What are the third payment and child support rules?

Angela Lang / CNET

The new American rescue plan contains a handful of provisions designed to help Families with children, including an extension of the Child tax credit, financial support to cover childcare costs and more comprehensive guidelines for children – and Adults – – qualify for a third stimulus check value up to $ 1,400 per person. (Here is when your check might arrive, and how to track it.) The new rules close a gap with child support payments, but may leave a second gap open.

As with the first and second examThere are many questions about how much money parents who share custody of a child can and can get how your taxes play Your check total. In some cases, Calculation of your total stimulus check money can be straightforward. In other cases, complications may affect you and the child’s other parents.

We’ll explain the tricky details of maintenance situations and stimulus checks, including the details that will be on the final invoice (PDF) and what to do if you didn’t get as much as you thought the first two checks did.

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 claim it as a recovery discount credit when you file 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 up who qualifies for stimulus money

The third stimulus check makes Relatives of all ages count to the family total, e.g. $ 1,400 each. This time around, a qualified dependent is anyone you claim on your taxes, including a qualified child under 19, a student under 24, or a qualified relative who depends on you for care.

How other skill adjustments will affect your stimulus exam

The new stimulus payments are “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.

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

Sarah Tew / CNET

Is the joint custody stimulus review gap effective for the third review?

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 took turns from year to year and those children claimed their taxes. For this to work, one parent would claim one child in an even year and the other in an odd year, so they both received checks for the same 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 joint custody scenario like the one above and you typically have a dependent child in odd 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 2019 tax return, much like you would if you didn’t get a second stimulus check even though you are entitled to one.

Since the IRS uses 2020 taxes, if available, or 2019, if not, to determine your eligibility for the new payment, the chances are that this loophole will remain open to some. For the third stimulus check, payment should go to the parent who last claimed the child on their taxes (the IRS will use it either your tax return for 2019 or 2020, depending on what it has in the file). The parent who does not receive payment may be able to claim missing funds in their account Tax return 2021.

We reached out to the IRS and tax experts this time to clarify the rules.

What about the 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 guidance on how to manage prepayments to parents in split-custody arrangements, CNBC said.

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.