What are the third payment and child support rules?

Angela Lang / CNET

To the Families with children, the new stimulus bill offers a handful of financial benefits, including an extension of the Child tax credit and help with childcare costs. The auxiliary law just signed, however, can fill a loophole with the first two checks through which parents who share custody of a child receive a payment each. We’ll tell you what we know right now.

The new stimulus bill also helps families in other ways by offering more comprehensive guidelines on which children (and Adults) who are entitles to a third stimulus check of up to $ 1,400 per person. (Here is when your check might arrive, and how to track it.) To get an idea of ​​how much you might get, you can Calculate your stimulus check total.

We’ll help clear out the intricate details of child maintenance situations and stimulus testing – including the details that are on the final bill and what to do if you aren’t getting as much as you think you can get from the The first two exams.

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

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 demanding those 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 dependent on the return of the other parent (through Claiming the recovery discount. “Acknowledgment).” Phillips said the Treasury Department is expected to issue guidance on the situation.

How is the maintenance of children related to the third stimulus check?

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 claim it 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.

Running:
Look at that:

Stimulus Check 3: How Much Money You Get

2:32

New dependent guidelines open the authorization for stimulus money

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 Child Tax Credit

The Child tax credit distributes payments of up to $ 3,600 per child to taxholders 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 guidelines for managing prepayments to parents in split-custody arrangements, CNBC said.

How other permission adjustments 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.

The editorial content of this page is based solely on objective, independent reviews by our authors and is not influenced by advertising or partnerships. It was not provided or commissioned by third parties. However, we may receive compensation if you click on links to products or services offered by our partners.