Navigating the Aftermath: How to Claim a Stimulus Check on a Deceased Person’s Behalf

The loss of a loved one is a profoundly difficult experience, often compounded by the complex administrative and financial tasks that follow. Among these, the question of a deceased person’s stimulus check – or Economic Impact Payment (EIP) as the IRS refers to it – frequently arises, causing confusion and uncertainty for grieving families.

While stimulus checks were a vital financial lifeline during the COVID-19 pandemic, they were fundamentally intended for living individuals. This crucial distinction forms the bedrock of understanding how to handle a stimulus payment related to someone who has passed away. This comprehensive guide will walk you through the various scenarios, outlining the steps you need to take to correctly claim or return a stimulus check on behalf of a deceased individual.

Understanding the Core Principle: Eligibility at Time of Payment

The most critical factor in determining whether a stimulus check can be claimed or must be returned is the deceased individual’s eligibility status at the time the payment was authorized. Generally, for all three rounds of Economic Impact Payments (EIPs), the IRS stipulated that payments were for individuals who were alive on a specific "eligibility date" for each payment.

• First EIP (CARES Act – up to $1,200): Generally, eligible if alive on January 1, 2020.
• Second EIP (Consolidated Appropriations Act – up to $600): Generally, eligible if alive on January 1, 2020.
• Third EIP (American Rescue Plan – up to $1,400): Generally, eligible if alive on January 1, 2021.

Key Rule: If the individual died before the eligibility date for a specific EIP, they were not eligible for that payment. If they died after the eligibility date, they were eligible, and the payment belongs to their estate.

This distinction is paramount. Let’s explore the scenarios.

Scenario 1: The Deceased Was NOT Eligible for the Payment (Died Before Eligibility Date)

If a stimulus check was issued to someone who died before the relevant eligibility date for that payment, it was sent in error. The payment must be returned to the IRS. This applies whether the payment was received as a paper check or a direct deposit.

How to Return an Erroneous Payment:

• For a Paper Check:
  1. Do not cash or deposit the check.
  2. Write "VOID" in the endorsement section on the back of the check.
  3. Mail the voided check immediately to the appropriate IRS location based on your state. (You can find the specific IRS address for returning EIPs on the IRS website, typically under "Refund Inquiries.")
  4. Include a brief note explaining that the recipient is deceased and was not eligible.
• For a Direct Deposit:
  1. Contact the financial institution (bank, credit union) where the direct deposit was made.
  2. Inform them that the payment was sent in error and the recipient is deceased.
  3. Request that they return the funds to the IRS. The financial institution should have a process for doing this (e.g., an ACH return).
  4. If the funds were already distributed from the deceased’s account (e.g., to heirs or creditors), the estate is responsible for returning an equivalent amount to the IRS. You can do this by sending a personal check or money order payable to the "U.S. Treasury" to the relevant IRS address for returning EIPs. Write "Deceased," the deceased’s name, and the Social Security number on the check. Include a brief explanation.

Important Note: The IRS has stated that if a joint payment was issued and one spouse died before the eligibility date, the surviving spouse should return the entire payment. The IRS will then issue a new payment for the amount the surviving spouse is eligible for.

Scenario 2: The Deceased WAS Eligible for the Payment (Died After Eligibility Date)

If the individual was alive on the eligibility date for a specific EIP, then the payment was rightfully theirs. Even if they passed away shortly after the eligibility date but before receiving the check, the payment belongs to their estate and can be claimed.

This is the more common and often more complex scenario, as it involves the estate and tax filing procedures.

A. If the Check Was Received (Paper or Direct Deposit)

• For Direct Deposit: If the stimulus payment was direct deposited into an account that is still accessible by the executor, administrator, or surviving joint account holder, the funds generally belong to the deceased’s estate. These funds can be used for estate purposes, such as paying final expenses or distribution to heirs according to the will or state law.
• For a Paper Check: Do not return it. The check belongs to the deceased’s estate. However, cashing a check made out to a deceased person can be challenging.
  • If there is a designated Executor or Administrator (Probate Estate): The appointed executor or administrator (also known as the personal representative) has the legal authority to act on behalf of the estate. They should deposit the check into the estate’s bank account. They may need to provide the bank with a copy of the death certificate and their "Letters Testamentary" (if there’s a will) or "Letters of Administration" (if there’s no will). The bank will typically endorse the check with "For deposit only, [Estate Name], [Executor’s Name], Executor."
  • If there is NO Executor or Administrator (Non-Probate Estate/Small Estate): This is where it gets trickier. Some banks may allow a surviving spouse or immediate family member to deposit the check into a joint account or an account specifically set up for the deceased’s final expenses, especially if the amount is small and local small estate laws permit. However, many banks will require formal legal authority (like Letters Testamentary). If the bank won’t accept the check without formal probate, and the estate is otherwise too small to warrant full probate, you will likely need to claim the payment via a tax return (see section B).

B. If the Check Was NOT Received (Missing Payment)

If the deceased was eligible for a stimulus payment but never received it (e.g., due to an incorrect address, bank account closure, or simply not being issued), the payment can be claimed as a Recovery Rebate Credit on their final income tax return.

Who Can Claim the Recovery Rebate Credit?

The person legally authorized to act on behalf of the deceased’s estate is responsible for filing the final tax return and claiming the credit. This typically includes:

1. The Executor or Administrator: If the deceased’s estate is undergoing formal probate, the executor (named in the will) or administrator (appointed by the court) has the legal authority to file the final tax return. They will use their official "Letters Testamentary" or "Letters of Administration" as proof of their authority.
2. The Surviving Spouse: If the deceased was married and filed a joint tax return, the surviving spouse can file a joint final return for the year of death and claim the Recovery Rebate Credit. They should write "Deceased," the deceased spouse’s name, and the date of death in the signature area of the tax return.
3. Other Next of Kin/Heirs (for non-probate estates): If there is no formally appointed executor or administrator, and no surviving spouse filing a joint return, certain next of kin may be able to claim the refund using IRS Form 1310, Statement of Person Claiming Refund Due a Deceased Taxpayer.

Steps to Claim the Recovery Rebate Credit:

1. Determine Eligibility: Confirm the deceased was eligible for the specific EIPs based on their income, filing status, and alive on the relevant eligibility dates.
2. File a Final Tax Return (Form 1040):
   • The Recovery Rebate Credit is claimed on Form 1040 (U.S. Individual Income Tax Return) for the tax year in which the stimulus payment was issued (e.g., 2020 for the first two EIPs, 2021 for the third EIP).
   • Crucial: Write "DECEASED," the deceased taxpayer’s name, and the date of death across the top of the Form 1040.
   • Report all income the deceased received up to the date of death.
   • Calculate the Recovery Rebate Credit based on the deceased’s eligibility for each EIP. The instructions for Form 1040 and its accompanying schedules will guide you on how to calculate and claim this credit.
3. Attach Form 1310 (If Applicable):
   • When is Form 1310 needed? This form is required when someone other than a surviving spouse (filing a joint return) or a court-appointed personal representative (executor/administrator) is claiming the refund.
   • How to fill out Form 1310:
     • Part I, Box A: Check this if you are the court-appointed personal representative and have attached the proper documentation (Letters Testamentary/Administration). If you check this, you do not need to complete Part II.
     • Part I, Box B: Check this if you are a surviving spouse filing a joint return for the year of death. If you check this, you do not need to complete Part II.
     • Part I, Box C: Check this if you are NOT Box A or B, but are claiming the refund. This is for other next of kin (e.g., child, parent, sibling) claiming the refund for a non-probate estate. If you check this, you MUST complete Part II.
     • Part II (for Box C claimants): You must certify that there is no personal representative appointed and that you are entitled to the refund under state law. You will also need to state who else is entitled to a share of the refund and provide their details.
4. Mail the Return: You generally cannot e-file a tax return for a deceased taxpayer if you are claiming a Recovery Rebate Credit and need to attach Form 1310. It must be mailed. Send it to the appropriate IRS address for paper tax returns.

Essential Documentation You’ll Need

Regardless of the scenario, be prepared to provide the following documentation:

• Death Certificate: A certified copy is often required by banks and the IRS.
• Social Security Number (SSN): Of the deceased.
• Letters Testamentary or Letters of Administration: If you are the court-appointed executor or administrator.
• Previous Tax Returns: The deceased’s tax returns for the years relevant to the EIPs (e.g., 2018, 2019, 2020, 2021) may be helpful for verifying income and filing status.
• Bank Account Information: If depositing a check into an estate account.
• Form 1310: If applicable for claiming a refund.

Important Considerations

• Probate vs. Non-Probate Estates: The existence (or absence) of a formal probate process significantly impacts who can claim the check. If the estate is in probate, the executor/administrator is the primary claimant. If not, Form 1310 becomes crucial.
• Joint Filers: A surviving spouse who filed jointly should be able to receive the full EIP for both themselves and their deceased spouse (if the deceased was eligible), provided the deceased passed after the eligibility date.
• Dependents: If the deceased claimed dependents, those dependents’ eligibility for EIPs may also be a factor, and the credit for them would be included in the deceased’s final return.
• Statute of Limitations: There are deadlines for claiming tax refunds, including the Recovery Rebate Credit. Generally, you have three years from the date the original return was filed or two years from the date the tax was paid, whichever is later. For the first two EIPs (2020 tax year), the deadline was typically April 15, 2024. For the third EIP (2021 tax year), it’s typically April 15, 2025.
• IRS Communication: The IRS can be slow, especially with mailed correspondence. Be patient, keep copies of everything you send, and document all communications.
• Professional Assistance: If the estate is complex, involves significant assets, or if you are unsure about the tax implications, it’s highly advisable to consult with an estate attorney or a qualified tax professional (e.g., a Certified Public Accountant specializing in estate taxes). They can ensure compliance and maximize benefits for the estate.

Avoiding Scams

Unfortunately, periods of financial aid often bring out scammers. Be wary of:

• Unsolicited calls or emails: The IRS will not call, text, or email you demanding immediate payment or asking for personal financial information related to a stimulus check.
• Requests for gift cards or wire transfers: These are never legitimate payment methods for the IRS.
• Promises of faster payments: No one can speed up the IRS process for a fee.

Always go directly to the official IRS website (IRS.gov) for information or contact them via their official phone numbers if you have questions.

Conclusion

Handling a deceased loved one’s stimulus check requires careful attention to detail and an understanding of IRS rules. The critical differentiator is whether the individual was alive on the specific eligibility date for each payment. If they were, the payment belongs to their estate and can be claimed via a final tax return using the Recovery Rebate Credit and potentially Form 1310. If they were not, the payment must be returned.

While the process can seem daunting during a time of grief, following these guidelines will help ensure you correctly navigate this financial obligation and entitlement, bringing one more piece of the deceased’s affairs to a proper close. When in doubt, seeking professional legal or tax advice is always the safest course of action.