Rebate Checks Diverted

I was reading through this article and thought it was very interesting. It looks like the Treasury Department has the power to divert the stimulus checks that are coming to you and use it to pay off some of your debts. Some of the debts the Treasury Department is collecting on are child support, student loans, and back taxes.

So far, 1.8 million rebate checks have been intercepted by Treasury Department computers showing that individuals owe money to federal or state governments. The biggest beneficiaries: parents who are owed child support.

The Internal Revenue Service has mailed 77 million checks worth $64 billion — a little more than half the expected total.

Rebate ChecksSo far, nearly $1 billion has been collected. Where it has gone:

  • 55% for child support.
  • 39% for federal debts such as student loans or farm loans.
  • 6% for unpaid state taxes.

Taxpayers denied their rebate get letters explaining why they got a reduced payment or none at all.

The diverted money is sent directly to the family or government agency to which it was owed.

I believe this is so good. If the money was not taken directly, most of the money would never have gone to paying off the debt. This is quite unexpected and I believe it was a good move.