Deceased taxpayer, EIP and RRC

[ritastone001]

Am I understanding this correctly?  A TP who died before receiving EIP #1 was not eligible for the EIP. (His widow received the amount and then was withdrawn from their account by the IRS). EIP#2 the widow received the $600 for herself only.  Now, according to the instructions for Form 1040 if you were a US citizen...., have a valid social security number AND have died during the year, you qualify for the Recovery Rebate Credit.    So rules for the EIP's and for the RRC may be different????   

Just tell me to stop reading!

[BobKamman]

IRS was making up rules for the EIP as they went along.  2020 decedents were always eligible for it, just like prison inmates and just like they did with "stimulus" payments back in 2008.  Just remember the saying:  "We're from the government, and we want you to share our confusion."

[Just-Lisa-Now-]

If they died before 2020, they were not entitled to it.

[ritastone001]

Nothing to do with 2019. He died in year 2020 but before receiving the EIP. According to the IRS that payment had to be returned. It was. But now I believe his widow is entitled to the full amount.  

[Just-Lisa-Now- · Accepted solution]

Filing a joint return for 2020, theyre both entitled to the RRC.

[karichar]

To clarify,  individuals who passed away in 2020 are supposed to return the first EIP if moneywas received, but are eligible for the RRC in the second round of stimulus. Frustrating there is very little guidance on this. 

[BobKamman]

IRS has still not changed its FAQ for 2020 decedents, but its online guidance is on the same level as the Tooth Fairy.  People who died in 2020 are entitled to $1,200 and $600, if they otherwise qualified.  Survivors who were suckered into returning either payment, can get it through the Recovery Rebate Credit on the final 2020 return. 

[wardpallotta]

My client was a widow who died 3/22/20 and did not receive either payment. She would have been eligible by income. While looking for the box to check to prevent an $1800 refund, I found this discussion. Is her final return eligible for this money? If not, where's the box?

[sjrcpa]

Yes she's eligible.