I have a married client whose spouse passed away midyear in 2020. She received the second EIP check in the amount of $600, which to the best of my knowledge is correct. My question is - when inputting the information in the recovery rebate credit worksheet (line 19) the programming produces a credit of $600. How is this being handled?
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"She received the second EIP check in the amount of $600, which to the best of my knowledge is correct"
She would get hers and the spouse's. Getting the money isn't the issue. Reconciliation is the issue.
Perhaps it would help to review what is really happening:
The funds were paid out as Advanced payment against a projection. The projection used 2018 or 2019 tax returns. But 2020 is the Actuals. You use the 2020 return to reconcile what a person is entitled to, against what they got.
You might want to bookmark these links and read the IRS guidance.
One for each EIP.
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