Dead People And CNY Inmates Can’t Keep Stimulus Check
Some people who are not entitled to a stimulus check got one anyway and the IRS wants the money back. Now.
The IRS has been updating its economic impact payment information center, and it is now clear that those in jail do not qualify for a stimulus check. The answer to question 12, "Does someone who's incarcerated qualify for the Payment?" was updated and now states, "A Payment made to someone who is incarcerated should be returned to the IRS."
If a couple filed their taxes jointly and one person is in jail, then the person who is not incarcerated is entitled to a $1,200.00 payment. If $2,400 was received, $1,200 must be returned to the IRS.
If someone died before receipt of the stimulus check, then the money must be returned. The Family can not keep the Payment. New information on the IRS information center clearly says you must "Return the entire Payment unless the Payment was made to joint filers. If one spouse did not die before receipt of the Payment, you only need to return the portion of the Payment made on account of the decedent."
A college student will only receive a Payment if they were NOT claimed as a dependent on 2019 taxes. The IRS goes on to say if a child can't be claimed as a dependent by anyone for 2020, they may be eligible to claim a $1,200 credit on the 2020 tax return next year.
If you received a Payment but shouldn't have the IRS says, you MUST return it IMMEDIATELY! They want their money back and better not take to long (wink wink).