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The yeses and noes of the third stimulus payment

Is the money taxable? Can I reject the money? Will I get a check for my college-age dependent? A CPA answers these burning questions.

ATLANTA — Some people are starting to see their third stimulus payment deposited into their accounts, while millions more wait and others wonder.

11Alive took some of your questions to Certified Public Accountant Wendy Barlin to help understand more about this third round of checks. 

Here are the yeses and noes of the stimulus payments.

YES, you can use your money towards taxes. 

Barlin: In prior stimulus packages, the government would actually hold the money if you owed them taxes. This third round is different. You’ll get the money, then you’ll need to turn around and pay taxes if you owe unemployment or back taxes.

No, this isn’t taxable income. 

Stimulus checks will not be garnished for government debts, including child support.

Barlin: You’re absolutely not gong to get taxed on this money. This is your money to keep. 

There’s a lot of grassroots discussion like, ‘oh, don’t take it because you will have to pay tax, it’s going to come back to bite you.’ There’s nothing about taking this stimulus money that is going to come back to bite you.”

No, you can’t reject the money (but you can donate it.)

Barlin: You can’t reject the money, but if you don’t want or need it, I highly recommend that you donate it. You’ll get a tax deduction for donating that money to an organization in need.

Barlin added that in order to receive the paperwork you’ll need to get the tax break, make sure you donate to a 501(c)(3) organization. The IRS has a list on their website of pre-approved organizations.

Yes, you’ll get a check for your college-age dependent. 

Barlin: This one was just crazy because it kept changing, but as the very last minute, it was decided that if a person is on your tax return as a dependent, you will in fact get money for them.

But, no, they won’t get their own check. 

Barlin added that you can’t “double dip," or get a check for them as a dependent and them also try to file a tax return to receive money. 

Barlin: It’s an either/or. If they’re not a dependent, they can file taxes on their own and they will get their own stimulus check.

Yes, if you didn’t get the first or second stimulus check (and you qualified to get one) you can STILL get those payments. 

Barlin: If you didn’t receive your first or second stimulus, and you’ve done nothing to change the situation, you likely won’t receive the third. We recommend you file your 2020 tax return right away with a current address and banking information so that the government can find you to give you your money. I’m filing returns for people right now, where they are getting all three stimulus packages at one time, which is a nice big chunk of cash.

Yes, you can call the IRS to help you (but it may take a while).

Barlin: I had a client actually call the IRS and he got through, and they were able to check a few boxes and get him the stimulus money the same day. It takes patience and some courage, but you can get your money by calling the IRS.” (Although Barlin did recommend trying the IRS Stimulus Money tool first.)

Yes, if you didn’t file 2019 taxes, you’ll get a check (if you file your 2020 taxes).

Barlin: If you file for 2020, you will get your stimulus check, no matter whether you filed for 2019.

Yes, you’ll get a check if you’re not currently working. 

Barlin: There’s nothing about the stimulus money that is linked to unemployment. In fact, you need it more right now if you’re not working. And, filing a 2020 tax return is not only for people who have taxable income. At this point, it’s really to get your information into the system so that you can get the benefits to which you’re entitled.

BONUS: Money disappearing? Notified of garnishments?

An 11Alive viewer said her payment was deposited, but removed the following morning. Although Barlin hasn’t heard of many of these instances, she recommended calling the IRS and/or the bank immediately.

“Call the IRS, give them your social security number and the bank account to which it came, and they can see exactly what happened," she recommended. "Maybe it was a glitch on the banking system that they can resolve right away, but I would highly recommend calling, even if you’re on hold for three hours. Wait, because they will be able to resolve it for you.”

Another viewer asked if they would be notified if a private debt collector garnished the stimulus.

A stimulus check “can be garnished by any private debt collector.” IF creditors already have a court order placing a claim or freeze on your bank account.

“We haven’t seen much paperwork or a lot of notifications, but there should be some level of paperwork to accompany anyone trying to garnish money (by private debt collectors).

We have more stories on how to track your payment, what creditors can or can’t do with your stimulus money, and what happens if you receive a "payment status not available" message from the stimulus tracker.

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