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Home / Tips and Tricks / Incentive Checks and Child Support: What You Need to Know About a Third Party Payment

Incentive Checks and Child Support: What You Need to Know About a Third Party Payment

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

Angela Lang / CNET

Much attention is paid to one third stimulus check of maximum $ 1,400 per person while we await the final approval of the $ 1.9 trillion stimulus package, which could arrive already at the end of the monthBetween now and when a new invoice is approved, everything can change, including whether your stimulus payment can be garnished for child benefits in arrears. There are also two loopholes – one that could help you and one that could hurt you – turning into dependent status that could make more money for families, if approved.

Concerning the first and second checks, if you are one of the parents who never received incentive money, you may be able to get it when you file your taxes this year. We will explain more below. Also note that a major change to the rules for eligibility for the third stimulus check would qualify more people, including dependents of any age

So, how can you and your child’s other parent both get an incentive payment for the same child, and what if you didn’t get as much as you think you should from the first two checks? We will explain. This story has been updated with new information.

What will the child support situation be like for a third incentive payment?

While we don’t have an answer until a final bill is approved, the latest incentive package proposal specifically addresses child benefits, at least in terms of seizure. As with the second incentive payment, the terms are for one third stimulus check could possibly 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 people who owe child support would still be able to get their full incentive payment if the terms were laid down in law – but possibly only on an upfront payment basis, that is, an incentive 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 Credit for chargeback discountThe final language of the invoice is expected to go into more detail.

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Stimulus Check # 3: What You Need to Know


How a proposed change to the dependent state could affect the third incentive payment

The third stimulus check could be dependents of all ages count towards the family total, for $ 1,400 eachFor families with children aged 17 (or 18, but living at home and still in high school, depending on local rules), a move to accept dependents of all ages can be a benefit, including those in child support scenarios .

How other qualification adjustments can affect your stimulus control

Ultimately, between now and the third approval, your situation may change, including your eligibility. There is talk of making the next stimulus payment ‘targeted’, with the end result fewer people generally qualifyingThe 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. When you file your taxes can also play an important role in whether or not a payment is received.

How can both parents receive incentive money for a child over whom they have joint custody?

In fact, many unmarried parents who share custody of their children would receive two payments for the same child during the first round of incentive checks, if they were to take alternate taxes on those children year after year.

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

Unlike the CARES Act, making it legal for states garnish the first stimulus check For people who owed more than $ 150 in arrears, a second check rule indicates that parents can keep their full payment even if they owe child support. In fact, the latest bill prohibits 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 reroute that payment to cover arrears of child support, 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, clerical errors were sometimes 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 must claim money that has been falsely garnished from their first payment.

For more stimulus check details, here’s what we know about one now third stimulus check for maximum $ 1,400 per person

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