OKLAHOMA CITY (KFOR) – Oklahomans who have past due child support will possibly not receive their Coronavirus Aid, Relief and Economic Securities (CARES) Act stimulus check.
Up to 130,000 Oklahomans might be prevented from receiving the relief money by a federal law called the Debt Collection Improvement Act of 1996, according to an Oklahoma Department of Human Services news release.
“The stimulus payments are not exempt under this federal law from intercept for past-due child support, and Oklahoma Human Services (OKDHS) does not have the authority under federal or state law to circumvent or redistribute intercepted monies in any way. The IRS will handle these payments the same as an intercept of a tax refund,” the news release states.
Those who have past due child support might also not receive unemployment benefits paid under the CARES Act, according to the news release.
The U.S. Department of Treasury intercepts federal payments and then issues the money to OKDHS, which will then distribute the money as past-due child support, the news release states.
Intercepted money that OKDHS receives will be held by the state for 30 days to verify balances and ensure accurate distribution.
“Federal law requires states to first withhold any debts owed for public assistance, if any. Remaining money is then applied to child support owed to the custodial parent,” the news release states.
The Treasury Department can intercept an entire stimulus payments from households with joint income tax returns but only one individual in the household owes child support. However, a spouse in such a household can file an Injured Spouse Claim and Allocation of a Joint Return (IRS Form 8379) with the IRS to claim his or her portion of the intercepted payment, according to the news release.
“OKDHS can hold Treasury Department intercepts for up to six months to see whether there is an injured spouse claim when a joint claim has been filed,” the news release states.
Click here and search key words “federal tax offset” for more information about federal intercepts.
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