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The Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay any past--due child support, Federal agency non--tax debts, or state income tax obligations.
For additional information, FMS can be reached at 800--304--3107.
Go to the IRS gov website and use the search box for Topic 203
What else can I help you with?
Will private student loan companies go after a cosigner if you file for bankruptcy?
Gov't backed student loans are exempt from BKruptcy....they will come after you thru tax refunds or garnishment.
What are repurcussions on loan default?
There are many repercussions for defaulting on a student loan. The government will get its money back by garnishing your wages, tax refunds, or any social security benefits. These are serious actions and it is better to work with the loan companies if you can not make payments.
If you are making you monthly payments on your student loan can you still get your income tax at the end of the year?
If you are not delinquent with your student loan, your federal income tax refund will not be garnished.
What is the maximum amount of student loan interest that can be deducted for the 2018 tax year?
For the 2018 tax year, the maximum amount of student loan interest that can be deducted is 2,500.
When can a federal tax return be seized for debt?
Federal tax refunds can be seized by the IRS for tax arrearages without the normal legal procedures being used. Federal and state tax refunds can be seized by a state child enforcement agency for court ordered child support arrearages. Tax refunds cannot be seized for creditor debt, for example, a judgment for non payment of a credit card account. But, once the refund is placed in a bank account it can be subject to levy by a judgment creditor. The Federal Government can also offset your federal tax refund to pay a student loan debt.
Will private student loan companies go after a cosigner if you file for bankruptcy?
Gov't backed student loans are exempt from BKruptcy....they will come after you thru tax refunds or garnishment.
What are repurcussions on loan default?
There are many repercussions for defaulting on a student loan. The government will get its money back by garnishing your wages, tax refunds, or any social security benefits. These are serious actions and it is better to work with the loan companies if you can not make payments.
How will you know if your income tax return will be taken on defaulted student loan?
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.
Can Federal government take state income tax refund for delinquent student loan?
Yes, the federal government can garnish state income tax refunds to collect delinquent federal student loans. This process typically involves the Treasury Offset Program, which allows the U.S. Department of the Treasury to intercept tax refunds to recover federal debts, including unpaid student loans. However, specific state laws may also impact how this process works, so it's important for individuals to check their state's regulations.
If you are making you monthly payments on your student loan can you still get your income tax at the end of the year?
If you are not delinquent with your student loan, your federal income tax refund will not be garnished.
Is federal income tax refunds taxable?
No. Federal tax refunds are not taxable. In some cases, state tax refunds are taxable.
What is the maximum amount of student loan interest that can be deducted for the 2018 tax year?
For the 2018 tax year, the maximum amount of student loan interest that can be deducted is 2,500.
Can a creditor put a lien on my federal income tax refund?
A creditor can put a lien on federal income tax refunds and usually will when the debt is that of a student loan or child support. Other creditors can if the right paperwork is filed within a specified time frame to the IRS.
Can you go to jail for unpaid student loan?
While you cannot be arrested for simply not paying your student loans, your wages can be garnished, your tax refunds may be withheld, and your credit score can be adversely affected. It is important to communicate with your loan servicer to discuss repayment options or potential deferment or forbearance.
When can a federal tax return be seized for debt?
Federal tax refunds can be seized by the IRS for tax arrearages without the normal legal procedures being used. Federal and state tax refunds can be seized by a state child enforcement agency for court ordered child support arrearages. Tax refunds cannot be seized for creditor debt, for example, a judgment for non payment of a credit card account. But, once the refund is placed in a bank account it can be subject to levy by a judgment creditor. The Federal Government can also offset your federal tax refund to pay a student loan debt.
Where can I learn about tax refund advance?
A tax refund advance is a small loan you can take out for the expected amount of your tax return. Companies such as H&R block offer these type of refunds.
Can your student loan take your federal tax refund?
YES
