If someone died in February 2020, do they get:
Stimulus #1?
Stimulus #2?
We were told if someone died before receiving stimulus #1, they send it back, but are entitled to stimulus #2.
If spouse of deceased (decesed July) sent stimulus # 2 back to IRS, do we pick up Stimulus #2 on their 2020 return?
The IRS has released some FAQ's that cover some of this:
For the first payment FAQ:
A5. If a first payment was made to someone who died prior to January 1, 2020, it should be returned to the IRS by following the instructions in Topic I: Returning the Economic Impact Payment.
Joint filers with a deceased spouse: For payments made to joint filers with a deceased spouse who died before January 1, 2020, return the decedent’s portion of the payment. This amount will be $1,200 unless your adjusted gross income exceeded $150,000.
If you can’t cash or deposit the check: If you cannot cash or deposit the payment because it was issued to you and a deceased spouse, return the check as described in Topic I: Returning the Economic Impact Payment. After the IRS receives and processes your returned payment, your first Economic Impact Payment will be reversed to you and you can claim the Recovery Rebate Credit on your 2020 tax return, Form 1040 or Form 1040-SR.
The Bureau of the Fiscal Services (BFS) has cancelled outstanding Economic Impact Payment (EIP) checks issued to recipients who may not be eligible, including those who may be deceased. Recipients should still return these checks as described in Topic I: Returning the Economic Impact Payment instructions.
Update: With regard to eligible individuals who died in 2020, the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return if the first Economic Impact Payments were not issued. Please refer to the Instructions for Form 1040 and Form 1040-SR for more information.
For the second payment FAQ under Eligibility:
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.
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