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Incentive Checks and Child Support: What You Need to Know About a New Payment and the Last

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The rules changed with a second check, but what about a third payment?

Angela Lang / CNET

The first and second stimulus checks have come and gone, and one the third payment may well come forward. There is a lot to know in this gap, including the current situation with incentive check money that may or may not maybe not garnished if a party owes child support. There’s also a loophole that could help you, and another one that could hurt you – plus some potential changes coming up dependent status for a third stimulus check, if it is approved as part of a COVID-19 package as soon next month.

If you are one of the parents who did not receive the money you may still be able to get it, you will just have to wait until you file tax for you catching up has been taken care of. Keep reading for the full explanation.

One thing that didn’t change in the rules for eligibility for the second stimulus check is the definition of a child dependent if 16 or younger (this may change with the next stimulus check). However, December’s bill allowed payments of $ 600 for each child as part of the household’s total, $ 100 more than the first round of checks. So, how can you and your child’s other parent both get money for the same child, and what if you didn’t get as much as you think you should? We will explain. This story has been updated with new information.

How is the child benefit situation for a third stimulus check?

While it is too early to say what will certainly happen, the latest incentive package proposal (PDF) specifically mentions child support, at least in terms of seizure. As with the second incentive payment, the terms are for one third stimulus check could look like this:

Down payments are generally not subject to administrative compensation for overdue federal or state debts, including compensation for overdue child support.

That means that people who owe child support would still be able to get their full stimulus payment for which the terms are stipulated in law – but possibly only with upfront payments. In other words, a stimulus check, direct deposit or EIP card automatically sent by the IRS. An example of something that isn’t a prepayment is claiming missing money as part of a Refund Discount. Note that the language of the final account is expected to go into detail.

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Stimulus Check # 3: What You Need to Know


How a proposed dependent state change could affect the next incentive payment

The third stimulus check could be dependents of all ages count towards the family total, for a $ 1,400 each. For the subgroup of families with children aged 17 (or 18, but living at home and still in high school, depending on your local rules), a switch to accepting dependents of all ages could be beneficial for eligible families including those in child benefit scenarios.

How other qualification changes can affect your stimulus control

Ultimately, between the second and third check, your situation may change, including your eligibility. There is talk of making the next stimulus payment ‘targeted’, with the end result fewer people generally qualifying. The latter proposal suggests a sharp income limit so that if you earn above a certain amount, say $ 150,000 as a householder, you wouldn’t be qualify for any stimulus check money in the third round, even if you have several dependents.

How can both parents receive incentive money with joint custody?

Many unmarried parents who share joint custody of their children actually received two payments for the same child during the first round of incentive checks, if they claim taxes from those children alternately every two years.

Basically, if one parent claimed a child in even years and the other in odd years, both could have gotten checks for the same child. That’s because the IRS looked at two different tax years – 2018 and 2019 – to determine if he was eligible for the initial check.

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

The second stimulus check blocks seizure of child support overdue, but the IRS may still be able to redirect your payment

Unlike the CARES Act, making it legal for states garnish the first stimulus check For people who owed more than $ 150 in arrears, a rule for the second check specifies that parents can keep their full payment even if they owe child support. In fact, the latest bill bans the seizure of stimulus payments sent by the IRS on Jan. 15 for most types of debt, including from private creditors and banks.

However, if you have not yet received (part of) a payment from the IRS and are planning to do so claim it when you file your taxes this year, the IRS may divert that payment to cover child support arrears, unpaid student loans, and other federal and state debts. The IRS said it is aware of the loophole and is “investigating this issue.”

The change in the seizure rule is also a major problem for this reason

When the the first stimulation checks were garnished To pay back child support, sometimes clerical errors were also used to spend incentive money on a (new) spouse who was not the other parent of the child. Stopping all seizures of money for stimulus checks means that these individuals do not have to reclaim their entire second money for stimulus checks from the IRS. Here’s how they will claim money that has been falsely garnished from their first payment.

For more stimulus check details, here’s how calculate the total of your second stimulus check and here’s what we know about one now third stimulus check for maximum $ 1,400 per person.

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