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If you’ve received a stimulus check addressed to a deceased family member, or a direct deposit into one of their accounts that you manage, or if you and your deceased spouse received a joint payment, the IRS asks that you return the money (or half if it’s a joint payment). But how should you go about doing this?
In their rush to distribute stimulus payments quickly, the IRS failed to cross-check their data—collected from 2018 and 2019 tax records—with other government agencies to ensure the recipients were still living. Initially, some believed they could keep payments sent to deceased relatives. However, on May 6, 2020, the IRS clarified that they would like the funds returned:
If a payment was issued to someone who passed away before receiving it, it must be returned to the IRS according to the repayment instructions. Return the full payment unless the payment was made to joint filers, and one spouse was still alive. In that case, only the portion of the payment related to the deceased must be returned. This amount will be $1,200 unless the adjusted gross income exceeded $150,000.
If the stimulus check issued to your deceased loved one is still a paper check that has not been cashed or deposited, the repayment process is straightforward: Simply write “VOID” on the check, include a brief explanatory note, and send it to the Refund Inquiry Unit office relevant to your state (here’s the IRS’s list of offices by state).
If your deceased loved one received a direct deposit, or if you cashed or deposited a check made out to a deceased person, or if you need to return the portion of a joint stimulus payment made to a deceased spouse, the process becomes more complex. As the IRS explains:
1. Immediately send a personal check, money order, etc., to the correct IRS location listed below [the list of Refund Inquiry Unit offices by state].
2. On the check or money order, make it payable to “U.S. Treasury,” and include the notation 2020EIP, along with the taxpayer identification number (social security number, or individual taxpayer identification number) of the check’s recipient.
3. Attach a brief explanation stating the reason for returning the Economic Impact Payment (EIP).
The exact method the IRS will use to recover these payments if they are not returned voluntarily is still uncertain. Let’s hope this doesn’t place an undue financial burden on too many people, as it’s likely that some households have already used the additional stimulus funds to cover bills, food, and other essential expenses.
