Notice Regarding Interception of Stimulus Checks
Notice Regarding Interception of Stimulus Checks by the Friend of the Court
From: Eaton County Friend of the Court, April 15, 2020
Because of the difficult economic times that the COVID-19 pandemic has created, Congress recently approved the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), a $2.2 trillion relief package.
This package includes a cash stimulus to provide Americans with up to $1,200 per adult and $500 per qualifying child in the household. The stimulus amount will be based on how much income the household earned in 2018 or 2019.
The first stimulus checks have already been deposited into bank accounts. The stimulus payments are treated as a tax refund and are subject to be intercepted for child support arrearages. Child support debts are reported to the Treasury Department every year.
Payers of child support will have their stimulus check intercepted if they owe:
• $150 or more if their child is receiving cash assistance or is in foster care, or
• $500 or more if their child is receiving Medicaid only or is receiving no state assistance.
The stimulus payments are treated the same as tax refunds in terms of fees, distribution time frames, and hold periods. Because these stimulus payments are treated as a tax refund offset, the CARES Act does not provide states the option to suspend federal tax refund offset in cases meeting criteria set forth in the Social Security Act and 45 CFR 303.72.
Payers of support can sign up on MICHILDSUPPORTto view information about their child support case at https://micase.state.mi.us/micaseapp/public/home.html. Information about the stimulus payments can be found on the IRS website at www.irs.gov/coronavirus/economic-impact-payments Further information regarding custody and parenting time issues related to the Coronavirus can be found on this Eaton County Friend of the Court website.