Question

Ok so, my SECOND Stimulus was sent to a closed bank account. I didn't receive a first stimulus because I owe some child support. That being said, it is my understanding that

Forum|Forum|5 years ago
January 13, 2021
1 reply
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1.) Child Support will not be withheld from 2nd Stimulus and 2.) Since it was sent to a closed account, that bank will reject it and send it back to the IRS who in turn will then mail a paper check.

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Opus 17

Employee

Generally yes. However, the IRS has indicated that due to tight deadlines, they can't actually mail the checks and taxpayers will have to claim the rebate on their tax returns. The IRS has changed their guidance several times, so you really need to check their web site and their FAQs to see what their current statement is.

https://www.irs.gov/coronavirus/get-my-payment

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tooljunkie06Author

Hey Opus,

Yes I understand that...not sure what happened to the second part of my question. What I need to know is if my second stimulus payment (now assumed attached with 2020 Federal Return - which IS I am assuming subject to TOP - will be affected? Is there functionality to distinguish between the two? Will they offset my federal tax refund and be able to deposit my owed stimulus?

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Opus 17

Employee

@tooljunkie06 wrote:

Hey Opus,

Yes I understand that...not sure what happened to the second part of my question. What I need to know is if my second stimulus payment (now assumed attached with 2020 Federal Return - which IS I am assuming subject to TOP - will be affected? Is there functionality to distinguish between the two? Will they offset my federal tax refund and be able to deposit my owed stimulus?

It appears from the text of the actual law, that the second round payment is exempt from offset, whether paid in advance or claimed on your tax return. However, I am not a lawyer and I might have misunderstood the language. (section (d)(1) on page 791 here https://www.congress.gov/116/bills/hr133/BILLS-116hr133enr.pdf)

The IRS certainly knows which part of your refund is due to the stimulus payment since it is on line 30 of the tax return. Presumably they will have to forward this information to the BFS who actually handle the offsets.