Economic stimulus for the deceased

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EricJ
Posts: 79
Joined: Sun Jan 13, 2008 2:28 pm

Economic stimulus for the deceased

Post by EricJ »

I am completing an income tax return for an unmarried person who died in early 2020. He received a $1200 direct deposit for the first stimulus check. OK. After completing his 2020 income tax return using H&R Block software, it appears he is entitled to another $600. The H&R Block software does not seem to use date of death in its calculations. So I went to the 1040 form, and the 1040 instructions, which seem to support the H&R Block calculation. Am I reading this right?

The 1040 instructions state: "Generally, you are eligible to claim the recovery rebate credit if in 2020 you were a U.S. citizen or U.S. resident alien, weren't a dependent of another taxpayer, and have a valid social security number. This includes someone who died in 2020, if you are preparing a return for that person."

The worksheet for 1040 line 30 has no mention of deceased taxpayers. So it appears that I do not have to return the $1200, and the estate can expect another $600.
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nedsaid
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Re: Economic stimulus for the deceased

Post by nedsaid »

This is very interesting information. Previously I had seen that stimulus payments to deceased individuals were supposed to be returned to the US Treasury. Gosh, the dead have a bigger lobby than I would ever have dreamed!
A fool and his money are good for business.
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bhwabeck3533
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Location: Baldwin County, AL

Re: Economic stimulus for the deceased

Post by bhwabeck3533 »

EricJ wrote: Thu Feb 04, 2021 3:45 pm I am completing an income tax return for an unmarried person who died in early 2020. He received a $1200 direct deposit for the first stimulus check. OK. After completing his 2020 income tax return using H&R Block software, it appears he is entitled to another $600. The H&R Block software does not seem to use date of death in its calculations. So I went to the 1040 form, and the 1040 instructions, which seem to support the H&R Block calculation. Am I reading this right?
There's a bit of controversy amongst our volunteer community (AARP and RSVP) on this topic. Ethics or strict IRS interpretation?

https://www.aarp.org/money/taxes/info-2 ... -name.html
Big Dog
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Re: Economic stimulus for the deceased

Post by Big Dog »

EricJ wrote: Thu Feb 04, 2021 3:45 pm I am completing an income tax return for an unmarried person who died in early 2020. He received a $1200 direct deposit for the first stimulus check. OK. After completing his 2020 income tax return using H&R Block software, it appears he is entitled to another $600. The H&R Block software does not seem to use date of death in its calculations. So I went to the 1040 form, and the 1040 instructions, which seem to support the H&R Block calculation. Am I reading this right?

The 1040 instructions state: "Generally, you are eligible to claim the recovery rebate credit if in 2020 you were a U.S. citizen or U.S. resident alien, weren't a dependent of another taxpayer, and have a valid social security number. This includes someone who died in 2020, if you are preparing a return for that person."

The worksheet for 1040 line 30 has no mention of deceased taxpayers. So it appears that I do not have to return the $1200, and the estate can expect another $600.
My step-dad passed in October and I'm preparing his Final return on TurboTax and it too, adds in $600 for the second stimulus payment, even tho I clearly added his date of death.
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EricJ
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Joined: Sun Jan 13, 2008 2:28 pm

Re: Economic stimulus for the deceased

Post by EricJ »

bhwabeck3533 wrote: Sun Feb 07, 2021 11:15 am
There's a bit of controversy amongst our volunteer community (AARP and RSVP) on this topic. Ethics or strict IRS interpretation?

https://www.aarp.org/money/taxes/info-2 ... -name.html
Thank you for that link.
To clarify my interest, I am helping the estate administrator. Neither I nor the administrator stand to inherit anything. We just want to be accurate in paying all the taxes that are due and not any more. We were very surprised at the calculations.
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EricJ
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Re: Economic stimulus for the deceased

Post by EricJ »

Big Dog wrote: Sun Feb 07, 2021 12:12 pm My step-dad passed in October and I'm preparing his Final return on TurboTax and it too, adds in $600 for the second stimulus payment, even tho I clearly added his date of death.
Thank you for sharing your experience with a different tax software package. That boosts my confidence that I haven't made a mistake.
Big Dog
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Re: Economic stimulus for the deceased

Post by Big Dog »

EricJ wrote: Sun Feb 07, 2021 10:38 pm
Big Dog wrote: Sun Feb 07, 2021 12:12 pm My step-dad passed in October and I'm preparing his Final return on TurboTax and it too, adds in $600 for the second stimulus payment, even tho I clearly added his date of death.
Thank you for sharing your experience with a different tax software package. That boosts my confidence that I haven't made a mistake.
It does seem mighty strange, so I think I'm gonna sit on his Final return until at least early April just in case TurboTax sends out an update changing their program's handling of this issue.
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bhwabeck3533
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Re: Economic stimulus for the deceased

Post by bhwabeck3533 »

Big Dog wrote: Sun Feb 07, 2021 11:14 pm
EricJ wrote: Sun Feb 07, 2021 10:38 pm
Big Dog wrote: Sun Feb 07, 2021 12:12 pm My step-dad passed in October and I'm preparing his Final return on TurboTax and it too, adds in $600 for the second stimulus payment, even tho I clearly added his date of death.
Thank you for sharing your experience with a different tax software package. That boosts my confidence that I haven't made a mistake.
It does seem mighty strange, so I think I'm gonna sit on his Final return until at least early April just in case TurboTax sends out an update changing their program's handling of this issue.
FWIW, we (RSVP Volunteer Tax Counselors) use TaxSlayer as our software and it treats the stimulus the same as you have described for TurboTax regarding taxpayers who died in 2020.
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ipdiddly
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Location: MA

Re: Economic stimulus for the deceased

Post by ipdiddly »

The goal is to stimulate the dead back to life so they can continue to vote.

My neighbor died in 2019 and received a check in 2020. I returned it to the IRS. (I was trustee for her estate.)
NotWhoYouThink
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Re: Economic stimulus for the deceased

Post by NotWhoYouThink »

This was on the IRS website. We'll probably follow the instructions and claim the payment on my mother's return. If we don't, somebody somewhere will probably notice our "error" and spend time and money correcting it.
Will a deceased individual receive the payment? (added January 5, 2021)

Questions and Answers about the Second Economic Impact Payment | Interna...
IRS and Treasury Now Delivering Second Round of Payments Most people will get their payments automatically.






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.
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