Maybe you’ve received your stimulus “check” by direct deposit, or maybe you are among the millions still waiting to get their $1200 or more from Uncle Sam. If you have certain debts outstanding, you may have a reason to be nervous.
With most adult citizens due to get payments of $1200 or more over the coming days, weeks or (hopefully not) months, there are certain creditors that are licking their chops to get their cut. But who really can get their hands on your COVID-19 stimulus payment? I had a friend ask me this very question, so I did a little research and I thought many of you might find the answers interesting.
If you owe the feds money (for example, the IRS), you will be pleased to learn that they won’t be confiscating your stimulus payment. The government will keep sharpening their knives for another day, but they’re going to let things slide for now. The section of the law titled “EXCEPTION FROM REDUCTION OR OFFSET” spares you from them taking your coronavirus stimulus check to go towards past tax debts and other debts to federal agencies. It does the same for the state governments too, with one big exception, which the Treasury Department has said they will help collect…
What is the exception? They will help your state intercept the money to fulfill your child support obligations. So if you have a baby-momma or baby-daddy out there that hasn’t been taken care of properly, they will take your stimulus money to meet your obligations.
Do you jointly file tax returns with someone who has that baby-momma/baby-daddy problem? If so, you can still (probably) get your share of the refund. There is a form for that on the IRS web site, Form 8379, Injured Spouse Allocation. The injured spouse on a jointly filed tax return files Form 8379 to get back their share of the joint refund when the joint overpayment is applied to a past-due obligation of the other spouse.
Want to know if they’re coming after any refunds you have due? You can contact the Treasury Offset Program at 1-800-304-3107.
There’s one more creditor that has a really good chance to snatch your stimulus refund before you can get it withdrawn from your account: your bank. If you’ve overdrafted your account or stiffed a credit card, car loan or other debt instrument from the same bank where your direct deposit is headed, you may have a problem. The CARES Act (that’s the name of the coronavirus law that has the stimulus money in it), DOES NOT protect you from them snatching it if you have a debt with them.
If you’re in that position, there are a few things you can try to do that might save you. First, if you haven’t filed your 2019 return yet and you’re due a refund, file immediately and use a bank account that is not with a bank where you have overdue debts to receive your refund. That will change your banking info on file and may get your refund routed to the “better” bank account. The other thing that MIGHT work is to go to the Internal Revenue Service’s Get My Payment page and attempt to update your info.
Good luck! Hopefully everything goes smoothly and you get your payment as expected.
And while we’re on the topic of free money…have you taken advantage of these free class action lawsuit settlement checks that you can score?
–FREE MONEY! NO RECEIPTS NEEDED! Chipotle Class Action Lawsuit Settlement!
–***NO RECEIPTS NEEDED*** The Children’s Place Class Action Lawsuit Settlement
–Up to $100 FREE MONEY ***NO RECEIPTS REQ’D*** Atkins Class Action Lawsuit Settlement!
–$20 FREE! ***NO RECEIPTS REQ’D*** Ocean Spray Class Action Lawsuit Settlement!
–Checkers/Rally’s Class Action Lawsuit Settlement = $10 of FREE Food for YOU (if you qualify!)
–Up to $30 FREE ***NO RECEIPTS REQ’D*** Bell + Howell Class Action Settlement!
–Yahoo! Data Breach Class Action Lawsuit Settlement
–Charmin Class Action Lawsuit Settlement ***NO RECEIPTS REQUIRED***
–McCormick/Private Label Black Pepper Class Action Lawsuit Settlement!
IRS, Bank or Ex?/Who will snatch/your stimulus $$$?