YOUR stimulus check worth $1,400 could be taken out of your wages to pay for overdue child support.
If you owe child support money, your next stimulus check could be garnished in order to pay it back.
Karolyn Banks, managing associate and CPA at Drucker & Scacetti, said that overdue child support is one of the only reasons your $1,400 check can be seized.
She said: “It’s pretty much the only reason that your stimulus money can be garnished.
"Any other debts, such as back taxes, can’t be reasons to garnish your check."
And Americans may be getting their next stimulus check in less than a month.
The House of Ways and Means Committee passed the third round of checks last week, meaning that a vote from the House is expected on the week of February 22.
If the bill is passed and everything goes according to plan, Biden is set to sign it in March.
This means that the IRS could send the checks out just a few days later, with Americans receiving checks next month.
Days after signature, checks and debit cards go out in the mail or into banks accounts through direct deposit.
“Congress wants the money in our hands as soon as possible,” said Karolyn Banks.
Families could get $300 stimulus checks for kids under the age of six as part of Joe Biden's Covid relief package.
The proposal by Congressional Democrats would see monthly payments beginning in July and running through until the end of the year.
They have been adopted by Joe Biden as part of his $1.9 trillion stimulus proposal currently been mulled over by lawmakers.
The Child Tax Credit bill would provide $3,600 per child a year for children under the age of six and $3,000 for those aged six to 17, the Washington Post reports.
The legislation is spearheaded by Rep. Richard E. Neal (D-Mass.), chair of the House Ways and Means Committee.
“The pandemic is driving families deeper and deeper into poverty, and it’s devastating," said Neal in a statement.
"This money is going to be the difference in a roof over someone’s head or food on their table."
The lawmakers want the IRS to send monthly payments from July to December that would account for half the expanded credit.
The other half of the credit would then be refundable next year, on parents’ 2021 tax returns.
The current Child Tax Credit provides up to $2,000 per child under the age of 17 and families receive a single payment.
Source: Read Full Article