Stimulus payments being cut for some with government debts

[turbinetree]

Source: Politico

FINANCE & TAX
Congress allowed the reductions for people behind on taxes, student loan payments and other obligations

By AARON LORENZO

01/29/2021 02:14 PM EST

Millions of people who owe taxes and other money to the government are seeing their economic stimulus payments cut or wiped out to cover the debts because Congress peeled back a protection that had been in place for months.

The cuts may be particularly hitting those most in need of relief money because of the coronavirus pandemic, including veterans, Social Security recipients and students.

The problem has arisen because the IRS is redirecting stimulus payments for some people to settle unpaid federal and state taxes, Social Security and Veterans Affairs debts, student loan debt and child support obligations, according to the Taxpayer Advocate Service, an in-house IRS watchdog.

Read more: https://www.politico.com/news/2021/01/29/stimulus-payments-government-debts-463802

[jimfields33]

1. I didn't think of this before,

But I think they should have suspended interest on owed government money during the coronavirus. 7 percent is a lot without coronavirus, but ridiculous with the coronavirus and many losing their jobs.

[Demovictory9]

2. Sad

[Grasswire2]

3. But I thought student loan payments were in abeyance. nt

[Baked Potato]

4. Child support should have been taken out the first time too.

[TexasBushwhacker]

8. Back child support was the only thing withheld last time

I'm fine with that. The government can wait.

[Baked Potato]

9. Yes, agreed.

I think it was Bill Clinton who signed a bill making it law that back child support got paid before any government money went out.

[ForgoTheConsequence]

5. Cruel.

VA debt? Really?

[Nexus2]

6. Well, this likely wipes out mine [nt]

[yourmovemonkey]

7. Well, gee!

Who's in a group most likely to need stimulus?
I'd guess it would be folks having trouble with debt.
This completely defeats the purpose of a stimulus.

[bonniebgood]

11. how is this fair? if you got laid off because of the virus and can't pay your rent or mortgage,

you're behind on everything , Geese, CONGRESS peeled back a protection? Which Congress and when ? Please explain?

[EndlessWire]

12. Sometimes you just can't fight anymore.

Sometimes you just want to lay down and die. And, they think they are so fine, allowing us all to have our own money...I consider it cruel that they allowed us to think we were getting more needed money. And now, some are not.

I also thought that student loans were put in abeyance, but I guess not.

I feel jerked around. Never planned to be anything but independent, but this sucks. So many people hurting. You can't plan a budget around nonexistent money. Repubs got what they wanted. We should complain.

[Skittles]

14. never give up, EndlessWire

we will fight these fascist bastards, yes we will

I too notice how repukes are always complaining about minium wage but never maximum wage, such as CEOs making hundreds times more than their workers.....yup.

[Skittles]

13. this seems to defeat the purpose of a stimulus

ya know?

[artemisia1]

15. Exactly. But it makes the Republicans happy because it hurts people... /nt

[Skittles]

16. it's the only time they care about "wasting money"

when it may benefit some.....brown people

[MichMan]

17. Why did the House agree with this?

[mvd]

18. I owe student loans (and they were transferred to the Department of Education)

But it doesn’t appear my stimulus was affected. Mine will be mailed Feb 2.

Also, I thought payments were still deferred?