Understanding Trump Payments and Tax Refund Offsets
What a Trump Payment Is and How It Affects Your Money
A Trump payment is a one-time payment sent to individuals during the COVID-19 pandemic under the CARES Act (2020), the CRRP Act (2021), or the American Rescue Plan (2021). The federal government called these Economic Impact Payments or stimulus checks. Most people received them by direct deposit to their bank account, by mail as a paper check, or on a debit card.
If you did not receive a payment you believed you were owed, or if you received one but it was later offset (reduced or withheld) to pay back taxes or other federal debts, understanding how that offset works can help you track down what happened to your money and what your options are.
Key Takeaways
- Trump payments were one-time federal payments sent between 2020 and 2021; most people received them automatically if they filed taxes or received benefits.
- The IRS can offset (withhold) a Trump payment to cover unpaid federal income taxes, but not to cover state taxes, child support, or other debts.
- If your payment was offset, the IRS sends a notice explaining the reason and the amount withheld; you can request a payment trace if you never received the payment at all.
- You can dispute an offset or request a reversal if you believe the debt was paid, discharged in bankruptcy, or incorrectly attributed to you.
- If you did not receive a payment and cannot locate it, you can claim it on your tax return or contact the IRS directly for a payment trace.
Why Your Trump Payment Might Have Been Reduced or Withheld
The federal government used Trump payments to offset certain debts before the money reached your bank account. The IRS withheld payments to cover unpaid federal income taxes from prior years. The Treasury Department also withheld payments to cover debts owed to federal agencies — for example, unpaid student loans in default, overpaid unemployment benefits, or money owed to the Social Security Administration.
State taxes, child support, and other non-federal debts were not taken from Trump payments. If your state or a child support agency took money from your account after you received the payment, that was a separate action and not part of the federal offset process.
You would have received a notice in the mail if your payment was offset. The notice came from the Bureau of the Fiscal Service (part of the Treasury Department) and listed the amount withheld and the reason. If you received a payment but it was smaller than you expected, check your mail for this notice or log into your IRS account online to see the payment history.
How to Find Out What Happened to Your Payment
Start by checking whether you received the payment at all. Log into your IRS account at irs.gov and select "Get Transcript" to view your account. The transcript shows the date the payment was issued and the method (direct deposit, check, or debit card). If the transcript shows a payment was issued but you never received it, you can request a payment trace from the IRS.
To request a payment trace, call the IRS at 1-800-829-1040 (Monday through Friday, 7 a.m. to 7 p.m. your local time). Have your Social Security number, filing status, and the tax year ready. The IRS will investigate whether the payment was sent to the correct bank account, address, or debit card. A trace can take up to 120 days.
If the IRS confirms the payment was issued but you still have not received it after 120 days, you can claim the payment on your next tax return. You will need to file Form 1040 (U.S. Individual Income Tax Return) and include the payment amount as a credit. The IRS will then issue a replacement payment or apply it to any taxes you owe.
Disputing an Offset or Requesting a Reversal
If your payment was offset and you believe the debt was already paid, discharged in bankruptcy, or incorrectly attributed to you, you can dispute it. The notice you received in the mail will include instructions for filing a protest or requesting a review. You typically have 60 days from the date of the notice to respond.
To dispute an offset for unpaid taxes, contact the IRS directly at 1-800-829-1040 or visit your local IRS office. Bring documentation showing the debt was paid (a cancelled check, bank statement, or receipt from the IRS). If the debt was discharged in bankruptcy, bring a copy of your bankruptcy discharge order.
To dispute an offset for a federal agency debt (such as student loans or unemployment overpayment), contact the agency that issued the debt. The notice you received will name the agency. You can also submit a written request to the Bureau of the Fiscal Service, which manages the offset program. Include copies of any documents supporting your claim that the debt was paid or should not have been offset.
What Happens If You Owe Back Taxes and Received a Trump Payment
If you owed federal income taxes from a prior year when you received a Trump payment, the IRS offset the payment automatically — you did not have to do anything. The offset reduced the amount you received, but it also reduced the amount you owed. The IRS applied the offset to your oldest unpaid tax debt first.
After the offset, you may still owe additional taxes. You can set up a payment plan with the IRS to pay the remaining balance over time. Call 1-800-829-1040 or visit irs.gov to set up an installment agreement. You can also request an offer in compromise if you cannot pay the full amount — this is a settlement where the IRS accepts less than you owe, though approval is not common.
If you believe the offset was applied to the wrong tax year or the wrong person, contact the IRS to correct the record. Bring your tax returns and any notices from the IRS showing what you owe.
Tracking Your Payment If It Was Sent by Mail or Debit Card
If your payment was issued as a paper check, it may have been lost or delayed in the mail. Paper checks from 2020 and 2021 are no longer valid — they expired after 12 months. If you received a check but did not cash it within that time, you cannot deposit it. Instead, request a replacement payment by calling the IRS or filing a tax return claiming the payment as a credit.
If your payment was issued on a debit card (sometimes called an EIP card), the card was mailed to your address on file with the IRS. If you did not receive the card, contact the card issuer — the notice you received will name the company. The issuer can reissue the card or transfer the balance to your bank account. If the card was lost or stolen, report it immediately to prevent unauthorized use.
Frequently Asked Questions
Can the IRS take my Trump payment to pay state taxes or child support?
No. The IRS only offset Trump payments for federal income taxes and debts owed to federal agencies. State taxes and child support are handled separately and cannot be taken from a Trump payment. If your state or a child support agency took money from your account, that was a different action.
I received a smaller payment than I expected. How do I know if it was offset?
Check your mail for a notice from the Bureau of the Fiscal Service. The notice explains the offset amount and reason. You can also log into your IRS account at irs.gov and view your payment history. If you cannot find a notice and the IRS account does not show an offset, contact the IRS at 1-800-829-1040.
My payment was offset for back taxes I already paid. What do I do?
Contact the IRS at 1-800-829-1040 with proof that the debt was paid (a cancelled check, bank statement, or IRS receipt). Bring the documentation to your local IRS office or mail it to the address on your offset notice. The IRS can reverse the offset and issue a replacement payment if it confirms the debt was paid.
I never received my Trump payment. Can I claim it on my tax return?
Yes. If the IRS confirms the payment was issued but you did not receive it after 120 days, you can claim it on your next tax return as a credit. File Form 1040 and include the payment amount. The IRS will then issue a replacement payment or apply it to any taxes you owe.
What if I received a Trump payment by mistake or I was not supposed to get one?
Contact the IRS immediately at 1-800-829-1040. The IRS may ask you to return the payment or offset it against future refunds or payments. If you spent the money and cannot repay it, explain your situation to the IRS — they may work out a payment plan or, in some cases, waive repayment if you can show financial hardship.