CAN TEXAS KEEP YOUR STIMULUS CHECKS FOR UNPAID CHILD SUPPORT?
When you don’t have a lot of savings, finding out you’re going to get a stimulus check can do great things for your budget. You might be able to pay off a credit card balance or finally make the repairs that you need on your car.
However, you are a parent subject to a child support order in Texas, the state does have the authority to seize assets if you are behind on child support. If you owe past-due child support, will your second and third stimulus checks be at risk?
When the first stimulus package went through and people began receiving the first round of checks in 2020, some people who owed past-due child support found their checks seized for the payment.
State governments or the IRS intercepted funds intended to help people struggling financially and used them to pay off debts, instead. Lawmakers quickly figured out what an issue this was and addressed it in the second stimulus bill. Checks and direct deposits issued as part of that payment and the most recent stimulus package are not eligible for interception for government or private debts.
Just to keep things as interesting as possible, the rules are slightly different for the third stimulus check. While not subject to any kind of collection for government debt, like taxes or child support arrears, they can be vulnerable to claims related to private debts, such as judgments held by businesses.