Submitted By: someone
Answered: June 1, 2020 10:54 pm

Can my Economic Impact Payment be seized for any reason?

Economic Impact Payments are tax credits. As such, they cannot automatically be taken by nursing homes or assisted living facilities. The payments don’t count as “resources” for federal benefits programs, such as Medicaid. The payments belong to the elderly residents. But if someone owes back child support and the state has submitted the payer’s name to the IRS, then the Economic Impact Payment is essentially a tax refund that can be intercepted and used to pay past-due child support. And if one spouse has filed an injured spouse claim with the IRS, each spouse receives one-half of the payment; only the portion received by the payer owing back child support can be intercepted and applied toward this debt.

advertisement
Tax Glossary

Flexible spending arrangement

A salary reduction plan that allows employees to pay for enhanced medical coverage or dependent care expenses on a tax-free basis.

More terms