The IRS made a mistake and now some of you may have to pay the price...or return it.
The CARES Act passed and promised coronavirus relief payments of up to $1,200 per adult to millions of Americans. While some have receive their payment via a direct deposit or by check...there are some kinks that have risen.
Recently, the IRS tried to clarify one of those kinks: What should you do if a stimulus check was issued to a dead person?
On May 6, the IRS added new language to its FAQ page for Economic Impact Payments (a.k.a. stimulus checks), stating that people who have died are not eligible for payments.
In fact, checks issued to dead people are supposed to be sent back or repaid. Here’s exactly what the IRS says:
A Payment made to someone who died before receipt of the Payment should be returned to the IRS by following the instructions in the Q&A about repayments. Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000.
If you received an ineligible payment via direct deposit, or you got a check and already deposited it, the IRS expects you pay the money back, via personal check or money order made out to the U.S.
It still remains unclear what will happen if an ineligible stimulus payment is not returned to the IRS.
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