I only have one AGI from 2019 because we filed jointly.  Sounds like I should just mail the return.

---

If you are filing a joint return and your income is below $150,000, then you would be entitled to $2400 in round 1 and $1200 in round 2 payments.  If you received less than that, Turbotax should claim the difference for you.  If your income is more than $150,000, the credit will be reduced or disallowed so you won't get more on your return.

[jnelson824]

My husband died in July and I received $600 for my second stimulus check.  When I entered that in Turbo Tax it wants to add $600 to my refund. What am I suppose to do?