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

For parents who share custody of their children, child support can complicate their lives. dunning check total and eligibility. To add to this, the rules of third payment have changed from the first two installmentsremoving a loophole that allowed some families to “double deduct” (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 to child tax credit that could reduce child poverty by 40%, according to a Center report on budget and policy priorities. It’s above $1,400 checks for eligible persons and the new bill broader definition of dependentwhich leads many families to receive more money this time.

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

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

Many parents who are unmarried and share joint custody of their children actually received two payments for the same child in the first round of stimulus checks, if they alternated years claiming those children on their taxes. That is, if one parent claimed a child in an even year and the other in an odd year, both could 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 2019 tax returns, but that doesn’t mean the double dip loophole has been fully closed. If you are a parent in a joint custody scenario like the one above and generally claim one dependent child in odd tax years, you may be able to get a $600 double dependent child payment inasmuch as tax credit on your return 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 that allows the third check. According Andy Phillipsdirector at The Tax Institute at H&R blockparents who are not married to each other and who alternate custody of an eligible dependent may not both be eligible to receive stimulus money for the same dependent this time -this.

Phillips said that due to guidelines Congress has included in the new law, “it is possible that if an advance payment is received by a relative for the dependent, no further payment may be made for the same person. dependent on the declaration of the other parent (by claiming reimbursement The credit).” Phillips said the Treasury Department should issue guidance on this situation, but at this time, that hasn’t happened yet.

How is child support related to the third stimulus payment?

With the third check, if you are behind on child support, you can still receive your full stimulus payment. This will not be redirected to cover late child support payments. This is true for all overdue 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.

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

Now Playing:
Look at this:

Reroll test 3: how much money you will receive


New dependent guidelines open up eligibility for third stimulus payment

The third raise test does dependents of all ages count in the family total, for $1,400 each. This time, an eligible dependent is anyone you claim on your taxesincluding an eligible child under the age of 19, a student under the age of 24 or a qualifying parent who relies on you for care.


The details of the stimulus check can make calculating your total takeout a bit confusing.

Sarah Tew/CNET

What to know about the 2021 child tax credit

The the child tax credit will spread the payments until $3,600 per child to taxpayers who qualify for the income threshold. According CNBC, parents of dependent children can use the same even/odd tax filing method to both receive payments. The U.S. Treasury and the IRS have yet to provide guidance on how they will administer advance payments to parents under shared custody arrangements, CNBC said.

How other eligibility changes affect your stimulus check

The new stimulus payment is ‘targeted’ which means that fewer people qualify overall. The checks are accompanied by a high income thresholdso that if you earn more than a certain amount — say, $120,000 as the head of household — you wouldn’t be eligible for any stimulus check, even if you have multiple dependents. The date you file your taxesand when the IRS processes that payment, could also play a significant role in whether or not you receive full or partial payment, or possibly none.

For more dunning check detailsHere is everything you need to know third stimulus check until $1,400 per person and how track your dunning check.

Comments are closed.