This week, Dear Penny takes on your toughest questions about those coronavirus relief payments.
My mother died in October. I still haven’t filed her 2019 return. The bank account is still open that she had her 2018 tax return direct deposited into. There is a stimulus payment in that account. I’m supposed to send it back, right?
Yes. The IRS says if someone who dies receives a payment, the entire amount should be returned. People who are widowed and received a $2,400 check because the payment was based on their tax return while their spouse was still living should return their spouse’s half of the check.
For direct deposits, you’ll have to do so by mailing a check or money order according to the instructions on the IRS Economic Impact Payments FAQ (Question 41 as of this writing).
However, many are skeptical that the IRS will actually go after these payments. Some tax experts even say the CARES Act doesn’t give them the “clawback” authority they’d need to retrieve them.
Dead people also got stimulus checks in 2008, but the IRS never took legal action to get them back. Doing so would likely be costly and probably wouldn’t yield that much money, plus with so many people on the brink of financial crisis, it wouldn’t be a good look for them to go after survivors for $1,200.
We had a child earlier this year, but didn’t receive the $500 credit for dependent children under 17. How do we get it?
You’ll have to wait until you file your 2020 tax return next year. Stimulus payments are an advance on a temporary 2020 tax credit, but they were processed using info from your 2018 or 2019 return. That means children born in 2020 are eligible for the $500 credit. Their parents just have to wait to tell the IRS about their new arrival.
My check was sent to a bank account I closed. Why can’t I update it using Get My Payment?
The IRS says you’re not allowed to change your bank account via its web features because of the potential for fraud. If your check went to the wrong bank account, your bank will return it to the IRS and you’ll get a paper check. Due to an initial glitch with Get My Payment, people in this situation couldn’t track their checks at first, but now you should be able to.
The good news is that the IRS has started mailing rejected payments via paper check within 14 days to the address they have on file — meaning that unlike many people getting paper checks, you won’t have to wait into the summer for your payment.
I don’t recognize the bank account number my check was deposited into. What will happen to my payment?
This is a common scenario for people who got a refund advance using a tax preparation service like TurboTax or H&R Block.
When you get a refund advance, the tax preparer gives you a loan advance on a prepaid debit card. Then your refund is sent directly to a temporary bank account set up by the preparer. As a result, the IRS sent many refunds to those temporary accounts.
If that occurs, the bank will return the money to the IRS and you’ll get a paper check.
My ex owes me child support. Does that mean I get their coronavirus check?
Possibly, if they were eligible for a check and your state has reported that they’re delinquent to the Treasury Offset Program.
If you get your ex’s tax refund, chances are you’ll get their coronavirus check, too.
If their check is intercepted, the IRS will send it to your state agency that’s responsible for child support enforcement. That agency is responsible for disbursing the check.
I’m still locked out of Get My Payment. What gives?
A lot of people have been locked out of Get My Payment because the way they type in their address doesn’t match up to the formatting the IRS system uses. Try entering your address in ALL CAPS and using the exact same formatting that appears on your most recent tax return. You can also search your address using the USPS ZIP Lookup Tool and entering it using the same format.
I’m on SSI. When will I get my payment?
Payments for people who get SSI or VA benefits and don’t have a tax filing requirement are expected to be made by mid-May at the latest.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. Send your tricky money questions to AskPenny@thepennyhoarder.com.
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