Recovery Rebate Credit Worksheet

[lbones]

I have a married client whose spouse passed away midyear in 2020.  She received the second EIP check in the amount of $600, which to the best of my knowledge is correct.  My question is - when inputting the information in the recovery rebate credit worksheet (line 19) the programming produces a credit of $600.  How is this being handled? 

[sjrcpa · Accepted solution]

As correct. Spouse deceased in 2020 is entitled to the credit.

[lbones]

My understanding is that if they passed away prior to the 2nd payment, they were not entitled.  The spouse passed away in June, second payment was received in late December.  That is incorrect?

[BobKamman]

Yes, that is incorrect.  IRS shared your misunderstanding last summer, but since then has  figured out what the law says.  

[lbones]

Thanks for the assist!!

[lbones]

Big help thank you for clearing this up for me.

[qbteachmt]

"She received the second EIP check in the amount of $600, which to the best of my knowledge is correct"

She would get hers and the spouse's. Getting the money isn't the issue. Reconciliation is the issue.

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.

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


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.