Your second payment will not be offset (garnished) for any Federal or state debts and is protected from garnishment, per IRS, even if it's on your 2020 income tax return.
Your first stimulus money:
- The CARES Act limits offsets of Economic Impact Payments to past-due child support.
- No other federal or state debts that normally offset your tax refunds will reduce the payment.
- Nevertheless, tax refunds paid under the Internal Revenue Code, including the Economic Impact Payment, are not protected from garnishment by creditors once the proceeds are deposited into an individual’s bank account.
- See Economic Impact Payment Information Center — Topic D: Receiving My Payment.
Note: The stimulus payments are not taxable income.
For additional information, see How will the second stimulus impact me?
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