Several Americans received three stimulus checks during the epidemic, but family members wondered whether their deceased loved ones were eligible for the same benefits.
The first check, valued at $1,200, was paid out in April 2020. A further $600 was delivered in December of the following year. The last check, totaling $1,400, was issued in March 2021.
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Despite millions of dollars being paid out, many payouts remained unclaimed. It’s possible that this occurred because someone entitled to a cheque passed away.
Because this is a typical occurrence, the Internal Revenue Service has guided what to do in this case.
How to manage a dead family member’s stimulus check
You may be eligible to receive a stimulus payment from a dead family member. To be eligible for the stimulus check in the first place, the individual must have been qualified for it to start with.
If a person expired in 2020, they would not be eligible for check-in in 2021, and vice versa.
It is only possible to claim their money once. The money should be claimed by the next of kin, but it will not be delivered to them if their kid applies for it.
What is the strategy for asserting a dead person’s stimulus check?
The Internal Revenue Service addresses this in their Recovery Rebate Credit FAQ area. If a person passes away in 2021 or 2022 and does not get the benefit check for which they were qualified, they are eligible for the recovery refund.
They must have satisfied the qualifying standards when they were alive to be considered. If someone passes away before the first day of January 2021, they will not be eligible for the recovery rebate credit.
My Dead Relative Got a Stimulus Check. Can We Keep It?
The majority of individuals would be delighted to receive an unexpected windfall of a few hundred dollars in their mailbox or bank account unless, of course, the money was intended for a loved one who had passed away.
Not only is the money a terrible reminder of a loved one’s absence, but it also prompts a slew of difficult issues, the most difficult of which is: what should I do with it? Should I spend it or save it? Do you want to send it back? And, if so, in what way?
That was the predicament in which Americans found themselves in 2020 after receiving $1,200 in stimulus payments in the names of dead mates and other relatives, either by paper check or direct deposit.
According to official records, the national government had made stimulus payments to almost 1.1 million deceased persons totaling roughly $1.4 billion. IRS has instructed citizens to return the funds they have received.
However, the restrictions have altered for the second round of stimulus checks, which have a maximum value of $600 and the $1,400 checks that are now being given.
Only beneficiaries who died in 2019 or before are required to return the money, according to the law that approved the second stimulus payment to qualified recipients.
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However, according to the law that approved the third wave of stimulus payments, people who died before the end of 2020 are not eligible to receive a stimulus check. Someone who died before 2021 was still eligible.
The Internal Revenue Service is conducting a review to ensure that no checks be sent to those who have died when they are not eligible to receive one.
If you received a payment on behalf of a dead individual who was not entitled to it, you are required to repay the money. In addition, you must return a canceled check.
A stimulus payment issued to someone who expired before receiving the payment should be returned to the Internal Revenue Service (IRS) by following the guidelines on the IRS website on reimbursements.
The payment must be returned in its entirety unless it was given to joint filers and one of the spouses had not expired before receipt of the payment, in which case you need to return the amount of the payment made on the decedent’s behalf.”
How do you return a stimulus payment?
The Internal Revenue Service (IRS) gave detailed instructions for returning an economic impact payment (EIP) that was made to a deceased individual.
If the payment was a document check and it hasn’t been cashed:
- On the reverse of the check, write the word “Void.”
- Send the canceled Treasury check as soon as possible to the IRS office that serves your state’s taxing jurisdiction.
- The check must not be pinned, bent, or paper clip.
- Remember to include a message explaining why you’re returning the cheque.
If the payment was a paper check and you have cashed it, or if the expenditure was a direct deposit:
- Send a personal check, money order, or another form of payment to the proper IRS facility in your state as soon as possible.
- The recipient’s taxpayer identification number (Social Security number or individual taxpayer identification number) should be written on the check or money order made payable to “U.S. Treasury,” followed by the words “2020EIP” and their taxpayer identification number.
- Explain briefly why the EIP was returned in the body of the letter.