Here's a link to an interesting article about the recent stimulus payments. LA Times Article
We heard from one family this week, asking about the stimulus payment that was paid to their deceased loved one. The stimulus payments are for the 2020 tax year, but the U.S. Treasury used data from the 2019 returns, if filed, and, if not, the 2018 returns. They did what Congress wanted - get the money to Americans as quickly as possible. What's not clear is how funds paid to deceased taxpayers will be returned. We'll watch for word on what to do. For now, it would seem prudent not to spend money that is for a taxpayer who died before January 1, 2020.
Here's a link to the actual text of the legislation:
https://irc.bloombergtax.com/public/uscode/doc/irc/section_6428
Like so many other things in our lives right now, this reminds me of a saying I learned during Basic Training at Fort Knox, Kentucky, "Hurry Up and Wait."
ReplyDeleteI've added a link to the actual text of the legislation: https://irc.bloombergtax.com/public/uscode/doc/irc/section_6428
The legislation makes it clear that the refund is for the 2020 tax year based upon a refundable credit that will be applied on the 2020 individual income tax return. Estates are specifically excluded from the definition of "eligible person," so the estate is not eligible to receive the refund.