Stimulus Payment Issued To A Deceased Taxpayer

[Mascafe]

A client called me today to inform that she had received a $1200. stimulus check payable to her deceased mother. Her mother died in 2018.

What is the proper way to handle this error?

[George4Tacks · Accepted solution]

Hang onto the check. IRS is currently trying to figure out how to get it back. 

ADDED 5/2/2020 It looks like IRS may have a plan https://www.irs.gov/taxtopics/tc161 @Mascafe 

[Mascafe]

The check was even made out with, "deceased", after her name.

[IRonMaN]

Evidently folks at the Treasury Dept didn't get as far as Jethro Bodine in school and don't know deceased means dead.  I am a little curious on how some of these checks are being cashed though - unless folks in the Treasury have some of their relatives working as bank tellers.

[jeska210]

My mom passed March 31,2020 and received her stimulus in her bank on April 15th. I am her daughter and beneficiary on her bank account, which I've already gone in a d signed papers at her bank to tramsfer and close her account. Now I am being told by the bank that the money has not been transferred yet because the irs is trying to take back her stimulus...which I believe is wrong. My mother claims my 2 daughters which is why she received $2200, and I believe that is money she should be able to keep not return. She just passed and I believe these checks were sent out before she passed so she should be able to keep. I understand where it's people that have passed before like years ago, but my mom was alive during this pandemic. Im so annoyed right now, and I cant even speak with anybody. Help!!

[George4Tacks]

@jeska210 don't close account yet. From your statement, you probably need to file a 2020 tax return.

[qbteachmt]

@jeska210 

You just made a username on a forum that you know nothing about. That is not how to stay safe on the internet. This is a forum for users of specific tax preparation programs for their Clients. This is not a Self-Help forum. You are lost on the internet.

"which I believe is wrong."

When the 2020 taxes get prepared, this will be settled. Whether you keep the money or not isn't really your choice; it falls under US Treasury rules for the relief funds. Which you would learn if you work with a professional tax preparer.

[IntuitBettyJo]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.  Since your question is directly related to stimulus payments please visit this link for more information: How will the stimulus package impact me?

Cheers!

Betty Jo