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Wednesday, June 11, 2008

Stimulus checks are seized for child support

All state government is seizing federal economic stimulus checks to settle debts for child support and income taxes.
The child support division had collected about $1.2 million from stimulus checks that were diverted from more than 1,800 people through May 23. "We do this every year with regular income tax refunds," said Jerry Joy, the department's assistant director for child support. He said the department has estimated it will receive $1.5 million overall.

Over $80,000 had been refunded to people who appealed the seizure of their stimulus funds. In some cases, their money had been taken from income tax refunds.
People whose stimulus checks were diverted received notices from the state.
By mid-May, the Internal Revenue Service had refunded $27 billion to about 30 million taxpayers. It expects to send 130 million refunds by the end of June.
The last checks, except for taxpayers who requested extensions in filing their returns and a few other exceptions, will go out in July.
A diverse group of more than two dozen Americans who tracked how they spent their stimulus payments.

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