What are the third payment and child support rules?

Angela Lang / CNET

For parents who share custody of their children, child support can bring some complications Stimulus Check Total and authorization. Then there are the rules for that third payment have changed of the first two paymentsAmong other things, it fixed a loophole that allowed some families to “double dip” (both parents received their own dependent payment for the same child).

However, there is some good news for you Families with children. The new stimulus bill includes a great extension of the Child tax credit This could reduce child poverty by 40%, according to a report by the Center for Budgetary and Policy Priorities. That’s on top of that $ 1,400 checks for qualified people and the new bills broader definition of dependentAs a result, many families will receive more money this time.

Here are the details we’ve got so far, including when your check might arrive, how to track it and what to do when your The third stimulus check is missing. (Plus, there might be one fourth stimulus check?) Read on as we sort out and explain the intricate details of child support situations and stimulus testing.

Has the gap for joint custody and stimulus reviews been closed for the third payment?

Many parents who are not married and share joint custody of their children actually received two payments for the same child in the first round of stimulus testing if they alternated years of collecting these children on their taxes. In other words, if one parent claims a child in an even year and the other claims an odd year, they could both get checks for that child. This is because the IRS examined two different tax years – 2018 and 2019 – to determine eligibility for the first audit.

On the second stimulus review, the IRS only reviewed the 2019 tax returns. However, this does not mean that the double immersion completely closed the gap. If you are a parent in a custody scenario like the one above and typically have a dependent child in irregular tax years, you may be able to receive a double child-related payment of $ 600 Tax credit on filing and claim the child on your tax return, much like you would if you weren’t given a second stimulus check even though you are entitled to one.

This loophole could be filled in the new stimulus bill that approves the third review. According to Andy Phillips, director of the Tax Institute at H&R Block, parents who are not married to each other and take turns taking custody of an eligible loved one may not both be eligible for stimulus money for the same loved one this time.

Phillips said, based on the guidelines that Congress put in the new law, “It is possible that if one parent receives an advance payment for the dependent parent, no additional payment can be made for the same subject to the return of the other parent ( by taking advantage of the restoration discount) Recognition). ” Phillips said the Treasury Department is expected to issue guidance on the situation, but not at this point in time.

How is child support related to the third stimulus payment?

The third check allows you to receive your full stimulus payment if you are overdue for child support payments. It will not be redirected to cover late support payments. This applies to overdue federal or state debt: your third payment is not subject to any reduction or set-off. However, private collection agencies may be able to reroute your payment to cover a debt.

Also, the IRS may withhold all or part of a stimulus payment if you choose to do so as a claim Recovery Discount Credit when filing your taxes. An independent taxpayer advocacy group within the IRS is working with the agency to resolve this issue.

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Stimulus Check 3: How Much Money You Get

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New dependent policies open the authorization for the third stimulus payment

The third stimulus check makes Relatives of all ages count to the family total, e.g. $ 1,400 each. This time, a qualifying addict is anyone you claim TaxesThis includes a qualified child under the age of 19, a student under the age of 24, or a qualified relative who will depend on you for care.

Stimulus checking details can make working out your takeaway total a little confusing.

Sarah Tew / CNET

What you should know about the 2021 child tax credit

The The child tax credit spreads the payments of up to $ 3,600 per child to tax holders who qualify for the income threshold. According to CNBC, parents of dependent children may be able to use the same even / odd tax filing method to receive both payments. The U.S. Treasury Department and IRS have not yet offered guidance on how to manage prepayments to parents in split-custody arrangements, CNBC said.

How other permission changes affect your stimulus review

The new stimulus payment is “targeted” which means, that Overall, fewer people are qualifying. The checks come with one sharp income limitSo if you go over a certain amount – say, $ 120,000 as a head of household – you wouldn’t be Entitled to Stimulus Check Moneyeven if you have multiple dependents. The date You file your taxesand when the IRS processes that payment it could also play an important role in whether or not you receive full or partial payment.

For more Stimulus check detailsHere is everything to know third stimulus check for up to $ 1,400 per person and how Track Your Stimulus Check Money.