CHILD SUPPORT & STIMULUS PAYMENTS
Economic stimulus payments under the CARES Act are scheduled to be sent to Americans during April. Find out how the payment is determined, how it is paid, and what happens if you have divorced since you filed your last tax return. But, what if you owe child support arrears? Will you still get your stimulus check?
WILL I GET MY CHECK IF I OWE BACK CHILD SUPPORT?
If you owe back child support and are on the Treasury’s Offset list for past-due child support, you will not get your stimulus check if you owe child support arrears. Instead, the government relief checks will be garnished and applied to your delinquent child support payments. You can find out if you are on the Treasury Offset list by calling 800-304-3107.
WHAT IF I AM FILING JOINTLY WITH MY NEW SPOUSE
If you owe child support and are filed jointly with your new spouse, the entire stimulus payment may get withheld due to your child support arrears. When filing joint tax returns, the spouse who does not owe child support can file an “Injured Spouse Allocation” form* and may be allowed to keep their half of the tax refund. However, even if the form has already been filed successfully, the entire amount of the stimulus payment may be withheld and applied to past-due child support payments.
If your employment has been affected due to shelter-in-place orders, please see our blog post on Child Support Concerns during the COVID-19 health pandemic.
* This publication does not and is not intended to provide legal, tax or accounting advice. Readers should consult their tax advisors concerning the application of tax laws to their particular situations.