Does someone who has died qualify for the economic impact payment?

No. A payment made to someone who died before receipt of the payment should be returned to the IRS. If payment was made to joint filers and one spouse had not died before receipt of the payment, you only need to return the portion of the payment made on account of the decedent. See Questions 10 and 41 at the following link for additional instructions on this rule and how to return this payment: https://www.irs.gov/coronavirus/economic-impact-payment-information-center.

 

Did you receive a refund of 529 college tuition money?

If you used funds from a 529 college savings plan and received a refund for cancelled classes or housing due to the coronavirus concerns (or for any other reason), that money must be recontributed to the 529 account to avoid any tax and penalties. You have 60 days from the date of the refund to recontribute the funds.  However, if the 60-day period ends on or after April 1, 2020 and before July 15, 2020, then you have until July 15, 2020 to recontribute the monies.  All of those funds will be treated as principal, as opposed to a mix of principal and earnings. If you do not recontribute, it will be treated as a non-qualified distribution from the 529 plan and subject to tax and penalties. The redeposit should be accompanied by a detailed letter of explanation which you should retain in your tax records and provide to your tax preparer.

This information is current to the best of our knowledge as of May 14, 2020 and we will continue to review all updates and changes as they are released in order to put out the most up-to-date information.