Why are certain child support payments from the 2020 Federal Tax Refund Offsets delayed?

Publication Date: October 27, 2020

Answer

Typically, states can only hold federal tax refund offsets for specified timeframes in accordance with federal requirements. Because of the unprecedented conditions from COVID-19, and the IRS’s recent issue of portions of Economic Impact Payments made under the CARES Act to the unobligated spouses of parents who owed past-due support, child support agencies received permission to hold offsets beyond the normal timeframes, or until June 30, 2021, in some cases.

Economic Impact Payments under the CARES Act made to noncustodial parents who owe past-due child support are subject to offset just like an income tax refund under the Federal Income Tax Refund Offset Program.

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