Will Child Support Take the Third Stimulus Check?

Will Child Support Take the Third Stimulus Check?

Are Stimulus Checks Protected from Garnishment?

The IRS reports 127 million Americans have received their third stimulus payments. Countless more have yet to be sent out, but in the meantime, people are welcoming the long-awaited stimulus check with open arms. The stimulus payment has helped people pay rent, feed their families, plan vacations, and more. It has restored some financial stability in people’s lives, ultimately.

Unfortunately, not everyone who gets the $1,400 stimulus check will get to spend it in full. Debt collectors view the third round of stimulus checks as an opportunity to collect the debts they’ve been seeking for so long. It may appear as if Americans are entitled to the full $1,400, but in reality, it depends on the circumstances.

For instance, your third stimulus check will NOT be garnished to cover debts owed to state or federal governments, including unpaid child support, taxes, and more. The IRS will not levy your third check, either. However, private debt collectors play by different rules.

While the first and second rounds of stimulus checks prohibited garnishment from debt collectors, the third round of payments CAN be garnished to pay back debt collectors. Your third stimulus check could also be garnished if u claim missing money from your third check as Recovery Rebate Credit on your tax return. In other words, if you file your taxes for 2020, the IRS can withhold some or all of your missing stimulus money issued as a Recovery Rebate Credit. Independent advocacy groups are working with the IRS to address this issue.

It is relieving to know that your third stimulus check cannot be garnished for child support, but keep an eye out for garnishment from private debt collectors. As you may already know, debt collectors are known to be persistent and harassing, so if you owe any private debts, you may not get access to the $1,400 payment.

If you have any further questions about how the third round of stimulus checks may impact you, give our attorneys a call at (866) 580-3089. We may be able to provide some clarity for your situation!