Stimulus money for a deceased tax payer

[Brainstrom]

My client is decease but needs to file a final tax return. The program is trying to give the deceased stimulus money. How do I get around that. Does a decease tax return need to be Paper filed or can I attach Form 1310 and a POA.

Thanks in advance

[Just-Lisa-Now-]

If there were alive in 2020, they are entitled to the RRC.

[Brainstrom]

Lisa: DOD was 7/18/20. So she would get the 1200.00 for 2020 but not the 600.00 that we received in 2021?

[sjrcpa]

Entitled to full credit, subject to income limits, less amount already received.

[qbteachmt]

"So she would get the 1200.00 for 2020 but not the 600.00 that we received in 2021?"

There is no Splitting of the tax year. Alive on Jan 1, 2020 = qualifies for whatever was made available, given the income limitations, SSN requirement, etc.

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.

If the person is not a dependent in 2020, then they would be entitled to the payment/credit as individual filers. That doesn't mean "not being claimed." It means "no longer qualifies as a dependent."

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

Interactive wizards portal 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

One for each EIP.

[Just-Lisa-Now-]

Alive even one day in 2020, entitled to the full RRC for 2020.