Applying stimulus check toward back taxes?
Thursday, May 20th, 2010 at
5:47 pm
I owe some back taxes to the IRS and am enrolled in a repayment plan. The stimulus check will be more than enough to settle this debt. I didn’t get direct deposit and my SSN ends in 90 so I’ll get my check in July sometime. My question is when will the stimulus check get applied to my bill?
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If you are on a payment plan it is a bit unclear if the stimulus will be applied to that bill. If it is that will happen in July if that is when your check is scheduled to be mailed.
If you owe the IRS your rebate will be applied against the debt. Refunds are always captured and applied against tax debts even if you are on a payment plan and are current on your payments. This is explained in detail in the agreement that you signed with the IRS. The rebates are treated as any other refund when it comes to offsetting any debts.
If your rebate is large enough to pay your debt off completely then you will receive whatever is left after the debt is paid.
It should get applied the week that the paper check would have been written. So you should expect your back due to be done at that time and within a week or so get a check for what is left.