OKLAHOMA CITY - Up to 130,000 Oklahomans in arrears on child support payments may not receive the new stimulus checks being issued under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Because of another federal law, the Debt Collection Improvement Act of 1996, the stimulus payments are not exempt from interception for past-due child support. The Oklahoma Department of Human Services (OKDHS) does not have the authority under federal or state law to circumvent or redistribute intercepted monies. The IRS will handle these payments the same as an intercept of a tax refund.
Additionally, unemployment benefits paid under the CARES Act also will be intercepted for past-due child support, according to federal law. The Debt Collection Improvement Act requires the U.S. Department of the Treasury to intercept federal payments to collect past-due child support. For Oklahoma families, the Treasury Department then issues the intercepted money to OKDHS, and federal law then requires OKDHS to distribute the funds as past-due child support.
Money sent to OKDHS via Treasury Department intercept for individual filers will be held by the state for 30 days to verify balances and ensure accurate distribution. Federal law requires states to first withhold any debts owed for public assistance, if any. Remaining money is then applied to child support owed to the custodial parent.
Where Oklahomans who owe child support have filed joint income tax returns, the Treasury Department can intercept the entire stimulus check for that household.
A spouse may file an Injured Spouse Claim and Allocation of a Joint Return (IRS Form 8379) with the IRS to claim his or her portion of the intercepted payment. OKDHS can hold Treasury Department intercepts for up to six months to see whether there is an injured spouse claim when a joint claim has been filed.
More information about federal intercepts can be found at www.okdhs.org by searching keywords “federal tax offset.”