Economic stimulus for spouse of deceased taxpayer.

[BirminghamBert]

I have a client who files a joint return with spouse. The taxpayer and the spouse received the first stimulus in April 2020. Taxpayer died in June of 2020. Neither one received the second stimulus. Spouse should be eligible. 

Issue is I can't figure out how to input this on the Recovery Rebate Screen. If I input $0 for taxpayer (-1) it calculates a $600 stimulus due for the deceased taxpayer. If I leave it blank then It calculates $600 also. If I input $600 for the taxpayer the calculation is correct on the face of the return (spouse only $600) but I wonder if the Federals will want that $600 back that the taxpayer did not, and should not have, gotten.

Any help appreciated.  

[sjrcpa · Accepted solution]

Alive in 2020 = eligible for the credit, as long as you satisfy the income limits.

[qbteachmt]

Perhaps it would help to review what is really happening:

The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.


https://www.irs.gov/newsroom/economic-impact-payment-information-center-topic-a-eip-eligibility

https://www.irs.gov/coronavirus/second-eip-faqs#Eligibility

One for each EIP.