The IRS neededto start making the President Donald Trump . Tuesday, the IRS announced it would start making direct-deposit payments Dec. 29, with checks going out in the mail beginning Wednesday, Dec. 30.
Sunday evening, Trumpthat includes a . The provides direct payments of up to $600 per and . The IRS will continue to — by or in the mail — through the middle of January.
Though you’re normally entitled to use your, you should know about a few situations where your check could be taken by a state government, bank or creditor. Be aware of your rights so you know and who can and can’t legally take your .
We recently updated this story.
The government won’t tax your first and second stimulus check
The IRS doesn’t consider stimulus payments to be income, which means you, and the IRS won’t garnish it to pay for any back taxes you owe.
That also means a direct 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 part of your stimulus check if you qualify for a lower amount in 2021. If you didn’t receive everything you were owed this year, you can claim your fullby filing in 2021 (more on that below).
You’re not required to file taxes to get a stimulus check
Though, you don’t need to have filed a tax return to qualify for a check. If you’re , for example, and receive , you could still qualify for a stimulus check under the CARES Act as well as with the second check. You just might need to and get your check, however.
Landlords and nursing homes can’t intercept your stimulus check money
Theprevented landlords from demanding you give them your stimulus check to make a rent payment. Nursing homes and care facilities also cannot ask you to hand over your stimulus check money to meet a payment, according to the IRS.
Thefollows the same rules. If someone pressures you or threatens you with eviction in exchange for your payment, make sure you know your rights in regards to stimulus checks and to the that lasts through Jan. 31. The includes rental assistance for states and cities.
If you’re late on 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 stimulus money, unless it falls into an exception below. Here’s what we know about.
If you’re behind on child support, your check can’t be garnished
Under the CARES Act, stimulus money could be seized by state and federal agencies to cover past-due child support. However, your second stimulus check can’t be taken if you owe money on child support. Here’s everything to know about.
If you haven’t received all or part of your first check, you can claim a rebate to get that money later
If you were eligible for a first check but 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 .
If you don’t receive your second check by the middle of January, you can also claim on your taxes in 2021.
To get your money this way — which the IRS calls a— you have to wait until you file your 2020 federal income tax return (the deadline for which is ). When you file a 2020 Form 1040 or 1040SR, you’ll get a rebate for the amount of money you missed out on in the first round. This credit would either increase the amount of your tax refund or lower the amount of the tax you need to pay by the amount of stimulus money you’re still owed.
Incarcerated people may still be able to claim their stimulus check
Though there was a lot of confusion at first,of up to $1,200 per adult.
A ruling this fall from a federal judge in California required the IRS to contact those incarcerated who can file a claim for a stimulus check. The deadline to file a claim this year — either through the mail or online — has passed. As with others who are missing a payment, the IRS said if you do not receive a payment by Dec. 31 you may be able to claim it as aby filing a 2020 Form 1040 or 1040-SR.
Right now, incarcerated people are entitled to a second stimulus check.
Banks and creditors are not able to take your second stimulus check
Private banks and creditors were able to seize a payment to cover an outstanding debt with the first check. However, some states, such as California, have issued orders forbidding banks and creditors from garnishing your stimulus check. With the second stimulus check, your payment is protected from bank garnishment and from private creditors and debt collectors.
Can the IRS make you send back 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’s how .)
However, if the IRS thinks it mistakenly sent you, or if you receive money in your check for someone who’s died, the agency expects you to return the payment.