As the novel coronavirus (COVID-19) pandemic continues, many individuals and businesses in America are still facing financial hardship. In response, Congress passed a second relief bill, the Consolidated Appropriations Act, 2021 (CAA), to jumpstart the economy.
Recovery Rebate Amounts
The new legislation, which President Donald Trump signed into law on December 27, 2020, expands on many of the provisions enumerated in the CARES Act that was passed earlier in 2020. One program that has been expanded on is the distribution of Economic Impact Payments (stimulus checks) to individuals and families.
The second round of stimulus checks provides $600 for single taxpayers, $1,200 for joint taxpayers, and $600 for each dependent child. The amount begins to phase out based on the filer's adjusted gross income. The IRS will automatically deliver Economic Impact Payments to eligible individuals. For more information about the stimulus checks, please visit the IRS's website.
Child Support Arrears and Stimulus Checks
In April of 2020, we posted a blog discussing how, under the CARES Act, anyone who owed back child support would receive a reduced stimulus check or no check at all. The CAA differs from the previous piece of legislation in that child support arrearages will not be taken from the second round of stimulus checks. Provisions in the CAA prohibit levies and garnishments for past due debts. Thus, if you owe back child support, you will receive a stimulus check as part of the second disbursement without arrears being factored into your recovery amount.