What are the rights you have when you receive the second stimulus check? | The State
Since the delivery of the first stimulus check some rules have changed so it’s a good idea for you to know what are your rights when receiving a new payment.
Now that the second stimulus check is being issued according to the pay groups, tens of millions of Americans will receive $ 600 dollars per person. However, you need to be aware of changes in qualifications and the new income limit that could prevent many people from receiving another payment.
Although anyone has the right to spend their money however they want, there are still some doubts so we will help you resolve them while the IRS continues to send the new payments until January 15 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 child support, your stimulus check cannot be confiscated
Under the CARES Act, stimulus money could be confiscated by state and federal agencies to cover back child support. Yet 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 that prohibited banks and creditors garnish your stimulus check. With the second stimulus check, your payment is protected from bank garnishment, creditors and private debt collectors, according to the text of the law.
However, there is an important caveat: Individual banks they can decide if they want to use your stimulus direct deposit to cover overdraft expenses, according to a report in the newspaper 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 such as Citigroup, Bank of America, JPMorgan Chase and Wells Fargo said that temporarily would put negative balances to zero from their clients to access stimulus money, some regional and community banks are garnishing that money to pay overdraft fees, or are considering client 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 won’t 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 stimulus money and the IRS will not garnish you to pay back tax debt.
A direct payment you receive will not reduce your tax refund in 2021 or increase the amount you owe when you file your 2020 tax return.
You also won’t have to return part of that stimulus check if you are entitled to a lesser amount in 2021.
In case you do not receive all the money that you were owed this year you can claim the full amount of your stimulus check as a Recovery Refund Credit on your 2020 federal income tax return when filing in 2021.
You don’t have to file taxes to get a stimulus check
Although taxes play an important role in determining stimulus check eligibility, You do not need to have filed a tax return to qualify for a check. If you are over 65, for example, and 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 one step further to request your payment and receive your check.
Homeowners and nursing home owners can’t take your stimulus money
The CARES Act prevented landlords from requiring you to give them your stimulus check to pay rent. Nursing homes and nursing homes they also can’t ask you to hand over your stimulus check money to make a payment, according to the IRS.
He second stimulus check follow 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 moratorium on eviction that lasts until January 31. The stimulus legislation of $ 900 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 like 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 $ 600 stimulus check first?
If you still have not received the first check, you can claim a refund
If you were eligible for a first check, but have not yet received a direct deposit, check, or EIP prepaid debit card from the IRS, you may have been mistakenly overlooked or have a problem that needs to be resolved. Certain groups who are entitled to that first payment, such as some seniors, retirees, SSDI recipients, non-citizens, and those who are incarcerated, can submit a payment request in 2021.
If you did not receive your second check in mid-January, you can claim your taxes in 2021
To get your money you must present a Recovery Refund Credit when you file your federal tax return for 2020 whose deadline is April 15.
When you file a 2020 1040 or 1040SR, 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 tax you owe on the stimulus money you still owe.
Related: What do you need to do to receive the second $ 600 stimulus check from the IRS?
Incarcerated people will be able to claim their stimulus check
Although there was a lot of confusion at first, people in prison are eligible for the first stimulus check of up to $ 1,200 per adult.
As reported by Washington Post, a A California judge’s ruling in the fall required the IRS to contact incarcerated people 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 December 31, you can claim it as a Recovery Refund Credit in 2021 by filing a 2020 Form 1040 or 1040-SR.
Cases where you must return the check
If the IRS mistakenly sent you more money than you qualify, or if you receive money from a person who has passed away, the agency has mentioned that you will need to return that money.
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