Client's wife passed away in 2018. But he still received the 1st stimulus payment for both himself and his deceased wife. So he received $1,200 more than he should have. (He received $2,400 while it should be $1,200 for himself only)
Then he did not receive any 2nd stimulus payment at all. Based on his 2020 tax return though, his income level qualified, and therefore he gets the $600 back as Recovery Rebate Credit in his 2020 tax return.
What about the excessive $1,200 that was paid to his deceased wife in the 1st stimulus check though? Should it be deducted from the refund in his 2020 tax return too? Or should it be handled separately from his 2020 tax return by him sending the payment to the IRS directly?