Can I get an income tax return with student loan wage garnishment?

Question

I am in default on my student loan. My wages are being garnished to repay the debt (actually began last April). Will they still take the income tax return (if there is one) as well?

Answer 1

Yup. If you are in default on a student loan or have any type of debt to the Federal Government (such as a fine for violating Customs regulations) they'll take it out of your tax return. And if your tax return won't cover it this year, they'll keep taking your entire tax return for the next several years until your debt is paid in full.

Answer 2

Yes, they can. If you are working with a Student Loan agency that is helping you to rehabilitate your credit status, they could have already taken it out of default status, if not, shop around. If they are still showing as defaulted, yes the IRS will probably cross collect from them. If this is causing a true hardship, you can contact IRS 1-800-829-1040 and request the help of a Tax Payer Advocate. You will have to document the fact that not receiving any or part of your refund will cause you a real hardship.
You can call 1-800-304-3107. This is the US Treasury offset division, and they can tell you if your refund will be offset against a Federal debt.

good luck & blessing

Answer 3

In order not to disappoint yourself and to be on the safe side, you should assume that yes, they will.

That having been said, if I'm not mistaken, wage garnishment is independent from tax levies, meaning it is a separate procedure to take your return vs. your wages.

At least in the case of private sector, it is like that.
But you do own the debt to the government...

Which is not to say they will not take it, but as far as I know they will have to induce this process separate from the original garnishment, which means they would have to take an extra step.

And thus, hopefully they will not.