Many Americans are receiving their second stimulus checks.  For some, they have received more than expected.  Should you return the payment?  Some common situations and answers are below.

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By Alyssa Reed

I received a check for a deceased person:

If you received a payment that should not have been made (i.e., for a deceased person, etc.) the IRS issued a statement indicating the money should be returned.

Married couples should return the portion of the payment issued to the deceased spouse.  As the payment will have arrived for both spouses as one payment, it must first be cashed, then the portion issued to the deceased spouse (generally half) should be returned following the below instructions.

My gross income exceeds the limits and I should not have received one:

The stimulus checks were $600 for single individuals and $1,200 for married filing joint couples.  If your income exceeds the thresholds ($87,000 for single and $174,000 for married filing joint), you should not have received a check. However, the IRS’s form 1040 instructions indicate that any amounts received that should have been phased out due to exceeding the threshold limitations does not need to be repaid to the IRS.

My child is a dependent on my taxes but they still received a check:

If your child is over 16 and still a dependent on your 2020 taxes, they should not have received a check.  Many checks were based on 2019 tax information.  Therefore, if your dependent’s status changed for tax year 2020 and they are no longer a dependent, they may file a 2020 tax return and claim their check.

How to return a payment:

If you have not yet cashed the check, you may write “Void” in the endorsement section of the back of the check and mail it to the IRS (Memphis Internal Revenue Service, 5333 Getwell Rd., Memphis, TN 38118 for Tennessee taxpayers).  It is advisable to include a note indicating the reason for returning the check.

If you received the stimulus payment through direct deposit (or already cashed it), you can write a personal check for the stimulus payment amount that should not have been received and follow the previous instructions for returning it.