Death and stimulas

[TAXMAN]

I would like to have a good worksheet for how to handle death and the 2 stimulus payments. Like died b4 certain date keep died after date give back and how to handle. Anyone seen a good explanation of what to do?

[Lion EA]

I think it has to do with being alive for any amount of time during 2020, then still qualifying for 2020 credit. Does anyone have anything specific re DOD after 31 December 2019?

[JoeFreitag]

Congress ruled that dead people qualify for the stimulus.

[Lee B]

Boy, we have we have a lot of opinions about this question, if all else fails go to the IRS FAQ page

"Q A5. Does someone who died qualify for the payment? Why did the IRS send payments to deceased individuals? (updated November 10, 2020)

 

A5. No, a payment made to someone who died before receiving the payment should be returned to the IRS by following the instructions in Topic I: Returning the Economic Impact Payment.

Joint filers with a deceased spouse: For payments made to joint filers with a deceased spouse who died before receiving the payment, return the decedent’s portion of the payment. This amount will be $1,200 unless your adjusted gross income exceeded $150,000"

 

 

"Will a deceased individual receive the payment? (added January 5, 2021)

 

A payment won’t be issued to someone who has died before January 1, 2020. If you filed a joint return in 2019 and your spouse died before January 1, 2020, you won’t receive a $600 payment for your deceased spouse, but you’ll still be issued up to $600 for you and $600 for any qualifying children, if all other eligibility criteria are met. 

Regarding eligible individuals who died in 2020, the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return.  Please refer to the instructions for the 2020 Form 1040 for more information."

[Gail in Virginia]

5 minutes ago, cbslee said:

Boy, we have we have a lot of opinions about this question, if all else fails go to the IRS FAQ page

"Will a deceased individual receive the payment? (added January 5, 2021)

 

A payment won’t be issued to someone who has died before January 1, 2020. If you filed a joint return in 2019 and your spouse died before January 1, 2020, you won’t receive a $600 payment for your deceased spouse, but you’ll still be issued up to $600 for you and $600 for any qualifying children, if all other eligibility criteria are met. 

Regarding eligible individuals who died in 2020, the Recovery Rebate Credit may be claimed on line 30 of their 2020 tax return.  Please refer to the instructions for the 2020 Form 1040 for more information."

That's what they say - but I bet most of have instances of someone deceased before 1/1/20 receiving at least the first payment.  My mother died 2/1/18, and received the first check payable in HER NAME DEC"D.  We must not have notified them in time.

[EricF]

Cbslee,

I was going to post the same.  Thanks.  Death was not addressed in the first stimulus payment law, but it was for the second.

The Q&A 5 you posted relates to the first payment, and the IRS specified returning it if the taxpayer died before receiving the payment.

The second Q&A is relates to the second payment, and repeats what Congress specified.

[Abby Normal]

Take the money and run, is my philosophy. It's too small of an amount for the IRS to be concerned about, especially as slammed as they are now.