Level 3

Question

stimulus recovery dead person died 3/17/20

Forum|Forum|5 years ago
May 8, 2021
3 replies
0 views

I have a single person (90 year old) who died on 3/17/2020. I am doing return. Is ther person entitled to stimulus recovery credit $1,800 for stimulus 1-$1200 and stimulus 2 $600?

The person/estate did not get any stimulus checks in mail or direct deposits.

John

ProSeries Basic

This topic has been closed for replies.

sjrcpa

Level 15

Alive in 2020 and below the income limits equals entitled to the Recovery Rebate Credit.

The more I know the more I don’t know.

A

Anglis

Level 4

Do not recommend, I have an elderly client that had to pay back the stimulus money due to death of spouse. IRS sent letter requesting return.

sjrcpa

Level 15

@Anglis What year did the spouse die?

The more I know the more I don’t know.

IRonMaN

Level 15

I recommend. If they were alive for 1 day in 2020, they are entitled to the credit. Don't confuse the confusion relating to the mailing out of checks in 2020 with the actual credit allowed when filing the return.

Slava Ukraini!

A

Anglis

Level 4

I understand what you are saying, but we have a few clients that returns on death are being held up in system regarding refunds. I am guessing the IRS is looking at those stimulus amounts on return and making decisions regarding the receiving of this credit.

I will keep you posted if they get it. I have already heard that some did not get due to death of spouse.

qbteachmt

Level 15

"I have already heard that some did not get due to death of spouse."

You need to consider which Year they died.

Perhaps it would help to review what is really happening for EIP “stimulus” funds: The funds were paid out as Advanced payment against a projection. The first two payouts were projected based on 2018 or 2019 tax returns, but the eligibility is part of tax year 2020 as Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.

If the person is not a dependent in 2020, then they would be eligible for consideration as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent." You must correctly address whether they Can be Claimed as a dependent on someone else’s tax return.

The third payout which started in Jan 2021, has different eligibility rules as to dependents and this payout is a projection, using 2019 or 2020 tax returns, then reconciled against Actuals on the 2021 tax return.

You might want to bookmark these links and read the IRS guidance.

Interactive wizards portal includes one for determining dependency:

https://www.irs.gov/help/ita

And:

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

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

https://www.irs.gov/newsroom/irs-is-issuing-third-round-of-economic-impact-payments

One for each of the three EIP “stimulus” payments.

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