To assist millions of low- to middle-income Americans dealing with the economic struggles of the coronavirus pandemic, the US govt distributed three federal stimulus verifications between 2020 and 2021. There was one $1,200 check in April 2020, one $600 check in December 2020, and one $1,400 check in March 2021.
Even so, not everybody attempted to claim the funds to which they were permitted. In some instances, stimulus checks went uncollected because of person who was entitled to them had died.
The Internal Revenue Service (IRS) has published regulations on what to do with stimulus checks if a member of the family has ended up dead. We’ll split that advice down into its basic definitions here.
Can You Assert a Family Member’s Stimulus Check Money if They Died?
Yes, even if a partner or member of the family died, you can claim the money they were owed. However, there are two critical things to keep in mind.
The first requirement is that this individual was qualified for the stimulus check while they were alive and was still alive whenever the stimulus check was distributed. And hence, anyone who recently died in 2020 wouldn’t have been qualified for the stimulus checks of 2021.
Another factor to take into account is that the money owed to the dead individual can only be attempted to claim once. It should be contended by the next of kin, but if one of their kids has already tried to apply for the money will be sent out, another of their children will be unable to have the check resent.
Who Is Entitled to the Money?
The decedent’s husband or wife or descendent can claim the coronavirus stimulus check on the decedent’s last tax return. By submitting the Recovery Rebate Credit on their joint federal tax return, a partner can claim the coronavirus stimulus check for the dead individual.
If you are going to file for someone who died last year, the IRS recommends accomplishing the Recovery Rebate Credit Worksheet to see if the person who died is qualified for the stimulus check.
If the decedent owes taxes in 2021, the quantity of their stimulus check will be reduced. The quantity of the healing rebate credit is matched with the quantity of the decedent’s tax refund. It’s worth noting that you can’t get the third stimulus check if the person died before 2021.
What Does the Irs Have to Say About Stimulus Checks for the Dead Ones?
The IRS has a FAQs section on trying to claim a Recovery Rebate Credit for stimulus checks not yet asserted, and one of them addresses the problem of dead people who were owing stimulus checks.
“An individual who died in 2021 or 2022 but did not receive the full amount of the third Economic Impact Payment may be eligible for the 2021 Recovery Rebate Credit if the individual met the qualifying conditions while alive,” according to the IRS comment.
“A person who died before January 1, 2021, does not meet the criteria for the 2021 Recovery Rebate Credit,” they add, simply stating the earlier point about the timing of death.
Stimulus Check: Do Babies Qualify?
The organization has also mentioned that newborn babies last year may be eligible for stimulus payments if their mom and dad file a tax return.
“The third Economic Impact Payment in 2021 did not include payments for these children because it was based on data from your 2020 or 2019 tax return,” the IRS says. “However, if they are eligible to receive completely reliant and you are eligible for the credit, you may claim a 2021 Recovery Rebate Credit for them.”
“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 keeps going.
Implications of Stimulus Check Taxation
Those who have already received their stimulus checks could indeed rest easy knowing that they will not be taxed in the coming years.
“No, the compensation is not income, and taxpayers will not owe tax on it,” says the agency. “The payout will not affect a taxpayer’s refund or the amount they end up owing when they file their 2020 or 2021 tax returns.”