Between 2020 and 2021, the US government distributed three federal stimulus verifications to help millions of low- and middle-income Americans cope with the economic hardships of the coronavirus pandemic. One $1,200 check was issued in April 2020, one $600 check was issued in December 2020, and one $1,400 check was issued in March 2021.
Even so, not everyone was able to claim the money that they were entitled to receive. Sometimes, stimulus checks went unclaimed because the person who was entitled to them had died.
The Internal Revenue Service (IRS) has published regulations on how stimulus checks should be handled in the event of a death in the family. Here, we’ll break down that piece of advice into its most basic definitions.
Can You Assert a Family Member’s Stimulus Check Money if They Died?
A partner or family member’s death doesn’t mean that you can’t collect on their debts. Two things should be kept in mind, however.
This individual must have been eligible for the stimulus check while they were alive and still be eligible for the stimulus check when the stimulus check was distributed. Therefore, anyone who died in 2020 would not have been eligible for the stimulus payments in 2021. ‘
Furthermore, the money owed to someone who has died can only be reclaimed once, so it is important to keep this in mind. Next of kin should argue for it, but if a child has already tried to apply for the money, another child will not be able to get the check to resent.
Is There Anyone Who Has a Right to the Money?
The coronavirus stimulus check can be claimed by the decedent’s spouse or children on the decedent’s final tax return. Coronavirus stimulus payments can be claimed by filing the Recovery Rebate Credit on a joint federal tax return.
The IRS recommends completing the Recovery Rebate Credit Worksheet to determine if the deceased was eligible for a stimulus check if you plan to file on their behalf.
Reduced stimulus payment if the decedent has unpaid taxes in 2021. The amount of the decedent’s tax refund is used to determine the amount of the healing rebate credit. Consider this: if the person died before 2021, you will not receive the third stimulus check.
What Does the IRS Have to Say About Stimulus Checks for the Dead Ones?
When it comes to claiming a Recovery Rebate Credit for stimulus checks that have not yet been claimed, the IRS has a section of frequently asked questions that addresses the issue of dead people owing stimulus checks.
When a person dies before receiving the full amount of the third Economic Impact Payment in 2021 or 2022, the IRS says that the person may be eligible for a 2021 Recovery Rebate Credit if the person was eligible while still alive.
A person’s death must have occurred on or after January 1, 2021, in order to be eligible for the 2021 Recovery Rebate Credit.
Stimulus Check: Do Babies Qualify?
Newborn babies born last year who have parents who filed tax returns may be eligible for stimulus payments as well, according to the organization.
Your 2020 or 2019 tax returns were used to calculate the third Economic Impact Payment in 2021, which did not include payments for these children, according to the IRS. For those who are completely reliant and are eligible for the credit, they can claim a 2021 Recovery Rebate Credit on your behalf.”
This keeps going: “If you are eligible, you may claim a 2021 Recovery Rebate Credit for the qualifying dependent on your 2021 tax return, which you will file in 2022,” it says.
Implications of Stimulus Check Taxation
They can rest easy knowing that they won’t be taxed in the future for those who have already received their stimulus checks
Taxpayers will not be required to pay taxes on the compensation, as the agency explains. Whether a taxpayer receives a refund or owes money in 2020 or 2021 will be unaffected by the payment.