Congress just passed another stimulus bill, the third of its kind over the course of the COVID-19 pandemic. At this stage, you may be wondering whether your stimulus check can be seized to repay debts - today, we're here to answer that question and more.
To schedule a consultation with an experienced family lawyer for your case, contact us online or via phone at (845) 203-0997.
Can the Government Seize My Stimulus?
Fortunately, government-affiliated agencies cannot seize the third stimulus to repay outstanding tax debts or other types of government-related debt like child support. These changes mirror adjustments made to the second stimulus check, which also could not be seized to repay delinquent child support.
Unfortunately, that doesn't mean your stimulus check is completely safe. Private collectors can seize the stimulus to pay for outstanding private debts, such as damages or repayment ordered in a civil judgment.
It's important to note that for many, the third stimulus coincides with tax refunds and Recovery Rebate Credits. Both of those sources of money can still be seized to pay for overdue child support.
The third stimulus also has other unique factors. For example, there's an income limit - if your adjusted gross income as a single taxpayer is $75,000 or over, you'll either receive reduced or no stimulus payments. Additionally, for parents and guardians or conservators, adult and elderly dependents are now eligible for stimulus payments, meaning parents and guardians will receive more stimulus funds if they support an adult.
At Letterio & Haug, LLP, our attorneys help clients resolve complex family law disputes. To schedule a consultation with our team, contact us online or via phone at (845) 203-0997.