COVID-19 FAMILY LAW UPDATE NO. 5

Stimulus checks for all—or almost all

On March 27, 2020, President Trump signed the $2 trillion emergency economic stimulus package passed by Congress. One of the most discussed portions has been the stimulus checks that will be issued to Americans meeting certain income thresholds.

The stimulus payments issued will not be taxable, and will not be subject to administrative holds for past due taxes or student loan payments but will be for past due child support payments.

State child support collection agencies such as the Texas Office of Attorney General Child Support Division report court determined child support arrearages to the United States Treasury. The Treasury Department can then intercept income tax refunds of someone who is in arrears and remit the refund to the state agency for ultimate distribution to the parent owed child support.

The latest available figures estimate that 3.3 million Americans are delinquent in their court ordered child support payments.