Is an estate entitled to an economic stimulus

We’ve received questions regarding economic stimulus checks being paid to deceased individuals. Unfortunately the news agencies are making misleading statements to the extent that individuals who paid income tax and filed a tax return in 2018 or 2019 are entitled to the stimulus payment. They neglect to point out that estates and trusts are excluded from the definition of an eligible individual.

Sec. 6428.2020(e)(3) defines eligible individuals:

  1. (3) ELIGIBLE INDIVIDUAL.—The term ‘eligible individual’ means any individual other than—
    1. (A) any nonresident alien individual,
    2. (B) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and
    3. (C) an estate or trust.

Short answer: no, a deceased individual’s estate is not entitled to an economic stimulus payment.

The complete text of the Cares Act can be found at: https://www.congress.gov/bill/116th-congress/senate-bill/3548/text

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