Attorney General James issued an official guidance: NYS banks, creditors & debt collectors CAN NOT garnish CARES Act stimulus payments. She also asked banks not to take stimulus money to pay off negative balances or other money that you owe to the bank itself. However, if you owe child support, your stimulus payment may still be subject to garnishment.
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The IRS is taking new steps to ensure people with children receive $500 Economic Impact Payments.
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