Under the Economic Stimulus Act of 2008 are agencies like Child Support able to take all/part of the rebate?
My boyfriend has a small amount in child support arrears. Last year his rebate when to his arrears which is good. I was just curious if this applies to the Economic Stimulus Act of 2008 Rebate? Usually we get letters in the mail saying such and such agency is applying said rebate to past due amounts. Should we expect a similar letter or are these rebates not able to be taken by said or any government affiliated agency?
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May 25th, 2009 at 7:47 am
The rebate will go to pay any past due debts that the IRS collects first.
According to the IRS:
Q. I'm eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?
A. Yes. For this purpose, the stimulus payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support. If this occurs, you will receive a letter explaining how the stimulus payment was applied.
May 25th, 2009 at 7:47 am
The rebate is issued by the IRS. Absolutely they can and will take the rebate amount. But, at least it will help him pay down the debt.
May 25th, 2009 at 7:47 am
Last year his tax refund went towards support of his child. As long as he owes an arrearage, the IRS can direct his refund and or rebate towards his obligations. There was no rebate last year, just his refund. Once his arrearage is cleared, and if he makes his current child support payments, he should receive his refunds and any future rebates.
May 25th, 2009 at 7:47 am
The stimulus rebate will be taken if he still owes.