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Can taxes be taken for student loans?
In the US, it depends on whether your loans are with DIRECT or FFELP. If you have FFELP loans, you are eligible to consolidate. If you have direct loans and have never consoli…dated before, then you are eligible. If you previously consolidated your FFELP loans, then you may be eligible to reconsolidate. If you previously consolidated your Direct loans, then you are not eligible to consolidate again. If you need help getting out of default, click on the link at the bottom of this text box.
You can but as soon as your parents file their taxes you will have to amend your FAFSA application and it may alter the amount for which you are eligible in student financial …aid.
No. Student loans are borrowed money, and is not considered "income;" therefore, you do not include them on your taxes.
Student loans are not reported as income on the tax return. The interest you pay on a student loan is deductible as long as you meet certain criteria such as Income limit…ations, use of the funds, status when loan was incurred. If funds were used for education expensed they are eligible for the education credits if you met all the conditions. For complete rules see IRS website irs.gov
The government can offset refunds by what it is owed...(the money would go to the student loan program).
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.
Yes, if you have defaulted on a student loan your taxes can in fact be taken by the government to repay the loan. Please note that they will also charge additional interes…t as well as penalties. If you have made payment arrangements with a your guarantor once you have made 4-6 consecutive monthly payments you can have the withholding released.
Yes: Any money that you have coming from federal or state will be taken. A letter will arrive stating that a debt has been forwarded to the Franchise Tax Board that you owe on… behalf of the IRS. Its really a sad situation!
If your student loans are being garnished, you can count on your name being on the tax offset list, meaning that they will apply your refund amount to your loan repayment. …If you need help getting out of default, or getting a garnishment lifted, then contact Default Management Services, Inc. for help. You can Google the name for a phone #. Ask for Doug, he is knowledgeable.
yes - it can be garnished for any federal obligations
I believe that any tax refund to which you think you may be entitled was diverted to pay down the debt of your student loan obligations. Your federal income tax will be applie…d to any federal student loans that are in default. The only way to stop garnishment is to enter into a repayment agreement with your loan holder and make payments for 6 months. Your state income tax is not garnished. The refund is applied to the interest owed so your principal balance never actually decreases. You can change your W2 status so that less taxes are taken from your paycheck. But be careful to ensure that enough taxes are taken out to pay your tax deduction or you may have to pay at tax time. If you're single with a standard deduction you usually pay $2,500 in taxes (check IRS tax tables). Once you have paid that much in taxes, change your W2 status so you take home more pay. Then you won't get a tax refund to be garnished. you got your money as pay.
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.
You can find out if you have a student loan tax refund lien by calling the IRS. The phone number is (800) 913-6050.
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.
If you are in the U.S., then the answer is definitely yes. You still have time to get out of default before filing your tax return. There are only 2 ways to get out of defaul…t on your Federally Guaranteed student loans. Contact your collection company or student loan servicer and request to enter the rehabilitation program. Most people qualify, but I have seen some refused when the default is over 10 years old. In the rehabilitation program, you will need to make 9-12 on-time payments in addition to your garnishment. After the 9-12 on-time payments, they should stop the garnishment, but you will stay in a default status until your Rehabed loans are sold to a new lender. In the past, that was an easy process, but in these turbulent financial times, other lenders are not buying rehabed loans. So, with this option your loans will stay in a Default status for the forseeable future.The second way you can get out of default and have your garnishment lifted is to consolidate your loans. These days very few Federal lenders will consolidate defaulted loans and your lender will probably not release the loan for consolidation while in a garnishment stage. The good news is, there are a few companies out there that will help you get a garnishment lifted and find a Federal lender to consolidate the loans. If you need additional help getting your loans out of default, click on my user name, "studentloaner", below.
If it is in deferred status, they will probably not tax your tax refund. If your student loan is delinquent, then they will be retaining you refund and putting it toward y…our debt.