Economic stimulus check and taxpayer death. Program is not picking up date of death. How do I fix it?

Forum|Forum|5 years ago
February 21, 2021
3 replies
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Lacerte Tax

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qbteachmt

Level 15

If the person was alive Jan 1, 2020, or died that day or later, they are entitled to the full amounts.

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.

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

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.

Don't yell at us; we're volunteers

IRonMaN

Level 15

Even dead people qualify for the stimulus as long as they were alive on 1/1/20.

Slava Ukraini!

K

klhhAuthor

Level 4

I don't think so. If the taxpayer died before the date the second payment was issued or before the first, then the payment is supposed to be returned.

IRonMaN

Level 15

Then you are thinking incorrectly. It is a credit on a 2020 tax return - not a payment on a certain day of the year.

Slava Ukraini!

IRonMaN

Level 15

Place $1200 and $600 in the boxes asking for how much they received. Then tell your client's family to stop by and visit one of us so that we can prepare the return correctly.

Slava Ukraini!

K

klhhAuthor

Level 4

Wow! I know this person and what he died from.It was not covid-19.

qbteachmt

Level 15

The tax preparation program is doing the calculation properly; it doesn't "pick up" the date of death, because that date is meaningless for the qualification of either EIP. That isn't how the CARES Act reads.

Don't yell at us; we're volunteers

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