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Stimulus Payment and taxpayer died after 1st stimulus

HawthorneCPA
Level 1

I have a taxpayer who received the first stimulus payment but not enough as due a credit for the first payment.  Taxpayer died in October before the second stimulus payment and did not receive a second stimulus payment.  If I put a -1 in the 2nd stimulus it calculates another $600 credit and there is no way to say she was not suppose to receive it.  Should I just put the $600 for the 2nd payment even though they never received it so that it will put the $155 amount they do owe on the form even though the worksheet will be incorrect.  

I have a lot of clients this happened to is Lacerte going to start looking at Date of Death so we don't have a wrong worksheet.

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sjrcpa
Level 15

Alive in 2020 = entitled to the credit, subject to the income limits.


ex-AllStar

View solution in original post

2 Replies 2
sjrcpa
Level 15

Alive in 2020 = entitled to the credit, subject to the income limits.


ex-AllStar

View solution in original post

qbteachmt
Level 15

"and there is no way to say she was not suppose to receive it"

Here's a better way to understand all of this:

The payments in 2020 were Advances against a Projection; they used 2018 or 2019 tax returns. You are working on 2020 taxes, and this is the Actual Data that is used to reconcile what you were entitled to against any payments already received.

She was entitled. Date of death in 2020 has no bearing on anything.

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