Will I Get a Stimulus Check If I Owe Taxes?

Concerns about owing taxes and how that might affect eligibility for federal stimulus payments, officially called Economic Impact Payments, were common during the pandemic. The federal government issued three separate payments, and the rules for each were distinct. The specific legislation authorizing each payment determined how an outstanding tax liability could impact your ability to receive these funds.

Stimulus Checks and Federal Tax Debt

The rules for offsetting stimulus payments for outstanding federal tax debts were not consistent across the three rounds of aid. For the first payment, authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the law protected the payment from being used to cover federal tax debts. Even if you owed the IRS, your first stimulus payment of up to $1,200 per adult and $500 per child could not be reduced to pay that debt.

The second and third stimulus payments received even broader protections. The COVID-related Tax Relief Act of 2020 (second payment, up to $600 per person) and the American Rescue Plan Act of 2021 (third payment, up to $1,400 per person) both prevented the funds from being taken to pay federal or state tax debts.

Offsets for Other Types of Debt

While federal tax debts were not an issue for receiving payments, other obligations had different rules. The primary exception involved past-due child support, which was handled differently for the first payment compared to the second and third.

Past-Due Child Support

For the first stimulus payment under the CARES Act, individuals who owed past-due child support could have their payment intercepted through the Treasury Offset Program. This applied if the debt exceeded $150 in a public assistance case or $500 in a non-public assistance case. The second and third stimulus payments were protected from being offset for past-due child support.

Private Creditors and Bank Garnishments

The federal government did not use stimulus payments to satisfy debts owed to private creditors like credit card companies. However, for the first and third payments, once the money was in a bank account, it was vulnerable to garnishment by private collectors with a court order. The second payment included protections that shielded the funds from such garnishments.

Tax Filing Status and Stimulus Eligibility

The IRS used the tax system to distribute the Economic Impact Payments. Information from recent tax returns was the primary tool for determining eligibility, calculating payment amounts, and issuing funds via direct deposit or mail. Filing a tax return was the most direct way to receive a payment automatically.

For the first two payments, the IRS primarily used information from 2019 or 2018 tax returns to issue the funds. For the third payment, the agency based eligibility on 2020 or 2019 returns.

Individuals not required to file a tax return due to low income, such as some Social Security beneficiaries, were still eligible. The IRS used information from agencies like the Social Security Administration to issue automatic payments to these non-filers. For others outside these systems, the IRS provided an online non-filer portal to register.

Claiming a Missing Stimulus Payment

If you did not automatically receive the full amount you were entitled to, the method to claim the missing funds is the Recovery Rebate Credit. This credit is claimed on a federal income tax return for the corresponding year. The first two payments were reconciled on the 2020 tax return, while the third was reconciled on the 2021 tax return.

Unlike the direct payments, the Recovery Rebate Credit first applies to any tax liability for that year. For example, if you owed $500 in taxes on your 2021 return and were eligible for a $1,400 credit, it would first cover your tax bill. You would then receive the remaining $900 as a refund.

The deadline for filing a 2020 tax return to claim the first two payments has passed. The deadline to file a 2021 tax return to claim the third payment is April 15, 2025. If you believe a payment was issued but never received, you can request a payment trace from the IRS by submitting Form 3911, Taxpayer Statement Regarding Refund.