The IRS has until Friday to send out yourof . While that money is yours to keep in most cases, there are a few rule changes in the — including and new income limits that may — that could also allow certain people or organizations to take your money in this round.
This may leave you wondering: Will I get taxed on my first orthis year? Can states, banks or my landlord garnish my money? Could my second check be garnished to pay ? What if the IRS sent me too much money by accident?
We’ve got all of the information you’ll need as the IRS continues tothis week via , and . (Here’s how to and , and what we know so far about a potential for .) After the Friday deadline, those who haven’t received their checks will need to , or, in some cases, . This story has been updated recently.
Your second check can’t be garnished for overdue child support
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 for child support. This change with the new payment is widely understood across federal and state agencies. However, there could potentially be errors since the rollout is happening so swiftly. Here’s everything to know about. It isn’t clear if garnishment rules would further change in a .
Banks and creditors won’t be able to take your second stimulus check, but there is one exception
With the first stimulus check, private banks and creditors were able to seize a payment to cover an outstanding debt. However, some states, such as California, 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, according to the text of the law.
However, there’s one major caveat here: Individual banks can decide whether they want to use your stimulusto cover overdraft fees, according to a New York Times report. This is because for most people, their stimulus check is deposited into the same bank account where they also .
Though large US banks including Bank of America, Citigroup, JPMorgan Chase and Wells Fargo said they would temporarily zero out their customers’ negative balances so that they can access their stimulus money, some regional and community banks are garnishing that money to pay overdraft fees, or are considering customer requests on a case-by-case basis, according to the Times. If this has happened to you, you can try contacting your bank to ask for a temporary overdraft waiver, but it may not be granted.
No, the government will not tax your stimulus checks
The IRS doesn’t consider stimulus payments to be, 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 don’t have to file taxes to get a stimulus check, however…
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 under the CARES Act as well as with the second check. You just might need to and get your check, however. CNET is in the process of clarifying if nonfilers will have to file a tax return in order to receive any stimulus money that doesn’t come .
Landlords and nursing homes can’t force you to use your stimulus money as payment
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.
The second stimulus check follows 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 thethat lasts through Jan. 31. The includes rental assistance for states and cities.
Your stimulus check won’t be taken to cover a late car payment
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 your first check is still missing, 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.
If you got a letter from the IRS confirming either your first or second payment, but never actually got the money, you can try.
Incarcerated people can still 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 also.
Could the IRS make you return your stimulus check?
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.