Stimulus Checks and Child Support: Who May Get An Extra $500 Per Kid From This IRS Loophole

BurnsLaw: Stimulus checks and child support: Who may get an extra $500 per kid from this IRS loophole

BurnsLaw: Stimulus checks and child support: Who may get an extra $500 per kid from this IRS loophole
With the announcement of stimulus checks to assist families facing financial hardship due to the COVID-19 pandemic, there have been many questions. Most parents thought that they were eligible for the extra $500 stimulus payment for each of their kids. However, this was not always the case.

Some situations like separation, divorce, and joint custody can further haze the lines of who is entitled to get extra money for their stimulus check. The final decision of what makes you eligible for getting the extra money is how you filed your tax returns.

Garnishment Of Stimulus Check

Any family law attorney Los Angeles can reveal that stimulus checks have opened up a new potential route of collecting child support arrears for custodial parents. While there is no official law about garnishing stimulus payments, the government is already taking action to do so.

Los Angeles child support lawyers will reveal that overdue child support was one of only a few garnishments that was approved for federal stimulus checks. The government actually prevented things like back taxes and overdue student loans from being garnished from stimulus checks. States were instructed that they may garnish the first stimulus check in the event that you own more than $150 in arrears.

What About Future Stimulus Checks?

Affordable child support attorneys Los Angeles are still waiting for an official determination of how future stimulus checks will be handled. As of right now, the HEROES Act is in discussion. Many child support lawyers for mothers believe that the wording of this Act will determine whether or not child support garnishment will happen.

The HEROS Act, which was passed by the House of Representatives, was worded to specifically prohibit the garnishment of stimulus checks for the purpose of paying past-due child support. However, the Senate’s HEALS Act does allow for garnishment. As negotiations are still underway in Washington, there is no way to know what will happen with the next stimulus check, if there is one.

Los Angeles child support lawyers do know that the CARES Act, which allowed garnishment, was not effectively initiated by the IRS. According to affordable child support attorneys Los Angeles, the IRS accidentally allowed states to deduct stimulus checks from non-parent spouses.

It’s recommended by child support lawyers for mothers that non-parent spouses file a Form 8379 directly with the IRS. The IRS is currently going through these forms and sending out replacement checks. As of right now, the IRS has not given an effective timeline for when all replacement checks will be mailed. It’s believed that the IRS will hash out this particular issue before the next round of stimulus checks comes out.

What About Joint Custody?

Joint custody brings up a whole other question regarding these stimulus payments. In some situations of joint custody, both parents file taxes for the child. However, one will do so in even years while the other will do so in odd years. If you need legal help for child support, you should talk with a family law attorney Los Angeles to determine if this type of filing is right for you.

In the case of joint custody, both parents may receive the $500 stimulus check. Unfortunately, if there was back child support owed, a parent’s stimulus check may have been garnished. In this scenario, they may claim the money as a tax refund on their 2020 tax return. If you need legal help for child support in this type of situation, it’s best to talk with an attorney.