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Third Incentive Checks and Child Support: Everything You Need to Know About the New Payment

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

Angela Lang / CNET

The new incentive account has several amenities designed to help families with children, including an extension to the Child tax creditIt also includes financial assistance to cover childcare costs, and broader guidelines on which children (and adults) to be qualify for a third stimulus check of maximum $ 1,400 per person(Here is when your check may arrive, and how to track it.) The new rules close a loophole with child support payments and possibly close a second.

There are still many questions about how much money parents who share custody of a child can receive and how much money how your taxes affect your check total. Calculation of the total of your stimulus control can be simple, but complications can affect you and the child’s other parent.

We’ll help explain the complicated details of child support situations and incentive checks – including the details revealed in the final bill and what to do if you didn’t get as much as you think you should from the first two checks

How is child benefit related to the third stimulus check?

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 applies to overdue federal or state debts: 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


New dependent guidelines make it possible to qualify for incentive money

The third stimulus check makes dependents of all ages count towards the family total, because $ 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.

Is the loophole on joint custody control in place for the third payment?

Many parents who are unmarried and who share joint 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 claimed a child in an even year and the other in an odd year, both of them received 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 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 relief when you submit 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.

However, the new incentive bill may close that loophole for the third check. According to Andy Phillips, director of The Tax Institute at H&R Block, parents who are not married to each other cannot both receive incentives for the same dependent this time.

Phillips said that because of guidelines that 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.


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

Sarah Tew / CNET

What you need to know about the child discount

The Child tax credit distributes payments of up to $ 3,600 per child to tax holders who qualify for the income threshold. According 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 and the IRS have not yet provided advice on how they will manage prepayments to parents in split custody schemes, CNBC said.

How Other Fitness Adjustments 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 – you 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 significant 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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