Stimulus checks for dependents were rife with issues, with some parents receiving no payment and other parents each getting $500 for the same child.
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While a second stimulus check is still being bandied around, awaiting resolution, you may still have questions about the finer points of the first payment, specifically how it allotted up to $1,200 per individual adult and $500 per “child” dependent. The eligibility rules concerning dependents are complex, especially for parents who are in child support situations. Knowing the nuances is important to making sure you got the right amount of money in the first check, anticipating how much you could get in the second and explaining if you didn’t get any stimulus money at all, even if you seemingly met all the qualifications.
See, child support situations have specific rules involving parents who owe support payments and those who receive financial support. Some parents who had debts for unpaid child support, for example, found that their stimulus checks (and sometimes their spouse’s) were garnished, while some parents who are separated or divorced but maintain joint custody have actually gotten two $500 checks per child, one for each parent. Some situations saw the wrong parent get the dependent check.
Read on to learn everything you need to know about how the IRS handled the first round of checks for child support situations and what that could spell for another stimulus payment, whenever it reaches you. (If you’re curious, here’s what we know about the next stimulus bill.) This story was updated recently.
States were allowed to take some or all of a person’s stimulus check payment to cover past-due child support bills.
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Your stimulus check could be garnished for child support
Although the government prevented debts like overdue student loans and back taxes from being taken from the first round of stimulus checks, one type of debt not covered by those protections was overdue child support, also known as “arrears” or “arrearage.” If you owe more than $150 in arrears, your state may reserve the right to garnish some or all of your first stimulus check, based on how much you owe.
And if you’re owed child support, you may receive money garnished from your child’s other parent, although how long it takes to get you depends on a lot of factors (the money has to process through the state, which will then issue it to you).
A second stimulus check may or may not be seized as well
Depending on which language is incorporated into the next stimulus bill — if one is passed at all — past-due child support may or may not be garnished again. The Heroes Act, a proposal that was passed in the House of Representatives but is not law, specifically prohibited reducing or offsetting the amount of stimulus checks to pay a child support debt. The Senate’s HEALS Act, which is also not law, allowed it. It’s unclear where the current stimulus bill under negotiation in Washington stands on the matter.
How to recoup money taken from your spouse’s check
If your nonparent spouse had money deducted from their stimulus check for child support that you owe, the IRS will issue another check to make up the difference.
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Although states had the right to garnish CARES Act stimulus check money from parents who owed back child support, the IRS, which issued the checks, says it didn’t mean to allow states to also deduct from a current (nonparent) spouse’s stimulus check as well.
If you are now married to someone who is not the child’s parent, and past-due child support was deducted from funds intended for your current spouse, the IRS directed taxpayers in August to fill out a Form 8379 (PDF) in order to receive a replacement check. However, since then, the agency says it is sifting through to find such errors and will be issuing replacement checks, although it did not provide a timeline for doing so. It appears the IRS is ironing out this particular wrinkle, so hopefully it won’t be a problem next time.
What happens if the $500 payment went to the parent who is owed child support?
Most of the time — but not always — the noncustodial parent pays child support to the custodial parent, who likely claims the child on their taxes. Sometimes, however, child support is owed even when parents share custody (when one parent earns significantly more than the other, for example). In many of those cases — but, again, not all — parents alternate claiming the child on their taxes (one in odd years, the other in even years, for example).
In situations like these, it’s possible that the $500 stimulus payments for dependents could be sent to the parent who’s owed back child support while the one who owes receives nothing. If that happens, the parent who did not receive the money can claim it on their 2020 tax return and receive it along with any refund due in 2021, according to Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center. “Double dipping,” in this instance, isn’t a glitch — both parents technically qualify for the $500 payment (for a total of $1,000 per child).
If you need help figuring out dependent payments, try contacting the IRS directly.
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What to do if you need help with your case
Like anything having to do with taxes, this stuff can get confusing pretty quickly. If you need help and don’t have an accountant on retainer to assist you, you can try looking for more information on the IRS website or giving the IRS a call. At the bottom of the IRS’ letter accompanying paper checks is a number you can call for more information: 800-919-9835. The IRS help number is 800-829-1040.
Stay up to date on the latest on stimulus bill negotiations here, find out how much you might qualify for with our payment calculator here and see when you might get a second stimulus check with our stimulus timeline here.