When a taxpayer dies in 2020 before stimulus checks are issued the IRS says they must be sent back. When this situation happens, Lacerte still tries to give them a Recovery Rebate Credit on line 30 of the 1040 form. To complicate things, Lacerte's help screen says that this payment is valid even though the IRS says NO WAY.
Appreciate comments and who's right, Lacerte or the IRS?
Dennis McFerran
RTRP, San Jose, CA
It's for all of 2020.
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.
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