Almost a year has elapsed since President Joe Biden signed the American Rescue Plan, which was intended to assist Americans in coping with an economy that had been crippled by COVID-19. In one element of the proposal, $1,400 cheques were deposited into the bank accounts of the vast majority of Americans.
There’s only one problem: 2021 was a turbulent year, and for many, a third stimulus check was the least of their concerns. According to the Internal Revenue Service, anyone who died within the fiscal year 2021 without getting a $1,400 stimulus payment is still owed a payment.
As long as they died between January 1 and December 31, 2021, their estate can make a claim for any stimulus monies that are owing to them.
Who Is to Blame Here?
The individual in charge of compiling the decedent’s tax return also seeks any stimulus money that was not already paid. If each of the following conditions is met, they are entitled to compensation:
- The deceased was a citizen or a permanent resident alien of the United States.
- The decedent was not claimed as a dependent on another taxpayer’s tax return at the time of the decedent’s death.
- The deceased had a Social Security number, which you may get here.
In order to be eligible for the total $1,400, the individual must have satisfied the following income requirements:
|FILING STATUS||INCOME||PAYMENT PHASES OUT ENTIRELY BETWEEN —|
|Single||Up to $75,000||$75,000 and $80,000|
|Head of household||Up to $112,500||$112,500 and $120,000|
|Joint filers||Up to $150,000||$150,000 and $160,000|
|Widows and widowers||Up to $150,000||$150,000 and $160,000|
It is recommended that you complete the Recovery Rebate Credit Worksheet if you are filing for a deceased who passed away in 2021 in order to assess if the decedent is entitled to receive the monies.
If the individual owes taxes for the year 2021, the Recovery Rebate Credit will lower the amount of taxes owing. They will get their money if they are due it as part of their tax return, which may be transferred immediately into their bank account.
What Happens to the Money That Was Paid?
Any stimulus payments that are recovered are added to any other monies that were left over when the person passed away. Example: If they already have money in investment and bank accounts, they should be able to have stimulus cash added to the rest of their finances. Regardless of whether the estate is subject to probate, the money made available must be dispersed in accordance with the terms of the will or as instructed by the probate court.
How to Determine Whether or Not Your Loved One Has Gotten a Check
Making preparations for someone after their death may be a difficult task, especially if they did not leave you with clear instructions on how to proceed. The fact that they received a stimulus payment in 2021 may be a source of confusion if you’re trying to settle the financial affairs of someone who left you with little financial information to go on.
There are a variety of approaches you may use to find out. The first (and most straightforward) may be handled if the dead gave you a list of their internet passwords as well as an online account with the Internal Revenue Service (IRS). Assuming this is the case, you may log in to find out whether (and when) money was received.
If you don’t have access to their online IRS account, but you do have access to their most often used bank account, check the ledger to see if there was a $1,400 deposit made in the spring of this year. If the money was deposited directly with the IRS, the description will include the words “IRS TREAS.”
Being left with dozens of minor duties that remind you of your loss after losing someone you care about may be difficult, especially when the person you care about has passed away. However, with tax season upon us, take advantage of this as a chance to collect the money that your loved one is owed.
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