Since the delivery of the first stimulus check some rules have changed so it is a good idea for you to know what your rights are when receiving a new payment .
Now that the second stimulus check is being delivered according to the groups pay, tens of millions of Americans will receive $ 600 dollars per person . However, you need to be aware of the changes in qualifications and the new income limit that could prevent many people from receiving another payment.
Although anyone You have the right to spend your money however you want , there are still some doubts so we will help you resolve them while the IRS continues to send the new payments until 15 January through direct deposit , physical checks and EIP cards . After that date, those who have not received their check will have to claim it on their tax return.
If you owe money for the support of Minors your stimulus check cannot be confiscated
Under the CARES Act, stimulus money could be confiscated by state and federal agencies for cover back child support. However, your second stimulus check cannot be taken if you owe money for child support . This change with the new payment is widely understood by federal and state agencies. However, there may be exceptions.
Banks and creditors will not be able to garnish your deposit, with only one exception
With the first stimulus check, banks and private creditors were able to garnish a payment to cover an outstanding debt. However, some states, such as California , issued orders prohibiting banks and creditors from garnishing your stimulus check . With the second stimulus check, your payment is protected from bank seizure, creditors and private debt collectors , according to text of the law.
However, there is an important caveat: Individual banks can decide if they want to use your deposit direct stimulus to cover overdraft expenses , according to a newspaper report The New York Times . This is because for most people, the stimulus check is deposited into the same bank account where they also receive tax refunds.
Banks like Citigroup, Bank of America, JPMorgan Chase and Wells Fargo said that they would temporarily put their clients’ negative balances to zero so they can access the stimulus money, some regional and community banks are garnishing that money to pay the overdraft fees, or are considering customer requests on a case-by-case basis, according to the Times. If this happened to you, you should contact your bank to request a temporary overdraft exception, although this may not happen.
The government will not record your first or second stimulus check
Because the IRS does not consider stimulus payments as income, this means that you will not be taxed on the money stimulus and the IRS will not garnish you to pay back tax debt.
A direct payment you receive will not reduce your tax refund by 2021 or increase the amount you owe when you file your 2020.
You also won’t have to return part of that stimulus check if you have right to a lower amount in 2021.
In case of not receiving all the money owed to you this year you can claim the mon your total stimulus check as a Recovery Refund Credit on your federal income tax return of 2020 when filing at 2021.
You don’t have to file taxes to get a stimulus check
Although taxes play an important role in determining stimulus check eligibility, it is not necessary to have filed a tax return taxes to qualify for a check . If you are more than 65 years, please For example, and you receive Supplemental Security Income or Social Security Disability Insurance, you may still qualify for a stimulus check under the CARES Act as well as the second check. However, you may have to go a step further to request your payment and receive your check.
Homeowners and Nursing homes can’t take your stimulus money away
The CARES Act prevented landlords from requiring you to give them your stimulus check to pay rent. Nursing homes and care centers also cannot ask you to hand over the money from your stimulus check to make a payment , according to IRS .
The second stimulus check follows the same rules. If someone is pressuring you or threatening to evict you in exchange for your payment, make sure you know your rights regarding stimulus checks and the eviction moratorium that lasts until 31 from January. Stimulus legislation of $ 1040 billion dollars includes rental assistance for states and cities.
If your check payment is late, the stimulus money will not be confiscated
If you have to make a deposit or a monthly payment such as a car, you are not obliged , in most cases , to deliver the stimulus money unless there are some exceptions.
Related: Which group of people will receive the second stimulus check of $ 600 Dollars?
If you still have not received the first check you can claim a refund
If you were entitled to a first check but have not yet received a direct deposit, check or prepaid debit card from EIP from the IRS, you may have been mistakenly overlooked or have a problem that needs to be resolved. Certain groups that are entitled to that first payment, such as some seniors, retirees, SSDI beneficiaries, non-citizens and those who are incarcerated, can submit a request for payment at 2021 .
If you did not receive your second check in mid-January you can claim your taxes at 2021
To get your money you must present a Recovery Refund Credit when submit your federal tax return for the year 2020 whose due date is 15 of April.
When you submit a form 1040 or 1040 SR del 2020, you will get a refund for the amount of money you lost in the first round. This credit would increase the amount of your tax refund or decrease the amount of taxes you must pay on the stimulus money you still owe.
Related: What do you need to do to receive the second stimulus check from the IRS for $ 600 Dollars?
Incarcerated persons will be able to claim their stimulus check
Although at first there was a lot of confusion, people who are in prison are eligible for the first stimulus check up to $ 1, 200 dollars per adult.
As reported by the Washington Post, a ruling by a judge in California during the fall required that the IRS contact incarcerated individuals who can file a claim for a stimulus check. The deadline to file a claim in 2020 has passed. As with other people who haven’t received a payment, the IRS said that if you don’t receive a payment by 31 December, you can claim it as a Recovery Refund Credit at 2021 submitting a Form 900 or 1040 – SR of 2020.
Cases where you must return the check
If the IRS sent you by mistake more money than you qualify or if you receive money from a person who passed away, the agency has mentioned that you will need to return that money .
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