$1200 or $2400?

[Justataxguy]

Client's spouse passed away in 2019, filed final joint return. They have a $2400 stimulus deposit pending. They want to know if they will have to pay back the deceased spouse's share. Thoughts?

[ATSMAN]

Filed MFJ they get $2400 and keep $2400. The payment is calculated first on 2019 AGI if that is not available then 2018 AGI.

[taxmandan]

Since this is an advance on a credit for the 2020 tax return it will be reconciled there, and the spouse won't be on it of course. I haven't heard whether an over payment has to be paid back. Congress' intent was probably not but until guidance early next year we won't know the consequences to the clients. (unless you want to wade through the statute and try to figure out what it says for this credit).

[Burke]

If they filed a 2019 MFJ return, and marked one of the parties as deceased (with or without a 1310), IRS should be aware of it. Likewise, a single person who died in 2019 for whom a return has been filed. If a 2019 return has NOT been filed and they are not SS recipients, I don't know how they would know. So Treasury may use the 2018 return and issue it based on that filing status.

[Rapid Robert]

would you expect a *SINGLE* person who died in 2019 to receive a $1,200 stimulus check in 2020? .

I would have to read the letter of the law. If the law says payment is based on 2019 return and does not explicitly exclude decedents, then yes.

Does anyone remember if this happened with the Making Work Pay credit from about ten years ago or how it was handled then?

[Scarecrow]

I read that if they get too much of a stimulus check when it is time to reconcile the money with their 2020 tax return, any excess amount received does not have to be repaid. Thus, you might be entitled to get an extra tax credit on the 2020 tax return based on a drop in income in 2020, but if they send you too much money, such as a deceased spouse, you don't have to repay it.

[Rapid Robert]

I would have to read the letter of the law. If the law says payment is based on 2019 return and does not explicitly exclude decedents, then yes.

Does anyone remember if this happened with the Making Work Pay credit from about ten years ago or how it was handled then?

Based on subsequent news articles, it appears I was right: there is nothing unlawful about the government making an EIP to a decedent.

And yes, the same thing did happen under ARRA ten years ago, but the dollar amount was much smaller. So it's not like it should have been a surprise, although maybe all the people who actually knew how things worked have left the agency and no one comparable has taken their place.

[Toobusy]

I read/heard the same info as Scarecrow - ".....if you are overpaid that you would not have to pay it back."!!