How to Revert a Deceased Relative’s Stimulus Check
If you receive a promotion check for a deceased relative, or a direct deposit into one of their accounts that you control, or even if you and the deceased spouse receive a joint incentive payment, the IRS requires you to return the money (or half, in the case of a joint payment). But how to do that?
It appears that in an attempt to get incentive payments as quickly as possible, the IRS apparently did not cross-check its figures, which were reportedly taken from tax reports for 2018 and 2019, with other government agencies to confirm that they were all distributed the money until … are still alive. At first, some people assumed that they could keep any incentive payments sent to deceased family members, but on May 6, 2020, the IRS announced that they would like to get this money back, please :
A payment made to someone who died prior to receiving the Payment must be returned to the IRS by following the instructions in the Payments FAQ . Return the entire Payment, unless the Payment was made jointly to the applicants and one of the spouses did not die before receiving the Payment, in which case you only need to return part of the Payment made at the expense of the deceased. This amount will be $ 1,200 if adjusted gross income does not exceed $ 150,000.
If your deceased loved one received a paper check that you haven’t cashed or deposited yet, the payout process is relatively straightforward: just write NOT VALID on the check, add a short explanatory note, and mail it to the Refund Request Office associated with your state. ( here is a list of IRS offices by state ).
If your deceased loved one received a direct deposit, if you cashed / deposited a deceased person’s check, or if you need to return a portion of the deceased spouse’s incentive joint payment, the process becomes a little more complicated. … As the IRS explains:
1. Immediately submit a personal check, money order, etc. to the appropriate IRS agency listed below [ List of Refund Request Office Offices by State ].
2. On the check / money order payable to the US Treasury, write 2020EIP and the taxpayer identification number (Social Security number or individual taxpayer identification number) of the recipient of the check.
3. Include a brief explanation of the reason for the return of the EIP.
It is not clear how the IRS will collect these payments if they are not returned voluntarily. Hopefully this will not cause undue financial hardship for too many people, as I can imagine that at least some households have already spent the extra money on sales promotion on bills, food, and other necessities.