What If I Owe Child Support Payments Back Taxes Money To Creditors Or Debt Collectors Or Federal Or State Debt
None of the three stimulus checks can be reduced to pay any federal or state debts and back taxes. Unlike the first stimulus check, your second and third stimulus check cannot be reduced if you owe past-due child support payments.
|Federal or State Debt|
If you are claiming the payments as part of your 2020 tax refund , the payments are no longer protected from past-due child support payments, creditor and debt collectors, and other federal or state debt that you owe . In other words, if you receive your first or second stimulus checks as part of your tax refund instead of direct checks, it may be reduced.
What If I Receive Both Social Security And Ssi
If you received Social Security benefits before May 1997, or if you receive both Social Security and SSI, the payment schedule is different. Instead of getting your payments on a Wednesday, you’ll receive your Social Security payment on the third day of each month and your SSI on the first day of each month.
However, those payment dates change if the first or third day of the month falls on a weekend or a holiday. Jan. 1 falls on a Sunday this year, so SSI recipients received their January payments a day early on Dec. 30 and their Social Security payment on Tuesday, Jan. 3. Because of this calendar configuration, SSI beneficiaries won’t receive an SSI check in January.
Stimulus Checks: Round 1
The first round of stimulus checks was created and authorized by the Coronavirus Aid, Relief, and Economic Security Act , which was signed into law by President Donald Trump on March 27, 2020. This historic stimulus package allocated funds for a variety of COVID-related relief programs, including loan assistance for small businesses and stimulus checks for many Americans, among other legislative changes.
For the first stimulus check, the maximum payment for an individual was $1,200 . Most Americans received the full amount, however, some will received less. The amount of your payment was based on the most recent federal tax return you filed .
RELATED: $1,200 Stimulus Checks Authorized by $2 Trillion CARES Act
You May Like: How To Get Missed Stimulus Check
Maine: $850 Direct Relief Payments
Gov. Janet Mills signed a supplemental budget on April 20 to authorize direct relief payments of $850 for Maine taxpayers.
Full-time residents with a federal adjusted gross income of less than $100,000 were eligible. Couples filing jointly received one relief check per taxpayer for a total of $1,700.
Taxpayers were eligible for the payment regardless of whether they owe income tax to the state.
Residents who didnt file a state tax return for 2021 could file through October 31 to claim their payment.
The one-time payments, which are being funded by the states surplus, started rolling out via mail in June to the address on your 2021 Maine tax return.
The supplemental budget also includes an increased benefit for Maines earned income tax credit recipients.
Read more: Everything You Need To Know About Maine Stimulus Checks
Fourth Stimulus Check Update
Biden’s American Rescue Plan Act, which created the third stimulus checks, did boost tax credits for most parents with children under 18, but only for the year 2021. Most parents and legal guardians will receive a tax credit of $3,600 for children under six, and $3,000 per child aged six through 17.
Half of that credit is coming in the form of monthly advance payments to parents beginning July 15 $300 per month for younger kids, and $250 for older ones. That’s similar to the monthly recurring checks that some legislators have called for.
The same law also retroactively exempted a large chunk of unemployment benefits paid out in 2020 from federal income tax. People who collected unemployment in 2020 and paid tax on it are getting thousands of dollars in tax-refund checks.
The American Rescue Plan Act also offers tax credits that cover all or most of the cost of a “Silver” health-insurance plan for six months under the Affordable Care Act, aka Obamacare. You’re eligible for this if you filed for unemployment benefits at any time in 2021, and if you don’t currently get health insurance through Medicare, Medicaid or someone else’s health plan.
Biden’s American Families Plan, which is separate from the American Jobs Plan, will seek to extend those tax credits, including the advance payments, through the end of 2025.
The American Families Plan would also mandate up to 12 weeks of paid parental leave and subsidies for childcare.
Recommended Reading: How Much Should I Have Received In Stimulus Checks
Sen Warnock On The New Child Tax Credit’s Impact
Looking back, the victories of Reverand Raphael Warnock and Job Ossoff in the Georgia Senate runn-off elections had an enormous impact on the US’ economic recovery. The two victories handed the Democrats control in the Senate and allowed President BIden to push through the American Rescue Plan, which included the third stimulus check and a complete overhaul of the Child Tax Credit.
Little over a week after the new credit was finally introduced, Sen. Warnock is on the phone to Georgia residents to find out how the monthly payments have affect their families.
Despite President Biden’s focus on the fate of his enormous infrastructure package, there are many in Washington and across the country who believe that a fourth stimulus check is needed to provide further support.
It has been four months since the last and largest round of stimulus checks for up to $1,400 for each eligible American were approved and evidence suggests that it may be time for another. After those payments hardship rates fell sharply, but the effects of those Economic Impact Payments appear to be fading.
Dc Hearing Focuses On Job Creation In Nepa
Last week, you might remember I told you about two bills I introduced to reauthorize and accelerate federal funding to reclaim abandoned mine lands in Northeastern Pennsylvania and across America. Well, I’m keeping the momentum going.
During a Congressional hearing yesterday focusing on my two bills, a fellow Northeastern Pennsylvanian and I talked about how this reclamation work is so important for our area’s economy and environment. We have more than 300 dangerous, unsightly and polluting AML sites in our area alone and the work to clean them up could go unfinished without more federal funding. Together, my bills will continue and accelerate funding for us to transform hazardous mine sites into opportunities for job growth.
Take a look:
Recommended Reading: How Do I Qualify For $600 Stimulus In California
A Fourth Stimulus Check In 2022 To Deal With Inflation Pressures
There has plenty of talk of a fourth stimulus check in 2022, originally as a relief payment in Bidens build Back Better Bill and now as a way to offset higher costs many consumers are seeing due to record inflation.
However progress on a 4th stimulus check has stalled in Congress due to lack of agreement among Democrats and Republicans and what they can sell to their constituents ahead of the upcoming mid-term elections.
A 2022 Gas Stimulus?
With rising gas prices, many states are providing gas tax holidays which save drivers a few cents at the pump. Some states and even Congress are also considering a gas relief stimulus check which will pay families up to $400 p/month through 2022.
With the economy rebounding strongly, higher inflation and unemployment claims falling, it was hard for most Democrats in Congress to justify spending billions of dollars on even more stimulus payments.
Some states like California however, are making state specific stimulus payments to provide inflation relief for lower income workers which may be replicated in other states.
These are being done via additional tax rebates and immediate payment for lower income workers who filed a recent tax return.
The IRS has also completed making millions ofplus-up or catch-up stimulus payments to those who have filed a recent tax returns.
All plus-up and catch-up payments for past credits has now completed. You will need to claim them via filing a tax return.
Find Out Which Payments You Received
To find the amounts of your Economic Impact Payments, check:
Your Online Account: Securely access your individual IRS account online to view the total of your first, second and third Economic Impact Payment amounts under the Economic Impact Payment Information section on the Tax Records page.
IRS EIP Notices: We mailed these notices to the address we have on file.
- Notice 1444: Shows the first Economic Impact Payment sent for tax year 2020
- Notice 1444-B: Shows the second Economic Impact Payment sent for tax year 2020
- Notice 1444-C: Shows the third Economic Impact Payment sent for tax year 2021
Letter 6475: Through March 2022, we’ll send this letter confirming the total amount of the third Economic Impact Payment and any plus-up payments you received for tax year 2021.
You will need the total payment information from your online account or your letter to accurately calculate your Recovery Rebate Credit. For married filing joint individuals, each spouse will need to log into their own online account or review their own letter for their half of the total payment.
You May Like: Irs.gov Stimulus Check Sign Up
What If I Havent Gotten My Stimulus Check Yet
First, head over to the governments site and sign in to your account to check on your payment status. If it shows the stimulus check was issued to you but you havent gotten it yet, you can run a payment trace to track it down. If the check wasnt cashed, the IRS will reverse the payment, and youll be able to claim it on your taxes. You can do this through the Recovery Rebate Credit.
If the check was cashed , youll have to make a claim and go through a whole process to get your stimulus money. That really stinks. Sorry in advance if you fall into that category. But with any luck, they should be able to straighten things out for you.
Federal Funding Retention Bonuses
Several states have decided to use some of the federal money as retention bonuses for their teachers, as most schools are expected to open in-person this year, AS reported. The bonuses also act as a thank you for the particularly rough school year most teachers had to endure.
Florida allocated a $1000 check to most teachers and administrators, but controversy arose when Governor DeSantis notably left some educators out. The situation is still developing.
Find: 7 Money-Saving Tips for Teachers Georgia
Georgia has one of the more generous plans, with Governor Kemp authorizing all full-time teachers and administrators to receive $1,000 checks, with part-time teachers receiving $500. There is a plan underway to provide for pre-K educators as well.
Although a retention bonus like Georgia and Florida has not yet been outlined, Michigan sent out $500 hazard pay bonuses to its teachers earlier in the year.
Tennessees state government passed a bill in June that scrapped an expected 2% raise and replaced it with a $1,000 check it labeled as a hazard pay bonus to full-time teachers. Part-time teachers get $500. Eligible individuals will receive their checks by the end of the year.
Find: 25 Experts Predictions on When We Will Bounce Back From COVID-19
More From GOBankingRates
You May Like: 4th Stimulus Check For Social Security Disability Recipients
Oregon: Direct Payments Of $600
In March 2022, the Oregon legislature voted to approve one-time $600 payments to some residents. Taxpayers who received the earned income tax credit on their 2020 state tax return, and who lived in Oregon for the last six months of 2020, were eligible to receive one payment per household.
The state used federal pandemic aid to provide these direct payments to low-income residents, and more than 236,000 households received a payment. All payments were distributed by direct deposit or mailed check by July 31, 2022.
How Will The Stimulus Check Payments Be Made
The IRS has confirmed that payments for most working Americans are expected to be calculated and deposited or mailed via check based on 2018 or 2019 federal tax filing payment details. Most people wont need to take any action and the IRS will calculate and automatically send the economic stimulus payment to those eligible. The Treasury department, under which the IRS falls has also created a website/portal for those who are not required to file U.S. income taxes or who have to change payment information .
For those who have not yet filed their return for 2019, the IRS will use information from their 2018 tax filing to calculate the payment. The economic impact payment will be deposited directly into the same banking account reflected on the last valid return filed. So if your 2018 information is out of date or your income situation changed in 2019, make sure you file, even if you have no taxes due .
Don’t Miss: Who Is Not Eligible For Stimulus Checks
How Many Stimulus Checks Have There Been
If youre like most people, everything thats happened since March 2020 is a blurincluding how many stimulus checks there were and when the checks went out. Heres a quick reminder.
First stimulus check: March 2020 $1,200
Second stimulus check: December 2020 to January 2021 $600
Third stimulus check: March 2021 $1,4004
Georgia: $250 Rebate Payments
Thanks to a historic state budget surplus, Georgia residents who filed both their 2020 and 2021 tax returns were eligible to receive rebate payments based on their tax filing status:
- Single filers: Maximum $250
- Head of household: Maximum $375
If you owed income tax or other payments to the state, such as delinquent child support payments, you may have received a smaller rebate. Partial-year residents may also have received a smaller rebate.
Eligible recipients who filed their 2021 taxes by April 18 should have received their refund in August.
Georgia taxpayers can learn more via the Georgia Department of Revenue.
Also Check: Who Receives The Third Stimulus Check
What Is The New Child Tax Credit Amount
Heres how the numbers break down: The American Rescue Plan bumps the Child Tax Credit up to $3,000 for children ages 617 and $3,600 for children under age 6.3 Expecting a baby in 2021? First of all, congrats! And heres some more good news for youbabies born in 2021 will qualify for the full $3,600. Have a college student? Parents can receive a one-time payment of $500 for each full-time college kid ages 1824.4
So, for a family that has three children , heres how it all breaks down:
Lets say they have three kids that are ages 12, 7 and 4 and a household income of $72,000 a year. Their new Child Tax Credit would be $9,600.
But remember, instead of applying the full amount of the credit to income taxes they might owe or getting a refund after they file their taxes, parents can get the credit up front in monthly payments of $250 for each qualifying child .5 So that family of three in our example would get $800 a month from July through December. Wow!
Right now, this change would be only for 2021but theres talk in Congress and the White House to make it a permanent thing for the next five years under Bidens American Families Plan. Yep, there are a lot of plans and acts to keep straight these days.
Will There Be An Irs 4th Stimulus Check
It looks unlikely that there will be another stimulus payment from the federal government at this point. While some politicians in Congress are still pushing for more relief, most are of the belief that we probably wont see anymore COVID stimulus checks. At least not unless there is another wave that causes more lockdowns or closures.
Although the federal government may be unlikely to act, some states are continuing to provide additional relief to their residents through stimulus payments and tax rebates. There are also many states looking at providing gas stimulus checks to combat the rising oil prices. Make sure you stay updated on any developments that might mean more money for you!
You May Like: Has The Stimulus Checks Been Approved
Stimulus Checks Could Be Coming To These 4 States Soon
The last federal stimulus check went out in 2021, but individual states are starting to come through with financial help for residents as record inflation continues to affect many Americans bottom lines and budgets.
Important: 5 Things You Must Do When Your Savings Reach $50,000
As GOBankingRates reported earlier this week, 13 states are currently offering stimulus money to constituents. Among them are California, where a Middle-Class Tax Refund provides up to $1,050 per single tax filer, and Massachusetts, where a new law called Chapter 62F declares the state has to refund budget surpluses back to residents. Residents will get back around 14% of the state income taxes they paid in 2021.
Other states currently offering stimulus payments include Colorado, Delaware, Hawaii, Illinois, Indiana, Minnesota, New Jersey, Pennsylvania, Rhode Island, South Carolina and Virginia. Many others provided financial support earlier this year.
A few more states may soon announce stimulus packages, income tax rebates and gas rebates, reported Forbes, noting that lawmakers are still debating proposed legislation. Heres where the next round of payments may be happening.
Mayors Using Stimulus Money To Provide Basic Income
Mayors for a Guaranteed Income is a coalition of mayors from across the country advocating for a guaranteed income, direct, recurring cash payments. Several are using federal stimulus money from the American Rescue Plan to provide monthly checks to low-income resident of between $500 and $1,000 with no strings attached.
In conjunction with a University of Pennsylvania-based research center they are collecting data to see if such programs reduce inequality and produce more jobs. They plan to use their findings to lobby the White House and Congress to enact such programs on a national level, starting with extending the 2021 Child Tax Credit which will send parents up to $300 per child per month. The program expires at the end of December if nothing is done.
Read Also: Paying Back Stimulus Money 2021