Stimulus Check For Deceased Question

[Drake3287]

I realize no one will have a for sure answer on this but here's my question. My mother died in January of this year and Social Security was obviously notified. I also completed my mother's 2019 taxes a month ago which also indenified her as being deceased and with me having legal authority over her estate.

Sure enough her checking account which is now is my name and SS number (BofA automatically deletes deceased customers once notified) has a $1,200. auto deposit from the IRS for her stimulus check.

Any idea if I'm able to keep this money and simply use it towards future estate costs? One thought I had was that because she was technically alive in 2020 that maybe she still qualified for it. And of course the IRS hasn't come out with any updates on how to handle these death related issues.

 

[REWahoo]

This may shed some light on the issue: The IRS is sending $1,200 stimulus checks to dead people

In Florida, tax preparer Adam Markowitz has also seen examples among his clientele of the IRS sending stimulus money to dead people this week.

What’s more, it appears the survivors can keep the money, Markowitz and other tax experts told MarketWatch.

 

[SecondCor521]

She qualified for the stimulus payment by virtue of filing a 2019 tax return with an SSN and a low enough AGI (probably under $75K). Nothing else, including the fact that she has since passed away, matters.

The stimulus payment money should become part of her estate and should follow whatever the applicable directions are in her will and state law.

If you are required to or elect to file a 2020 tax return for her (probably depends on if she had any income in 2020), you would again indicate that she is deceased, and again, it wouldn't matter. As long as her 2020 AGI was low enough, she would qualify for the $1200 tax credit. So you'll put down that she qualified for the $1200 tax credit, and that she had already received the advance payment of $1200, which you'd subtract, and then her return would show that she was entitled to no additional credit.

 

[Drake3287]

Thanks for the comments and yes I've read that web site link already. Like was mentioned in the other reply, I'm guessing that because she was alive in 2020 plus I filed her 2019 taxes I'll probably be alright.

To me it's simply the fact that as screwed up as our IRS system is, I run the risk of being called on this $1,200. perhaps years down the road. And of course then my mother's estate will be closed (hopefully!) and I'll have to repay the money and of course try to recoup my siblings share.

You would think giving away free money would be easy!

 

[BeachOrCity]

She qualifies based on you having to file a 2020 tax return for her.

It’s not talked about much but the check is actually an advance butnifnyiu make too much in 22 they don’t reverse it.
Conversely if you made too much last year but don’t make enough this year you get it at tax time

 

[Drake3287]

She qualifies based on you having to file a 2020 tax return for her.

It’s not talked about much but the check is actually an advance butnifnyiu make too much in 22 they don’t reverse it.
Conversely if you made too much last year but don’t make enough this year you get it at tax time

Thanks, although I'm not sure about having to do 2020 taxes for her. The only income she officially had in 2020 is her Jan. SS check. If that's all it takes to keep the $1,200. check I'll certainly do it. Of course the separate "Estate" account will still have to file 2020 taxes.

 

[SecondCor521]

Thanks, although I'm not sure about having to do 2020 taxes for her. The only income she officially had in 2020 is her Jan. SS check. If that's all it takes to keep the $1,200. check I'll certainly do it. Of course the separate "Estate" account will still have to file 2020 taxes.

If her only income was her January SS check, then she would not be required to file a 2020 return. You could still file if, for example, she had income taxes withheld from her SS payment that you wanted to get back, or if any of the other things in Chart C in the Form 1040 instructions applied to her.

You can keep the stimulus payment even if you don't file a 2020 return on her behalf.

I believe her estate would only be required to file an estate tax return if her estate earned more than $600. The $1200 stimulus payment is not income, so would not count towards that $600 minimum. Estate income would be things like dividends or interest paid into estate accounts.