If you meet the requirements for a CARES Act that authorized those payments includes a few exceptions that allows the federal government, bank or creditor to garnish your in a few situations — more on that below., in most cases the money is yours to as you want after you receive it. But the
Do note that if youfor and still haven’t received a , or from the IRS, you may have mistakenly been overlooked or you may . Certain groups who are eligible for that first payment, such as some , , and those who are , can .
Read on for more information how stimulus checks may be seized. We recently updated this story.
Landlords and nursing homes can’t seize your check
The CARES Act from March prevents a landlord or care facility from demanding you hand over your check to meet a payment. If someone pressures you or threatens you with eviction, make sure you know your rights in regards to stimulus checks and to the through the end of the 2020.
The IRS won’t claim it for back taxes
Stimulus checks are protected from taxation. You, and the IRS will not garnish it to pay for taxes that you owe. If you want to use the money that way, it is, of course, up to you.
If you owe a car payment, your stimulus money won’t be taken
Likewise, people who are worried about car repossession if they can’t make a payment are in most cases not obligated to hand over any stimulus money, unless it falls into an exception below. Here’s what we know about.
These businesses can take your stimulus money
Private banks and creditors may be able to seize a payment to cover an outstanding debt. Some states, such as California, have issued orders forbidding banks and creditors from garnishing your stimulus check. If you’re worried about this happening or you want to challenge an action that’s occurred, first check to see if your state has a protection in place that would make a seizure of your check illegal.
Althoughare currently at a standstill, the (which includes ) would in most cases prohibit creditors and banks from seizing the payment to settle a debt.
Overdue child support is another exception
The CARES Act blocked state and federal agencies from taking a stimulus check to cover government debts such as an income tax debt, but it does not exclude seizing a payment to cover past-due child support.
If According to the IRS, if a spouse does not owe child support, they will receive their portion of the payment and do not need to take any action to receive it., only the spouse who owes child support will have the payment garnished.
In some cases, a mistake has led to the government garnishing all or part of the stimulus check meant for the current spouse of the parent paying child support (who isn’t the child’s other parent). Here’s.
Can the IRS make you return your stimulus money?
a payment you get this year won’t reduce your tax refund in 2021 or increase the amount you owe when you file your 2020 tax return. You also won’t have to repay a stimulus payment if you qualify for a lower amount in 2021. (Here how .)
For more information, here’s what we know about theon a second rescue bill and what a stimulus package from President-elect Joe Biden .