If you received a stimulus check made out to a deceased relative, or a direct deposit into one of their accounts that you control or even if you and a deceased spouse received a joint stimulus payment, the IRS is requesting that you return the money (or half of it, in the case of a joint payment). But how do you do that?
It seems that in the attempt to get stimulus payments out as quickly as possible, the IRS apparently didn’t cross-reference their data—which was reportedly drawn from 2018 and 2019 tax records—with other government bodies to confirm that everyone they were distributing money to is... still alive. At first, some people assumed they could keep any stimulus payments sent to deceased family members—but on May 6, 2020, the IRS announced that they’d like that money back, please:
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 your deceased loved one received a paper check that you have not yet cashed or deposited, the repayment process is relatively easy: Simply write “VOID” on the check, add a short explanatory note and mail it to the Refund Inquiry Unit office associated with your state (here’s the IRS’s list of offices by state).
If your deceased loved one received a direct deposit, if you cashed/deposited a check made out to a deceased person or if you need to return the portion of a joint stimulus payment made out to a deceased spouse, the process becomes a bit more complicated. As the IRS explains:
1. Submit a personal check, money order, etc., immediately to the appropriate IRS location listed below [the list of Refund Inquiry Unit offices by state].
2. 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.
3. Include a brief explanation of the reason for returning the EIP.
It’s not yet clear how the IRS will be clawing back these payments if they aren’t voluntarily returned. Let’s hope this doesn’t cause too many people undue financial hardship, as I can imagine that at least some households have already spent the extra stimulus money on bills, food and other necessities.
