The 2020 IRS 1040 tax form line 30 has my head spinning in a dilemma.

[BoSox]

I have read the 1040 instruction manual pertaining to line 30 "page57,and58" and all I see is contradictions. Specifically on these following two thoughts on what is considered a valid social security number.

1, On one hand, the manual says on page 57 a valid SS # includes someone who died in 2020 if you are preparing a return for that person "joint return in my case".

2, The next page describes a valid social security number is one that is valid for employment in the United States and is issued before the due date of your 2020 return(including extensions).

For me, this involves both the first and second economic impact payments. The first EIP payments were received and cashed by both my late wife and myself for a total of $2400. the second EIP payments did not come and I intend to get them through the recovery rebate credit on line 30. However, I am not sure if I can claim for both $1200 in a joint return or only for myself for $600. Plus I am not sure if I have to return $1200 for the first EIP that was received by my wife.

Actually after thinking about it both #1 and 2 of the above quotes seems like people who died in 2020 and were US citizens with a SS card are considered valid for the EIP.

Anyone have some experience in this area? I would appreciate a few thoughts thank you.

[monet]

[MaxPen]

#SHEEP

Baaaahhhhh........

[Ozzy]

LMAO you gotta love them sheeples !

[MisterV]

BoSox:

This is not definitive, but it's how I look at it; for the correct answer consult a tax expert.

File your return claiming the first EIP as joint: your wife was alive at that time, so her subsequent passing will not alter the requirement that you report and pay tax on it.

As for the second EIP, the one you haven't received yet, you are entitled only to the amount you'd receive as a single man; if they feds records haven't been adjusted to show the passing of your wife then they'll likely send you her portion in addition, and you shouldn't keep it (fraud: she's dead).

[BoSox]

BoSox:

This is not definitive, but it's how I look at it; for the correct answer consult a tax expert.

File your return claiming the first EIP as joint: your wife was alive at that time, so her subsequent passing will not alter the requirement that you report and pay tax on it.

As for the second EIP, the one you haven't received yet, you are entitled only to the amount you'd receive as a single man; if they feds records haven't been adjusted to show the passing of your wife then they'll likely send you her portion in addition, and you shouldn't keep it (fraud: she's dead).

Thank you, MisterV. I also believe that you are correct on all counts.

[regnis]

There was actually nothing in the rules for the first set of checks/payments requiring or otherwise providing for the return of payments to a deceased taxpayer. There is still nothing definitive, but we have been told that they should be returned if the IRS has not already stopped payment on the check. Since only a small number were done by actual check, not that many could have been stopped.

We were advised to use the following procedure on the first stimulus checks last year. I am not sure if this has been updated.


"How do you return a stimulus payment?
The IRS provided specific instructions for returning an economic impact payment (EIP) sent to a person who is dead.

If the payment was a paper check and it hasn’t been cashed:

Write "Void" in the endorsement section on the back of the check.
Mail the voided Treasury check immediately to the appropriate IRS location for your state.
Don't staple, bend or paper clip the check.
Include a note stating the reason for returning the check.
If the payment was a paper check and you have cashed it, or if the payment was a direct deposit:

Submit a personal check, money order, etc., immediately to the appropriate IRS location for your state.
Write on the check/money order made payable to “U.S. Treasury” and write “2020EIP,” and the taxpayer identification number (Social Security number, or individual taxpayer identification number) of the recipient of the check.
Include a brief explanation of the reason for returning the EIP."

I should add that they want the check returned if someone died after issue but before receipt. We have taken a contrary position and based it upon the date on the check compared to the date of death.

[BoSox]

Regnis, thanks for your thoughts. Are you a tax specialist or some other related in the field? After reading your post I think that you do not disagree with what MisterV wrote in his post above yours, is this right?

[tableplay]

Since only a small number were done by actual check

I received a check for the first one and a debit card for the 2nd. I guess everything in the future is by debit card. BTW the debit card is handled by a 3rd party, and they charge fees for various things (people from this company must have paid for some congress folks' mansions upgrade(s) as "gifts" to secure the stimulus debit card contract). For example only the first debit card withdrawal is free, thereafter there is a charge, so obviously I withdrew the full amount ($600 IIRC).

I wonder if anyone tried to put their debit card in an ACS Playon terminal at the casino and tried to transfer some or all of the balance to a gaming machine (will be cross-posting this to Monet's degen thread) ?

[regnis]

Bo--I used to be but now concentrate on estates and trusts and business transactional work. But I get this question enough that I did the research and consulted with the right people. I do agree with V unless the date on the check was before the date of death. In that case I would take my chances. Now--I assume you don't need the $$. So if you wanted to return the portion attributable to your wife regardless of the date on the check so that it may let you sleep better not to worry about the IRS coming after you, so be it.

[jbjb]

Since only a small number were done by actual check

I received a check for the first one and a debit card for the 2nd. I guess everything in the future is by debit card. BTW the debit card is handled by a 3rd party, and they charge fees for various things (people from this company must have paid for some congress folks' mansions upgrade(s) as "gifts" to secure the stimulus debit card contract). For example only the first debit card withdrawal is free, thereafter there is a charge, so obviously I withdrew the full amount ($600 IIRC).

I wonder if anyone tried to put their debit card in an ACS Playon terminal at the casino and tried to transfer some or all of the balance to a gaming machine (will be cross-posting this to Monet's degen thread) ?

You can go to their website to find fee free ATM's

[tableplay]

Since only a small number were done by actual check

I received a check for the first one and a debit card for the 2nd. I guess everything in the future is by debit card. BTW the debit card is handled by a 3rd party, and they charge fees for various things (people from this company must have paid for some congress folks' mansions upgrade(s) as "gifts" to secure the stimulus debit card contract). For example only the first debit card withdrawal is free, thereafter there is a charge, so obviously I withdrew the full amount ($600 IIRC).

I wonder if anyone tried to put their debit card in an ACS Playon terminal at the casino and tried to transfer some or all of the balance to a gaming machine (will be cross-posting this to Monet's degen thread) ?

You can go to their website to find fee free ATM's

Yes, that's right. I withdrew from a fee free ATM (Target). It's good to know that if you go to a fee free ATM they won't charge you if you make more than one withdrawal on the card. Thanks.

[BoSox]

Bo--I used to be but now concentrate on estates and trusts and business transactional work. But I get this question enough that I did the research and consulted with the right people. I do agree with V unless the date on the check was before the date of death. In that case I would take my chances. Now--I assume you don't need the $$. So if you wanted to return the portion attributable to your wife regardless of the date on the check so that it may let you sleep better not to worry about the IRS coming after you, so be it.

regnis, thank you very much for the help.