Over 11 months ago, President Joe Biden signed the American Rescue Plan, which was designed to help Americans cope with an economy decimated by COVID-19. One component of the scam was depositing $1,400 checks into the accounts of most Americans.
The problem is that many people were under a lot of stress in 2021, and a third stimulation check was the last thing on their minds. According to the IRS, everyone who died in 2021 without receiving a $1,400 stimulus payment is still entitled one.
If they died between January 1 and December 31, 2021, their estate can file a claim for stimulus funds owed to them.
The person in charge of filing the decedent’s tax return will also request any unpaid stimulus money. If each of the following conditions is met, they are entitled to payment:
- The person who died was either a U.S. citizen or a permanent resident alien in the country.
- The dead was not claimed as a dependent on another taxpayer’s return.
- On the person of the deceased, there was a Social Security number.
The individual must meet the following income conditions in order to get the full $1,400:
Filing Status Income Payment Phases Out Entirely Between —
Up to $$75,000 and $80,000
Head of household
Up to $$112,500 and $120,000
Up to $$150,000 and $160,000
Widows and widowers
Up to $$150,000 and $160,000
If a person owes taxes in 2021, the Recovery Rebate Credit will reduce the amount owed. If the payment is due, it will be included in their tax return and deposited into their bank account as soon as possible.
So, Where Does the Money Go?
Any stimulus payments that are recovered are added to any remaining funds when the person passes away. If they already have money in investments and bank accounts, for example, stimulus funds should be added to the rest. Whether the estate goes through probate or not, the money left over must be divided according to the will or the directions of the probate court.
What Should You Do If You Aren’t Sure If Your Loved One Received a Check?
There are a couple of ways to find out. The first (and quickest) may be addressed if the deceased gave you a list of their internet passwords and has an IRS online account. You can check in to see if (and when) money was received if this is the case.
Check the ledger for a $1,400 deposit from last spring if you don’t have access to their online IRS account but do have access to their most commonly used bank account. If it was immediately deposited, there will be a “IRS TREAS” indication in the description.
It’s terrible to lose someone you love, especially when you’re saddled with a host of minor obligations that act as continual reminders of their absence.
Take advantage of this opportunity to collect money that your loved one is owed as tax season approaches.
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