The passing of a loved one is an incredibly difficult and emotionally taxing experience. Amidst the grief and the myriad of arrangements that follow, families are often faced with a complex web of financial and legal matters. One such challenge, particularly prevalent during recent years, has been understanding how stimulus checks – officially known as Economic Impact Payments (EIPs) or the Recovery Rebate Credit (RRC) – are handled when a spouse has died.
Whether a payment arrived after their passing, was never received, or you’re simply trying to understand your eligibility, navigating the IRS rules for deceased individuals can feel overwhelming. This comprehensive guide aims to clarify the process, providing you with the necessary information and steps to claim a stimulus check for a deceased spouse, or to understand when one must be returned.
Understanding the Stimulus Checks and Eligibility Basics
Before diving into the specifics for deceased individuals, it’s crucial to understand the fundamental nature of the stimulus checks:
- Economic Impact Payments (EIPs): These were advance payments of a tax credit, specifically the Recovery Rebate Credit. There were three rounds:
- EIP 1 (CARES Act): Up to $1,200 per eligible adult, plus $500 per qualifying child. Based primarily on 2019 tax information.
- EIP 2 (CAA 2021): Up to $600 per eligible adult, plus $600 per qualifying child. Based primarily on 2019 or 2020 tax information.
- EIP 3 (American Rescue Plan): Up to $1,400 per eligible adult, plus $1,400 per qualifying dependent. Based primarily on 2019 or 2020 tax information, or 2021 if filed early.
- Recovery Rebate Credit (RRC): This is the tax credit itself. If you didn’t receive an EIP, or received less than the full amount you were eligible for, you could claim the RRC when you filed your tax return for the applicable year (2020 for EIP 1 & 2, and 2021 for EIP 3).
- Eligibility: Generally, eligibility for each payment was based on:
- Having a valid Social Security number.
- Not being claimed as a dependent on someone else’s tax return.
- Meeting specific Adjusted Gross Income (AGI) thresholds.
- Crucially, eligibility was tied to the tax year the payment covered. For instance, EIPs 1 & 2 were advance payments of the 2020 RRC, and EIP 3 was an advance payment of the 2021 RRC.
The IRS Stance on Deceased Individuals and Stimulus Checks
This is where much of the confusion arises. The IRS has been clear: a person who died before the beginning of the tax year for which the stimulus payment was issued is generally not eligible for the payment.
However, if an individual was alive for any part of the tax year the payment was based on, they might have been eligible. This distinction is vital and dictates how you should proceed.
Scenario 1: Spouse Died Before the Applicable Tax Year
Example: Your spouse passed away in 2019. The first stimulus check (EIP 1) was an advance payment of the 2020 Recovery Rebate Credit.
Guidance: In this situation, the deceased spouse is not eligible for the stimulus checks. The payments are based on the tax year for which they are intended (e.g., 2020 for EIP 1 and 2, 2021 for EIP 3). If your spouse was not alive for any part of that tax year, they cannot be eligible for the credit or its advance payment.
If a payment was mistakenly sent in their name (perhaps based on older tax records), it must be returned to the IRS. We’ll cover how to do this later.
Scenario 2: Spouse Died During the Applicable Tax Year
Example: Your spouse passed away in April 2020. They were alive for part of the 2020 tax year, which is the basis for EIP 1 and EIP 2. Or, your spouse passed away in July 2021, meaning they were alive for part of the 2021 tax year, the basis for EIP 3.
Guidance: This is the most common and complex scenario. If your spouse was alive for any portion of the tax year the stimulus check was based on, and met all other eligibility criteria (SSN, AGI, not a dependent), they may have been eligible for the payment.
- Who can claim it? The stimulus check, if eligible, becomes an asset of the deceased person’s estate. It can be claimed by the surviving spouse (if filing jointly or as a qualified widow/widower) or by the executor or administrator of the deceased’s estate.
- How to claim it: Since the stimulus checks were advance payments of the Recovery Rebate Credit, the only way to claim a payment for a deceased individual (who was eligible) is by filing a final tax return for the deceased individual for the year the payment applies to and claiming the Recovery Rebate Credit.
Scenario 3: Spouse Died After Receiving an Eligible Stimulus Payment
Example: Your spouse received their EIP 1 payment in May 2020 and then passed away in June 2020.
Guidance: If your spouse received an eligible stimulus payment before they died, and they met all eligibility criteria at the time the payment was issued, there is no action required regarding the stimulus payment itself. The funds are considered part of their estate, just like any other asset they possessed at the time of their death.
Step-by-Step Guide to Claiming a Stimulus Check for a Deceased Spouse (When Eligible)
If your deceased spouse was eligible for a stimulus check (i.e., they were alive for some portion of the applicable tax year and met other criteria), here’s how to claim it:
Determine Eligibility:
- Tax Year: Confirm your spouse was alive for at least part of the tax year the payment was based on (2020 for EIP 1 & 2, 2021 for EIP 3).
- Other Criteria: Verify they had a valid SSN, were not claimed as a dependent, and their AGI met the thresholds for the relevant year. You can find AGI requirements on IRS.gov.
File a Final Tax Return for the Deceased:
- You will need to file a Form 1040 (U.S. Individual Income Tax Return) for the year the stimulus payment applies to (e.g., a 2020 tax return for EIP 1 & 2, or a 2021 tax return for EIP 3).
- Mark the return "Deceased," and include the date of death next to the deceased’s name at the top of the return.
Claim the Recovery Rebate Credit (RRC):
- On the Form 1040 for the applicable year, locate the line for the Recovery Rebate Credit. For example, on the 2020 Form 1040, it was Line 30. On the 2021 Form 1040, it was Line 30.
- Calculate the amount of the RRC your deceased spouse (or the joint filers) were eligible for, subtract any EIPs they already received, and enter the difference on this line. The IRS provides worksheets in the Form 1040 instructions to help calculate this.
Complete Form 1310 (Statement of Person Claiming Refund Due a Deceased Taxpayer):
- When it’s needed: You generally need to attach Form 1310 if you are claiming a refund (which the RRC acts as) on behalf of a deceased person and you are not a surviving spouse filing a joint return, or you are a personal representative filing a return for the deceased.
- When it’s NOT needed: You typically do not need to file Form 1310 if:
- You are a surviving spouse filing a joint return with the deceased taxpayer.
- You are a court-appointed or certified personal representative (executor/administrator) and a copy of the court certificate showing your appointment is attached to the return.
- Purpose: Form 1310 tells the IRS who is authorized to receive the refund. You’ll need to indicate your relationship to the deceased and whether you are the executor/administrator.
Provide Necessary Documentation:
- Death Certificate: Always include a copy of the death certificate with the tax return.
- Letters of Testamentary/Administration: If you are an executor or administrator, include a copy of the court documents that prove your legal authority to act on behalf of the estate.
Mail the Return:
- Do NOT e-file a final tax return for a deceased individual, especially if you are claiming a refund. These returns must be mailed.
- Keep copies of everything you send for your records.
Important Considerations and Nuances
Who Can Sign the Return:
- Surviving Spouse: If filing a joint return, the surviving spouse can sign for themselves and write "deceased" and the date of death next to the deceased spouse’s signature.
- Executor/Administrator: If there is a court-appointed executor or administrator, they should sign the return and provide their title.
- Other Person Claiming Refund: If there’s no executor and you’re claiming the refund using Form 1310, you’ll sign it.
Joint Filers: If you filed jointly with your deceased spouse for the applicable tax year, and the full stimulus amount was not received, you would claim the entire missing Recovery Rebate Credit on your joint return. The RRC calculation will consider both filers’ eligibility.
Non-Filers: If your deceased spouse was not required to file a tax return but was otherwise eligible for a stimulus payment (e.g., received Social Security benefits), you would still need to file a 1040 for them (marked "Deceased") and claim the RRC to receive the payment.
Dependents: Remember that a deceased individual could not be claimed as a dependent on someone else’s tax return to be eligible for their own stimulus payment.
Estate Implications: If a stimulus payment is successfully claimed for a deceased individual, those funds become part of their estate. This means they are subject to any outstanding debts or bequests of the estate.
Statute of Limitations: Generally, you have three years from the tax deadline to claim a refund by filing a tax return. For example, to claim the 2020 RRC, you would typically have until April 15, 2024.
Beware of Scams: Be wary of anyone contacting you directly offering to help claim a stimulus payment for a fee, especially if they ask for personal information like your Social Security number or bank details. Only trust official IRS communications or reputable tax professionals.
What to Do if You Received an Ineligible Payment for a Deceased Spouse
This is equally important. If a stimulus payment was issued to your spouse after their death, and they were not eligible (e.g., died before the applicable tax year began), or if they were eligible for only part of a payment but received the full amount, the IRS requires the ineligible portion to be returned.
1. If the payment was a paper check:
- Do NOT cash or deposit it.
- Write "VOID" in the endorsement section on the back of the check.
- Write "Deceased," "Not Negotiable," or "Return to Sender" clearly on the front of the envelope.
- Mail the original, voided check to the appropriate IRS location. Do not staple, bend, or paper clip the check.
2. If the payment was a direct deposit:
- Contact the bank immediately to have them return the funds to the IRS.
- If the bank is unable to return the funds, you will need to send a personal check or money order for the amount to the appropriate IRS location.
- Make the check or money order payable to "U.S. Treasury" and write "20XX EIP" (e.g., "2020 EIP" or "2021 EIP") and the deceased taxpayer’s Social Security number on the memo line.
IRS Addresses for Returning Payments:
- Andover Campus:
310 Lowell Street
Andover, MA 01812 - Austin Campus:
3651 S IH 35
Austin, TX 78741 - Kansas City Campus:
333 W Pershing Rd
Kansas City, MO 64108 - Fresno Campus:
5045 E Butler Avenue
Fresno, CA 93727 - Cincinnati Campus:
7940 Kentucky Drive
Florence, KY 41042
Check IRS.gov or official IRS instructions for the most current addresses, as they can change.
Seeking Professional Help
Navigating the tax implications after a death can be incredibly complex. If you’re unsure about any of these steps, or if the estate has other complex tax issues, it is highly advisable to:
- Consult a Tax Professional: A Certified Public Accountant (CPA) or Enrolled Agent (EA) specializing in deceased taxpayer returns can provide invaluable assistance.
- Contact the IRS: While wait times can be long, the IRS provides official guidance. You can visit IRS.gov for detailed FAQs and publications (such as Publication 559, "Survivors, Executors, and Administrators").
- Low-Income Taxpayer Clinics (LITCs): If you meet income requirements, LITCs offer free or low-cost tax help.
Conclusion
Dealing with the financial aftermath of a spouse’s death, including understanding stimulus checks, adds an immense burden to an already challenging time. While the rules can seem convoluted, understanding the distinction between when a spouse died relative to the stimulus payment’s applicable tax year is key.
If your deceased spouse was eligible, filing a final tax return and claiming the Recovery Rebate Credit is the proper path. If they were not eligible and a payment was received, returning it promptly is crucial. By following these guidelines and not hesitating to seek professional assistance, you can navigate this process with greater clarity and confidence, allowing you to focus on healing and remembrance.