Your Child Support, the Federal Stimulus Payments and Tax Returns
Here are some important facts regarding your child support and the federal stimulus payment.
2nd and 3rd Stimulus Payments (COVID Relief Bill)
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.
