Some $500 coronavirus stimulus checks for kids may not arrive until next year, IRS says

Contents
  1. Your Child Sup­port, the Fed­er­al Stim­u­lus Pay­ments and Tax Returns
  2. I did not receive my stimulus payments from the IRS and am expecting to receive them in my tax return, can my tax return and stimulus payments be withheld by the IRS for unpaid child support debt? 
  3.   Will the federal stimulus rebate payments be withheld by the IRS for unpaid child support debt?  
  4. If I owe child support, will my tax return be applied to my child support arrears?   
  5. If I owe child support, will I be notified that my tax return is going to be applied to my child support arrears?  
  6. What if I am married to someone who owes child support, will my  tax return be applied to the child support arrears they may owe?  
  7. If I am the custodial parent, and I’m currently receiving or have ever received TANF or Medicaid for my child, will I receive any money from a tax return intercepted by the federal government from the noncustodial parent on my case?  
  8. If I am the custodial parent, and I’ve never received TANF or Medicaid for my child, will I receive any money from a tax return intercepted by the federal government from the noncustodial parent on my case?    
  9. How long will it take for me to receive the payment? 
  10. IRS takes new steps to ensure people with children receive 0 Economic Impact Payments
  11. Used the Non-Filers tool after May 5? No action needed
  12. Didn't use the IRS Non-Filers tool yet? Provide information by September 30
  13. Other Non-Filers can still get a payment; must act by October 15
  14. Other important notices involving Economic Impact Payments:

Your Child Sup­port, the Fed­er­al Stim­u­lus Pay­ments and Tax Returns

Some $500 coronavirus stimulus checks for kids may not arrive until next year, IRS says

Your 2nd stimulus payment (approved January 2021) and 3rd stimulus payment (approved March 2021) cannot be garnished to pay child support. Under the CARES Act, your 1st stimulus payment  (approved April 2020) could be garnished, but the rule was changed for the 2nd and 3rd payments. 

I did not receive my stimulus payments from the IRS and am expecting to receive them in my tax return, can my tax return and stimulus payments be withheld by the IRS for unpaid child support debt? 

  • Yes, if you owe more than $150 in a public assistance case or more than $500 in a non-public assistance case, federal law requires that the IRS withhold some or all of your unpaid stimulus payment and tax return, when you file your taxes.  

 
Will the federal stimulus rebate payments be withheld by the IRS for unpaid child support debt?  

  • Only the first stimulus payment (approved April 2020) was subject to be withheld for unpaid child support debt. The 2nd (approved January 2021) and 3rd (approved March 2021) stimulus payments are not subject to be withheld for unpaid child support debt.   

If I owe child support, will my tax return be applied to my child support arrears?   

  • Maybe.  Federal law and regulations determine when federal payments are intercepted and applied to child support arrears.   
  • If TANF has been received for your child, the total amount of past due support on all of your child support cases must be at least $150  
  • If TANF has not been received for your child, the total amount of past due support on all of your child support cases must be at least $500  

If I owe child support, will I be notified that my tax return is going to be applied to my child support arrears?  

  • Yes.  You were sent a notice when your case was initially submitted for federal tax refund offset. The federal government should send an offset notice to you when your stimulus rebate payment has actually been intercepted. The notice will tell you that your tax return has been applied to your child support debt and to contact the Child Support Division if you believe this was done in error.  

What if I am married to someone who owes child support, will my  tax return be applied to the child support arrears they may owe?  

  • Yes, unless you are eligible for relief.  If you do not owe child support but you are married to someone who owes child support, you may need to file an Injured Spouse Claim and Allocation - Form 8379 
  • In some instances, the IRS offsets a portion of the payment sent to a spouse who filed an injured spouse claim if it has been offset by the non-injured spouse’s past-due child support. The FAQ on the IRS stimulus FAQ www.irs.gov/coronavirus/economic-impact-payment-information-center website states: The IRS is aware that in some instances a portion of the payment sent to a spouse who filed an injured spouse claim with his or her 2019 tax return (or 2018 tax return if no 2019 tax return has been filed) has been offset by the non-injured spouse’s past-due child support. The IRS is working with the Bureau of the Fiscal Service and the U.S. Department of Health and Human Services, Office of Child Support Enforcement, to resolve this issue as quickly as possible. If you filed an injured spouse claim with your return and are impacted by this issue, you do not need to take any action. The injured spouse will receive their unpaid half of the total payment when the issue is resolved. 

If I am the custodial parent, and I’m currently receiving or have ever received TANF or Medicaid for my child, will I receive any money from a tax return intercepted by the federal government from the noncustodial parent on my case?  

  • Maybe.  Federal law dictates how monies received by a state child support agency under the Federal Tax Refund Offset Program are distributed. In Texas, federal tax offsets are applied first to assigned arrears, or arrears owned by the state, and then to arrearages owed to the family.  If there is money owed to the state in your case, the intercept stimulus payments up to the amount owed to the state will be retained by the state.  The remainder of money will be sent to you, up to the amount of unassigned arrears owed to you by the noncustodial parent. The amount of the money you are entitled to receive will depend on a number of factors, including the amount of the tax refund intercepted, the amounts owed to you in your case, and the number of other child support cases in which the noncustodial parent owes child support arrears.  You must also have a full-service case open with the Child Support Division to be entitled to receive any monies from an intercepted tax return.   

If I am the custodial parent, and I’ve never received TANF or Medicaid for my child, will I receive any money from a tax return intercepted by the federal government from the noncustodial parent on my case?    

  • Maybe.  If the noncustodial parent owes you child support arrears and the total arrears on all of the noncustodial parent’s cases meets the threshold amounts indicated in Questions #2, then you should be entitled to receive monies intercepted from the noncustodial parent’s tax return. The amount of the money you receive will depend on a number of factors, including the amount of the tax return intercepted, the amounts owed to you in your case, and the number of other child support cases in which the noncustodial parent owes child support arrears. You must also have a full-service case open with the Child Support Division to be entitled to receive any monies from an intercepted federal tax return. 

How long will it take for me to receive the payment? 

  • If the non-custodial parent filed an individual return the payment will disburse immediately, similar to regular child support payments. 

Источник: https://www.texasattorneygeneral.gov/child-support/covid19/your-child-support-federal-stimulus-payments-and-tax-returns

IRS takes new steps to ensure people with children receive $500 Economic Impact Payments

Some $500 coronavirus stimulus checks for kids may not arrive until next year, IRS says

IR-2020-180, August 14, 2020

WASHINGTON — The Internal Revenue Service continues to look for ways to help people who were unable to provide their information in time to receive Economic Impact Payments for their children. As part of that effort, the Internal Revenue Service announced today it will reopen the registration period for federal beneficiaries who didn't receive $500 per child payments earlier this year.

The IRS urges certain federal benefit recipients to use the IRS.gov Non-Filers tool starting August 15 through September 30 to enter information on their qualifying children to receive the supplemental $500 payments.

Those eligible to provide this information include people with qualifying children who receive Social Security retirement, survivor or disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and Veterans Affairs Compensation and Pension (C&P) benefits and did not file a tax return in 2018 or 2019.

The IRS anticipates the catch-up payments, equal to $500 per eligible child, will be issued by mid-October.

“IRS employees have been working non-stop to deliver more than 160 million Economic Impact Payments in record time. We have coordinated outreach efforts with thousands of community-based organizations and have provided materials in more than two dozen languages,” said IRS Commissioner Chuck Rettig.

“Given the extremely high demand for EIP assistance, we have continued to prioritize and increase resource allocations to eligible individuals, including those who may be waiting on some portion of their payment.

To help with this, we are allocating additional IRS resources to ensure eligible recipients receive their full payments during this challenging time.”

Used the Non-Filers tool after May 5? No action needed

For those Social Security, SSI, Department of Veterans Affairs and Railroad Retirement Board beneficiaries who have already used the Non-Filers tool to provide information on children, no further action is needed. The IRS will automatically make a payment in October.

Didn't use the IRS Non-Filers tool yet? Provide information by September 30

For those who received Social Security, SSI, RRB or VA benefits and have not used the Non-Filers tool to provide information on their child, they should register online by Sept.

30 using the Non-Filers: Enter Payment Info Here tool, available exclusively on IRS.gov.

Remember, anyone who filed or plans to file either a 2018 or 2019 tax return should file the tax return and not use this tool.

For those unable to access the Non-Filers tool, they may submit a simplified paper return following the procedures described in this FAQ on IRS.gov.

Any beneficiary who misses the September 30 deadline will need to wait until next year and claim it as a credit on their 2020 federal income tax return.

Those who received their original Economic Impact Payment by direct deposit will also have any supplemental payment direct deposited to the same account. Others will receive a check.

Eligible recipients can check the status of their payments using the Get My Payment tool on IRS.gov. In addition, a notice verifying the $500-per-child supplemental payment will be sent to each recipient and should be retained with other tax records.

Other Non-Filers can still get a payment; must act by October 15

Though most Americans have already received their Economic Impact Payments, the IRS reminds people with little or no income and who are not required to file tax returns that they remain eligible to receive an Economic Impact Payment.

People in this group should also use the Non-Filers' tool – but they need to act by October 15 to receive their payment this year.

Anyone who misses the October 15 deadline will need to wait until next year and claim it as a credit on their 2020 federal income tax return.

Available in both English and Spanish, the Non-Filers tool is designed for people with incomes typically below $24,400 for married couples, and $12,200 for singles. This includes couples and individuals who are experiencing homelessness.

People can qualify, even if they don't work or have no earned income. But low- and moderate-income workers and working families eligible to receive special tax benefits, such as the Earned Income Tax Credit or Child Tax Credit, cannot use this tool.

They will need to file a regular return by using IRS Free File or by another method.

Other important notices involving Economic Impact Payments:

Spouse's past-due child support. The IRS is actively working to resolve cases where a portion or all of an individual's payment was taken and applied to their spouse's past-due child support. People in this situation do not need to take any action. The IRS will automatically issue the portion of the EIP that was applied to the other spouse's debt.

Spouses of deceased taxpayers. Upon enactment of the CARES Act, the IRS initially implemented the legislation consistent with processes and procedures relating to the 2008 stimulus payments (which were transmitted to deceased individuals).

 After further review this spring, Treasury determined that those who died before receipt of the EIP should not receive the advance payment. As a result, the EIP procedures were modified to prevent future payments to deceased individuals. The cancellation of uncashed checks is part of this process.

Some EIPs to spouses of deceased taxpayers were cancelled. The IRS is actively working on a systemic solution to reissue payments to surviving spouses of deceased taxpayers who were unable to deposit the initial EIPs paid to the deceased and surviving spouse.

For EIPs that have been cancelled or returned, the surviving spouse will automatically receive their share of the EIP.

The IRS has taken steps to get payments to as many eligible individuals as possible. A recent oversight report confirmed that the IRS correctly computed the amount due for 98% of the payments issued.

However, the IRS acknowledges the significance for those who have not yet received their full payment.

The IRS continues to look at ways to help people get the right amount of the payment and will continue to provide updates on additional enhancements as they occur.

For more Information on the Economic Impact Payment, including updated answers to frequently-asked questions and other resources, visit IRS.gov/coronavirus.

These online resources are helpful for people who might not understand (i) why the payment received is less than $1,200, (ii) that they are ineligible to receive a payment, or (iii) why they may not be eligible to receive the $500 per qualifying child payment.

Источник: https://www.irs.gov/newsroom/irs-takes-new-steps-to-ensure-people-with-children-receive-500-economic-impact-payments

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