Form 1040 v 1041 for deceased taxpayer

[StellaN]

Taxpayer died Dec 26, 2019, and had a revocable trust.  There was no income after his date of death.  Can I file Form 1040 for 2019?  I understand I must file Form 1041 for 2020 if the now irrevocable trust has income.

[IRonMaN · Accepted solution]

If he had enough income to file a 1040, yes.

[BobKamman]

It will be interesting to see if his heirs receive a $1,200 EIP.  My guess is that he needed to live another week.  

[StellaN]

I guess I could wait a few weeks before filing to see what happens.

[sjrcpa]

I hadn't thought about that situation, until now.

[Terry53029]

I had read that The stimulus checks are technically an advance of a special tax credit for the 2020 tax year, so if someone passes in 2019 there will be no advance credit.

[BobKamman]

@Terry53029 

You might assume that, and you might be wrong.

The 2020 Section 6428 “Impact” payments are very similar to the 2008 Section 6428 “stimulus payments. Back then, the payments were technically a credit on 2008 returns, but based on data from 2007 returns. IRS issued an FAQ about payments to decedents. This is what it said:

Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

A. Stimulus payments will be issued in the name of the individual eligible for payment on a filed 2007 income tax return or to the account designated by the individual on that return. This includes situations where a person dies after filing a return or where the final 2007 income tax return was filed by a personal representative or surviving spouse. Any issues or concerns involving a decedent's filed return or the related stimulus payment should be addressed by the legal representative of the decedent's estate. See Publication 559 for more useful information for survivors and personal representatives. [Updated 3/17/08]

Here’s a link – I’m not sure why the only surviving version I could find is on their Korean language website (the text is in English).

https://www.irs.gov/ko/newsroom/economic-stimulus-payment-faqs-basic-eligibility