Child support and third stimulus check: we’ll clear up the confusing details

What are the rules for third payment and child support?

Angela Lang / CNET

For parents who share custody of their children, child support can add complications to their stimulus checksum and eligibility. To add to this, the rules of third payment have changed from the first two payments, by removing a loophole that allowed some families to “double down” (both parents receiving their own dependent payment for the same child), among other major changes.

However, there is good news for families with children. the new stimulus bill includes a large extension of the child tax credit which could reduce child poverty by 40%, according to a Center report on budgetary and policy priorities. It is in addition to the $ 1,400 checks for eligible people and the new bill broader definition of dependent, which leads many families to receive more money this time around.

Here are the details we have so far, including when your check might arrive, how to follow it and what if your the third stimulus check is missing. (Also, could there be a fourth stimulus control?) Read on as we sort out and explain the complicated details of child support situations and stimulus checks.

Is the loophole for shared custody and stimulus checks closed for the third payment?

Many unmarried parents who share joint custody of their children actually received two payments for the same child in the first round of stimulus checks, if they alternated the years claiming these children on their taxes. . In other words, if one parent claims a child for an even year and the other for an odd year, both can receive checks for that child. That’s because the IRS looked at two different tax years – 2018 and 2019 – to determine eligibility for the first check.

For the second stimulus check, the IRS only looked at the 2019 tax returns, but that doesn’t mean the double loophole has been closed entirely. If you are a parent in a joint custody scenario like the one above and typically apply for a dependent child in odd tax years, you may be able to get a duplicate dependent child payment of $ 600. as tax credit when you file and claim the child on your tax return, just as you would if you didn’t receive a second stimulus check when you were eligible.

This loophole could be closed in the new stimulus bill which authorizes the third check. According to Andy phillips, director at The Fiscal Institute at H&R Block, parents who are not married to each other and who alternate custody of an eligible dependent may not both be eligible to receive stimulus funds for the same dependent this time around.

Phillips said that due to Congressional directives included in the new law, “it is possible that if an advance payment is received by a parent for the dependent, no additional payment can be made for the same dependent. on the return of the other parent (by claiming the credit recovery reimbursement). ” Phillips said the Treasury Department should release guidance on this situation, but at this time it hasn’t yet.

How does child support relate to the third stimulus payment?

With the third check, if you are behind on child support, you can still receive your full stimulus payment. He will not be redirected to cover overdue support payments. This is true for any past due federal or state debt: your third payment is not subject to reduction or set-off. However, private debt collectors may be able to redirect your payment to cover a debt.

Too, IRS can withhold all or part of a stimulus payment if you claim it as Recovery rebate credit when you file your taxes. A independent taxpayer advocacy group within the IRS is working with the agency to resolve this issue.

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New guidelines for dependents open up eligibility for third stimulus payment

The third stimulus check does dependents of all ages count in the family total, for $ 1400 each. This time, an eligible dependent is anyone you the taxes, including a eligible child under the age of 19, a student under the age of 24 or a eligible parent who relies on you for care.


The details of checking stimuli can make calculating your take-out total a little confusing.

Sarah Tew / CNET

What you need to know about the 2021 child tax credit

the the child tax credit will distribute the payments until $ 3600 per child to tax holders who are eligible for the income threshold. According to CNBC, parents of dependent children may be able to use the same even / odd tax reporting method for both receiving payments. The U.S. Treasury and IRS have yet to offer guidance on how they will administer advance payments to parents under shared custody arrangements, CNBC said.

How Other Eligibility Changes Affect Your Stimulation Test

the the new stimulus payment is “targeted”, which means that less people qualify globally. Checks are accompanied by a net income threshold, so that if you made more than a certain amount – say, $ 120,000 as a head of household – you wouldn’t be eligible for any stimulus checkeven if you have multiple dependents. The date you file your taxes, and when the IRS processes this payment, could also play an important role in whether or not you receive a full or partial payment, or maybe none.

For more stimulus verification details, here’s all you need to know about third stimulus control until $ 1400 per person and how follow your stimulus check.

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About Kristina McManus

Kristina McManus

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