Your landlord can’t make you hand over yourto pay for rent and the IRS won’t seize it for back taxes. You can your first ( ) direct payment, but there are a few exceptions to be aware of that could result in being garnished.
You(if one is ), but if you know you for and still find yourself waiting to receive a , or , the IRS may have mistakenly overlooked you — or you may Certain groups who are eligible for that first payment, such as some , , and those who are , must take an extra step to
Below, we’ve identified the situations that could cause stimulus payments to be garnished. This story was recently updated.
Unpaid debts and your stimulus check
The CARES Act includes protections to keep state and federal agencies from taking all or part of your stimulus check to cover most debts owed to the government (see below for a big exception). Private banks and creditors may, however, be able to seize a payment to cover an outstanding debt. Some states, such as California, have issued orders forbidding banks and creditors from garnishing your stimulus check.
Although negotiations on a second rescue package are currently at a standstill,would in most cases prohibit creditors and banks from seizing the payment to pay debts. Likewise, the IRS said you are not required to hand your check over to care facilities, like nursing homes, or to landlords to cover expenses.
How overdue child support affects your direct payment
The CARES Act blocked state and federal agencies from taking a stimulus check to cover government debts such as an income tax debt, but it does not exclude seizing a payment to cover past-due child support.
If, only the spouse who owes child support will have the payment garnished. According to the IRS, if a spouse does not owe child support, they will receive their portion of the payment and do not need to take any action to receive it.
In some cases, a mistake has led to the government garnishing all or part of the stimulus check meant for the current spouse of the parent paying child support (who isn’t the child’s other parent). Here’s.
A Senate Republicanwould continue to garnish overdue child support (this proposal is not law). Under the Democratic package, those who owed support would still receive a payment.
Do you have to pay back your stimulus money?
a payment you get this year won’t reduce your tax refund in 2021 or increase the amount you owe when you file your 2020 tax return. You also won’t have to repay a stimulus payment if you qualify for a lower amount in 2021. (Here how .)
For more information, here’s what we know about theon a second rescue bill and what a stimulus package from presidential candidate (and former Vice President) Joe Biden .