What would you like to do?
Answer No. When a federally funded student loan is in default the IRS has the legal power to seize the person's refunds until the loan is satisfied or a court order or …decision from the federal tax court invalidates the action. http://www.irs.ustreas.gov However ... If it's YOUR loan and YOUR taxes, no. But if you're asking from a spouse's POV, then yes ... you would file for Injured Spouse with the IRS and at least a portion would be refunded to you. That being said, though, it would increase your spouse's liability.
Can you find out if your tax refund will be taken for a past debt i.e student loans before you file?
Answer Typically a notice via mail is issued prior to the filing period alerting the student loan or child support debtor that their refund may be taken in whole or part… to repay these obligations. 1-800-304-3107 is the best way to find out...it's automated.
Can you stop your tax refund from being taken to pay student loan debt if you made very little money last year?
Your question isn't really a tax one, but an educational loan one. The IRS doesn't really care who it gives the refund to, as long as it is a legal party to receive it. …It has no dog in this fight if you will. What you define as poor and what others, including the government does is probably disparet. Generally, if you made more than 8K, whatever that amount is is able to be used to pay government type debts. Student loans are in a special collection catagory, and even harder to get them to stop collection action on than most debts. I would suggest, as any refund your getting is only because you allowed too much to be withheld from your pay, that you provide your employer a new W-4 and make sure the amount that gets withheld more closely reflects your actual liability...that way next year you won't have (at least much) of another refund to worry about. Of course, to collect they could, and may, just garnish your wages sooner or later.
In the US, the only way you can keep the government from taking your tax return in the future is to consolidate the loans and get them out of default. You can get help with th…e consolidation by clicking on the link at the bottom of this text box. Debt from student loans, especially gove. student loans as well as child support and other government obligations usually can not be discharged. They have to be paid.
Yes, if you are default on your student loans, then your name will be added to the tax offset list by the Dept. of Ed. So your income tax fund check will be applied to your …default student loans. If you need help getting out of default and getting the garnishment lifted, a company called Default Management Services, Inc. can help you. Google the company name to get the phone #. Ask for Doug, he is knowledgeable.
Student loan in default and now your income taxes will be taken even though you made arrangements to pay the student loan how can you prevent this from happening?
In the US, you can rehabilitate your loans through your current lender by making 12 on-time payments or you can consolidate your defaulted loans. Consolidation will allo…w you to receive an income sensitive repayment plan that can be as low as $0 a month, depending on income and dependents. You will also lock in the lowest rates in decades. If you need help witht he consolidation of your defaulted student loans, click on the link at the bottom of this text box.
The Federal Management Service (FMS) applies ('offsets') income tax refunds through the Treasury Offset Program (TOP) to cover non-tax debts such as student loans. FMS sends… you an offset notice when this happens. You can call the Treasury Offset Program Call Center (1-800-304-3107) for specific questions about your defaulted student loan.
No, fed student loans are not income. Unless I'm forgetting something, you get to deduct the interest paid on the loan as you're paying it off. They should send out… a 1098 to report that when applicable. That's the only tax implication...
For delinquent gov't insured or guaranteed loans.
Is your Government student loan forgiven after 25 years if its been taken out of your federal income tax every year since then?
They will take money til They are satisfied. If you did not negotiate a payment schedule and stick to it when you were first contacted, you wil have no idea how much interest …and penalties were assessed against you.You may need some professional debt resolution.
They certainly can take them. They'll let you know if they're going to.
Can both your wages be garnished and your tax refund taken for defaulted student loan or just one or the other?
both...untill its paid off.
Yes. If it's a state sourced student loan,they can hit your state refund annually until it's satisfied-sorry.
Yes, if your at a public school but not at private schools