What do you think about this, fellow FreeAdvicers?

[commentator]

What is the name of your state? Tennessee

Lady next door has been a widow for slightly over two years now. Retired, 75 years old, has filed taxes by herself for last year, filed joint taxes before that for self and now deceased spouse. Still has some income from her part time job.

She did not receive any money when the stimulus checks went out. With assistance, she filed a trace to request that they send her the check. Then, in July, she filed her 2019 income taxes, no mention of deceased husband. Then in about two weeks, she received a stimulus check, $2400, made out to her in her name only. She is confused and scared to deposit. Why $2400 and not $1200? Was the additional $1200 for her deceased husband, and if so, will she have to pay the money back? Will she owe it in taxes next year when she files her 2020 return? She did go on and deposit the whole check, but is very anxious. I don't have a clue, suspect no one much does. But what do you guys think?

 

[adjusterjack]

I suggest she consider it a long term savings account until she is able to contact the IRS and find out why she got it. In other words, don't spend it.

 

[bcr229]

So she filed joint for 2018, single for 2019 because husband deceased, and in between the two filings the check for $2,400 was sent? I think she will end up owing back $1200.
https://www.aarp.org/money/taxes/info-2020/stimulus-check-in-deceased-name.html

Not sure why the check was in her name only though, unless it happened as a result of the info entered during the online request for a paper check. It wouldn't be the first time two IT systems didn't merge data correctly, especially since this whole thing was laid on very quickly. Whoever programmed it probably didn't account for her scenario.

 

[commentator]

Thanks guys, I don't think repaying the money will be a big issue, but she is terrified of "the government." I am sure they'll work out some sort of recclaimation process eventually, as quite a few people in my senior community who are no longer with us received a payment.

 

[Taxing Matters]

But what do you guys think?

In this case it appears she needs to pay back the extra $1,200. Here's what the IRS itself says about payments to deceased persons on its EIP FAQ page, answer 11:

A11. No. A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions in the Q&A about repayments. Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made to the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000. If you cannot deposit the payment because it was issued to both spouses and one spouse is deceased, return the check as described in Returning the Economic Impact Payment section on this page. Once the IRS receives and processes your returned payment, an Economic Impact Payment will be reissued.​

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The Bureau of Fiscal Services has cancelled outstanding Economic Impact Payment (EIP) checks issued to recipients who may not be eligible, including those who may be deceased. Recipients should still return these checks as described in Returning the Economic Impact Payment section on this page.​

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Look at answer # 61 for the details of how to return the $1,200.