Rebates for deceased taxpayer

[lenboush]

This may seem like a strange question but I have not seen the answer anywhere. I have two separate returns with deceased taxpayers. One was a single person who was not required to file but did have over $3000 in Social Security benefits. Is there any point and going ahead and filing for her? Only if she will get the rebate. Hence my question.

The other return was a married couple where the taxpayer died leaving a widow. They were required to file but the wife asked me if she would get $600 or $1200 as a rebate. I had to tell her that I did not know.

Any feedback will be appreciated!

[Gretel]

see link

http://www.thetaxbook.com/forums/showthread.php?t=7496

[taxea]

Rebates for deceased taxpayer

Honestly...think about it...the IRS has a return with DECEASED written across the top...what do you think? taxea

[Gretel]

Honestly...think about it...the IRS has a return with DECEASED written across the top...what do you think? taxea

I think logic and IRS don't cross the line. One should think they will disqualify but who knows what will happen. I am very curious to hear about this once we have proof, one way or the other.

[Bees Knees]

IRS has to follow the rules like the rest of us. The code says the rebates are based on the 2007 return as if the refundable credit for 2008 were to apply to 2007. Nothing in the refundable credit rules state the taxpayer has to live to the end of the year to qualify for the credit. Therefore, a decedent can receive the rebate.

[Black Bart]

In Re: Peachie's "Stimulus twist" question

IRS has to follow the rules like the rest of us. The code says the rebates are based on the 2007 return as if the refundable credit for 2008 were to apply to 2007. Nothing in the refundable credit rules state the taxpayer has to live to the end of the year to qualify for the credit. Therefore, a decedent can receive the rebate.

...............................

[JohnH]

Logical

It makes sense to me. If I buy a refrigerator and there's a rebate, my estate is still entitled to receive it even if I die before competing the paperwork Why wouldn't it be the same with a tax rebate?

Of course, there is one big difference. I can expect the refirgerator to actually work, wheras the government I paid for can't really be expected to be as reliable.

[bertrans]

IRS has to follow the rules like the rest of us. The code says the rebates are based on the 2007 return as if the refundable credit for 2008 were to apply to 2007. Nothing in the refundable credit rules state the taxpayer has to live to the end of the year to qualify for the credit. Therefore, a decedent can receive the rebate.

Absolutely - and tersely and well put.

The governing consideration, true for any credit, is: was the TP alive during the tax year?

I suppose a staute could include a specific provision limiting a credit to 'people who were alive on 31 December of the tax year' - but they certainly haven't done that for THIS credit.

[taxmama]

Deceased Refund

No need to speculate. IRS answers that question on their FAQs

http://www.irs.gov/newsroom/article/0,,id=179181,00.html

Q. If an individual dies, what happens to his or her direct deposit or stimulus check?

A. Stimulus payments will be issued in the name of the individual eligible for payment on a filed 2007 income tax return or to the account designated by the individual on that return. Any issues or concerns involving a decedent's filed return or the related stimulus payment should be addressed by the legal representative of the decedent's estate. [New 2/27/08]

Best wishes

TaxMama

[thomtax]

Thanks for the link.

LT

[lenboush]

THANKS TaxMama!

It's really good to see you on this board and a BIG THANKS for the personal e-mail on the subject!

[Bees Knees]

Welcome to the board TaxMama.

Been lurking for a year. Finally decided to join in...