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Garnishing the stimulus?


HV Ken

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Clients have their refund garnished every year to meet past obligations (e.g. past child support). Does anyone know if their stimulus payment will also be garnished?

I found this at http://www.irs.gov/newsroom/article/0,,id=179181,00.html

Q. I'm eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?

A. Yes. For this purpose, the Stimulus Payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support.

Q. How will I be notified if my stimulus payment was used to offset an outstanding debt?

A. If this occurs, you will receive a letter explaining how the Stimulus Payment was applied. [Added 4/11/08]

Q. I am filing a joint tax return with my spouse who has a past-due obligation. How can I ensure that I still get my share of our joint Stimulus Payment?

A. In this situation, you are considered an injured spouse. To get your share of a joint income-tax refund, as well as your share of the Stimulus Payment, you can file Form 8379, Injured Spouse Allocation. You will get your share of these payments, and your spouse’s share will be applied to his or her past-due federal or state income taxes or non-tax federal debt such as student loans and child support. Your allocation request will be processed more quickly if you attach Form 8379 to your regular 2007 federal income tax return. [New 3/25/08]

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