COVID-19 Economic Impact (Stimulus) Payments and Child Support

What are the Economic Impact (stimulus) Payments?

On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which, among other things, authorizes economic impact payments (also referred to as stimulus payments or recovery rebate payments) to eligible individuals. For details on these economic impact payments, please visit www.irs.gov/coronavirus.

Under the CARES Act signed on March 27, 2020, the first stimulus payment was required to be intercepted to pay child support arrears. If you pay child support through the state’s IV-D program and owe child support, the Federal Treasury Offset Program (TOP) reduced your first stimulus payment up to the amount owed. The intercepted amount was applied toward your child support arrears.

Will my first stimulus payment be intercepted to pay my child support arrears?

Yes, if you pay child support through the state’s IV-D program and owe child support, the Federal Treasury Offset Program (TOP) will reduce your stimulus payment up to the amount owed. This amount will be applied toward your child support arrears.

How does the Federal Treasury Offset Program know how much to reduce my first stimulus payment?

DCSS must, by law, certify past-due child support debts to the Federal Office of Child Support Enforcement for federal enforcement. 

• Cases with public assistance or Temporary Assistance for Needy Families (TANF) arrears are referred if the total balance of TANF arrears is $150 or more. 
• Cases without public assistance/TANF arrears are referred if the total balance $500 or more.

States are not provided the option to reduce the amount submitted for federal enforcement.

How can I check to see if I owe child support arrears?

For questions regarding the Treasury Offset Program’s (TOP) record of child support debt, please call the TOP Interactive Voice Response (IVR) system at 800-304-3107. You can also visit the DCSS website or call DCSS customer service at 1-800-882-4151 Monday - Friday, 7:00 a.m. - 5:30 p.m.

How much of my first stimulus payment can be taken to satisfy my child support arrears?

When the stimulus payment is subject to being intercepted, your stimulus payment will be reduced up to the total amount of past-due child support owed. The total stimulus payment may be intercepted when the child support amount owed is greater than the stimulus payment. The COVID-related Tax Relief Act of 2020 that was signed on December 27, 2020, that is an extension of the CARES Act, does not require the second stimulus payment to be intercepted to pay child support arrears.

I pay child support to another state where the receiving parent lives. Which state will take my first stimulus payment if I owe past-due child support?

When the stimulus payments are subject to being intercepted, the state where the past-due payments are owed will process the intercept of your stimulus payment. The COVID-related Tax Relief Act of 2020 that was signed on December 27, 2020, that is an extension of the CARES Act, does not require the stimulus payment to be intercepted to pay child support arrears.

For example: 
If you are currently paying child support through Arizona as a result of an intergovernmental case with California (i.e. another state), that other state will intercept your first stimulus payment.

What options do I have if I believe my stimulus payment should not have been intercepted?

You may dispute your stimulus payment being intercepted if you do not believe that you owe past-due child support. The paying parent may exercise his/her right to contest the intercept by submitting the completed request for an Administrative Review form to [email protected] or by mailing your form to DCSS, Attn: ARU, P.O. BOX 40458, Phoenix, AZ 85067.

I am the parent court-ordered to receive child support and currently receiving or have received public assistance or TANF.  Will I receive money from the first stimulus payment that was intercepted from the paying parent and will it be applied to my case?

When the stimulus payments are subject to being intercepted, the federal law indicates how monies received by a state child support agency under the Federal Tax Refund Offset Program are distributed. Money from federal tax offsets are first applied to past-due payments owed to the state and then to the past-due amount owed to the receiving parent. If there is money owed to the State of Arizona in your case, the stimulus payment up to the amount owed to the state will be retained by the state. The remainder will next be applied to arrears in your case. The COVID-related Tax Relief Act of 2020 that was signed on December 27, 2020, that is an extension of the CARES Act, does not require the stimulus payment to be intercepted to pay child support arrears.

What is American Rescue Plan Act of 2021?

The American Rescue Plan Act of 2021 (ARPA) is a continuation of the COVID-19 pandemic crisis corresponding plan to provide aid to many American’s across the U.S. Similar to the first and second stimulus payments, under the 2020 CARES act. The plan includes providing an extension to federal unemployment programs including PUA and PEUC, and Economic Impact Payments. For more information, please visit: https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/

Will my third stimulus payment be intercepted to pay my past-due child support?

No. The third round of stimulus payments authorized through the American Rescue Plan Act of 2021 are not subject to intercept by child support. The stimulus payment will be similar to the second round of stimulus payments as previously approved by congress under the Coronavirus Aid, Relief, and Economic Security (CARES) Act  of 2020.  For more information, please visit: https://fiscal.treasury.gov/top/faqs-for-the-public-covid-19.html