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Child support and third stimulus checks: we’ll clear up the confusing details



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What are the rules regarding the third payment and child benefit?

Angela Lang / CNET

For parents who share custody of their children, child support can pose some complications stimulus check total and suitabilityTo add to that, the rules for the third payment are changed of the first two payments, removing a loophole that allowed some families to “double dip” (both parents receive their own dependent payment for the same child), among other significant changes.

However, there is good news for it families with childrenThe new incentive account includes a major extension to the child tax credit that could reduce child poverty by 40%, according to a report from the Center for Budget and Policy Priorities. That’s on top of the $ 1400 checks for eligible persons and the new bills broader definition of dependent, which means that many families receive more money this time.

Here are the details we’ve gotten so far, including when your check may arrive how to track it and what to do if you third stimulus check is missing(Plus, there would be one fourth stimulus controlRead on as we sort out and explain the complicated details surrounding child support situations and incentive checks.

Is the loophole for joint custody and incentive checks closed for the third payment?

In fact, many unmarried parents who share custody of their children actually received two payments for the same child during the first round of incentive checks, if they alternated between years claiming those children on their taxes. In other words, if one parent claims a child in an even year and the other in an odd year, both can receive checks for that child. That’s because the IRS looked at two different tax years – 2018 and 2019 – to determine if they were eligible for the initial check.

For the second stimulus check, the IRS only looked at the 2019 tax returns, but that doesn’t mean the double loophole was completely closed. If you are a parent in a joint custody scenario like the one above, and you usually claim a dependent child in odd tax years, you may be able to get a $ 600 double child dependent payment as a tax reduction when submitting an application and claim the child on your tax return, similar to what you would if you didn’t receive a second stimulus check, although you do qualify for one.

That loophole could be closed in the new incentive law that allows the third check. According to Andy Phillips, director at The Tax Institute at H&R Block, parents who are not married to each other and who alternate custody of an eligible dependent may not both be eligible for incentive money for the same dependent this time.

Phillips said that because of guidelines Congress has put into the new law, “ it is possible that if a prepayment is received by one parent for the dependent, no additional payment can be made for the same depending on the return of the other parent ( by claiming the recovery discount). Credit). ”Phillips said the Treasury Department is expected to provide guidance on this situation, but not at this point.

How is child support related to the third incentive payment?

With the third check, if you’re in arrears with child support, you can still get your full incentive payment. It will not be redirected to cover late support paymentsThis is true for federal or state debts in arrears: your third payment will not be reduced or settled. However, private debt collection agencies may be able to divert your payment to cover a debt.

Also, the IRS may withhold all or part of an incentive payment if you claim it as Credit for chargeback discount when you file your taxes. An independent taxpayer advocacy group within the IRS is working with the agency to address this issue.


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Stimulus Check 3: How Much Money You Get


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New dependent guidelines make it possible to qualify for the third incentive payment

The third stimulus check makes dependents of all ages count towards the family total, for $ 1,400 eachThis time, an Eligible Dependent is someone you make a claim against taxesincluding an eligible child under the age of 19, a student under the age of 24, or an eligible family member who relies on you to provide the care.

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Details of stimulation control can make working out your total take a little confusing.

Sarah Tew / CNET

What you need to know about the 2021 child discount

The the child discount divides the payments of maximum $ 3,600 per child to tax holders who qualify for the income limitAccording to CNBC, parents of dependent children may be able to use the same even / odd tax return method to receive both payments. The U.S. Treasury Department and the IRS have not yet provided advice on how they will manage prepayments to parents in split custody arrangements, CNBC said.

How other fitness changes affect your stimulus control

The new incentive payment is ‘targeted’, what does that mean generally fewer people are eligibleThe checks come with a sharp income cut-offso that if you earn more than a certain amount – say, $ 120,000 as a householder – it wouldn’t be qualify for any stimulus check moneyeven if you have several dependents. The date you file your taxes, and when the IRS processes that payment, it can also play a major role in whether or not a full or partial payment is received, or perhaps none.

For more stimulus check details, here’s everything you need to know third stimulus check for maximum $ 1,400 per person and how track your stimulus check money


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