Economic Impact Payment Offsets
Information about Advance Child Tax Credit Payments >
General Information on Federal Economic Impact Payments >
Information for Parents Who Are Owed Support >
Information for Parents Who Owe Support >
Information for Joint Filers Spouses of Parents Who Owe Support >
Information about Advance Child Tax Credit Payments
The American Rescue Plan Act of 2021 signed March 11, 2021, expands the amount of the Child Tax Credit families can claim for dependent children under the age of 17 for the 2021 tax year and requires the U.S. Department of the Treasury to send up to 50 percent of the estimated credit amount to families in advance of filing a 2021 tax return. The Internal Revenue Service has stated that the payments will be issued monthly starting in July 2021. These payments are exempt from federal offset for people who owe past-due child support. This means that the U.S. Department of the Treasury will not take the amount of past-due child support owed and send that amount to the Child Support Program.
For more information about Child Tax Credit Payments, please visit:
General Information on Federal Economic Impact Payments
The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed March 27, 2020, provides for cash payments in the amount of $1200 per eligible adult and $500 for each eligible child. Under federal law, these payments, referred to by the U.S. Department of the Treasury as Economic Impact Payments, are subject to federal offset for persons who owe past-due support. This means the U.S. Department of the Treasury will take the amount of past-due support owed from the Economic Impact Payment and send that amount to the Child Support Program.
The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 signed December 27, 2020, provides a second round of economic impact payments in the amount of $600. Under federal law, these payments are not subject to offset for past-due child support if they are issued as a direct payment; however, if the $600 economic impact payment is claimed on a 2020 tax return as a recovery rebate credit, the IRS has stated the amount is eligible for offset. This means that if the $600 is issued as part of a federal income tax refund, the U.S. Department of the Treasury will take the amount of past-due support owed and send it to the Child Support Program.
The American Rescue Plan Act of 2021 signed March 11, 2021, provides a third round of economic impact payments in the amount of $1400. Under federal law, these payments are not subject to offset for past-due support. This means the U.S. Department of the Treasury will not take the amount of past-due support owed and send it to the Child Support Program.
For details about Economic Impact Payments, please visit:
How much past-due support must be owed for the U.S. Department of the Treasury to offset the $1200 Economic Impact Payment or $600 Recovery Rebate Credit?
Parents who owe support must have a combined past-due balance on all their cases of at least $150 in public assistance cases and $500 in cases with no public assistance to be eligible for offset.
Where can I find more information about Economic Impact Payments and federal offsets?
For information about Economic Impact Payments, visit the IRS website.
For answers to frequently asked questions about Economic Impact Payments and Treasury Offsets, visit the U.S. Department of the Treasury website.
Information for Parents Who Are Owed Support
Can I see the status of the payment in my Child Support Program eServices account?
Yes. Offset payments received by the Child Support Program and applied to a support balance are recorded on eServices.
I am owed past-due support. Why didn't I receive a payment from the $1200 Economic Impact Payment or $600 Recovery Rebate Credit of the parent who owes support?
The Child Support Program reports all eligible cases with past-due support to the U.S. Department of the Treasury. We will not receive an offset payment unless the parent who owes support is eligible for the $1200 Economic Impact Payment.
The $600 Economic Impact Payment is only eligible for offset of past-due child support if it is claimed as a Recovery Rebate Credit on a 2020 tax return. We will not receive an offset payment unless the parent who owes support claims the $600 Economic Impact Payment as part of a tax return for filing year 2020. The $600 amount will not be a separate payment but will be issued as part of a regular tax refund offset.
I see a payment on eServices that has not been sent to me. When will I receive the payment?
Update: Due to the U.S. Department of the Treasury's delay in processing adjustments to the $1200 Economic Impact Payments, the federal government extended authorization to Child Support Programs to hold payments until June 30, 2021. The Child Support Program is now releasing these payments in advance of June 30. We expect all Economic Impact Payments received more than 180 days ago and held under the extended authorization to be disbursed to parents by June 4, 2021.
Information for Parents Who Owe Support
What if the amount of past-due support I owe is less than the amount of the Economic Impact Payment?
The U.S. Department of the Treasury will only offset and send the amount of past-due support you owe. Any remaining amount of payment will be sent to you by the U.S. Department of the Treasury.
How will I know if my Economic Impact Payment has been offset?
The U.S. Department of the Treasury will send you a written offset notice by U.S. Mail. View a sample of this notice.
What if my Economic Impact Payment is offset in error?
If you believe your Economic Impact Payment has been offset in error, contact us within 20 days after the date of the offset notice from the U.S Department of the Treasury. The Child Support Program will review its records and any records you provide and attempt to resolve your concerns informally. If we cannot resolve your concerns during the informal review, the Program will send you a Notice of Decision by regular mail (or by email if provided). You will have 30 days after the date of the Notice of Decision to file a written request for an administrative hearing to contest the offset.
How do I contest federal offset?
Contact us within 20 days after the date of the offset notice from the U.S Department of the Treasury. The Child Support Program will review its records and any records you provide and attempt to resolve your concerns informally. If we cannot resolve your concerns during the informal review, the Program will send you a Notice of Decision by regular mail (or by email if provided). You will have 30 days after the date of the Notice of Decision to file a written request for an administrative hearing to contest the offset.
Information for Joint Filers Spouses of Parents Who Owe Support
What if I am married to a parent who owes past-due support and filed a joint tax return with the IRS?
The best resource for how the U.S. Department of the Treasury will handle your Economic Impact Payment is a written notice from them telling you if your share of the payment was offset.
The Child Support Program does not receive information from the U.S. Department of the Treasury on how they offset Economic Impact Payments on joint filed tax returns. The Child Support Program is only notified when the payment is received from the U.S. Department of the Treasury. This occurs after you receive a written notice from them. View a sample of this notice.
The U.S. Department of the Treasury published information on how they will process the $1200 Economic Impact Payment on a joint filed return. For more information, visit the IRS Economic Impact Payment Information Center and the U.S. Department of the Treasury FAQs on Economic Impact Payments webpage.
Are Economic Impact Payment offsets involving joint returns held to allow time for the spouse of the parent who owes support to file a claim?
The U.S. Department of the Treasury authorizes state Child Support Programs to hold federal offset payments received from parents who file joint returns with their spouse. For more information, visit the IRS Economic Impact Payment Information Center.
