Friday’s $2.2 trillion coronavirus relief bill will send $1,200 to millions of Americans to support them through the pandemic, but those who are overdue on child support payments may be ineligible for the benefit.
NBC reported Sen. Chuck Grassley, R-Iowa, the chairman of the Finance Committee and a key author of the Coronavirus Aid, Relief and Economic Security Act, made the clarification in an FAQ published Thursday.
“All U.S. residents or citizens with adjusted gross income under $75,000 ($112,500 for head of household and $150,000 married), who are not the dependent of another taxpayer and have a work-eligible Social Security Number, are eligible for the full $1,200 ($2,400 married) rebate,” he said. “They are also eligible for an additional $500 per child. A typical family of four is eligible for a $3,400 recovery rebate.”
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Even those who owe back taxes or have past due debt to a federal agency will receive the rebate. This includes student loan payments.
“The bill turns off nearly all administrative offsets that ordinarily may reduce tax refunds for individuals who have past tax debts, or who are behind on other payments to federal or state governments, including student loan payments.
“The only administrative offset that will be enforced applies to those who have past due child support payments that the states have reported to the Treasury Department.”
The Debt Collection Improvement Act of 1996 gives the Secretary of the Treasury authority to collect past-due child support.
Treasury Secretary Steven Mnuchin has said the checks and direct deposits should start going out within three weeks.
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