If I owe student loans will the IRS keep my income taxes?

Question

I owe money on student loans that I haven't been able to pay on because of hardship so when I file for my taxes next year will they keep my taxes?

Answer 1

That depends upon the student loan program you used. If you have *government-backed* student loans that are in default the tax authorities will capture any refunds you have due if collection has been turned over to FMS. If you have *private* student loans in default they are NOT subject to capture and are considered an ordinary commercial debt.

Answer 2

The government will always keep your taxes that are legally due.

In your case, if you have a tax refund coming, the government will keep that to pay your student loans if you are in default on your loans.

Answer 3

You should have your payments deferred where you can start your payments all over again. But if you dont request this, yes, you will have your income tax garnished. It does help pay it off though. It took me several years of just having my income taxes garnished, but now my student loan is finally paid off.

Answer 4

i'm uncertain approximately everyones solutions here.whilst it first replaced into out on the information it replaced into called a "rebate" no longer a reimbursement and it suggested each physique might get one regardless despite if or no longer they owed taxes or no longer ! i might in simple terms wait and notice, alot of individuals are speculating approximately this subject count ! I even have finished my examine....

Answer 5

I agree with everyone.. Try to set a payment plan up with them and maybe they won't take your refund! and the guy above me made a lot of sense too!

Answer 6

If your loans are considered to be in default, yes they will. If you have made payment arrangements, maybe not.