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How will you know if your income tax return will be taken on defaulted student loan?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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can they take my federal income tax if i have been served with a request anw writ for garnishment?
There are specific laws regarding the withholding of your federal income tax returns. The funds can be taken if you owe back taxes, child support arrears and/or defaulted student loan(s). While your wages may be attached for judgments against you (credit cards, loans, etc.) your federal income tax return cannot be used for those debts.
What is the maximum income a full time student can earn and still be taken as a dependent on a federal income tax return?
If the student is under 24 at the end of the year or is totally and permanently disabled, there is no limit. But the student must not provide more than half of his/her own support. Money deposited in a savings account (for example) does not count as support. Otherwise, the student's gross income cannot exceed $3500 and the taxpayer claiming the student on their return must provide at least half of the student's support.
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, 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 the 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.
Can your income tax return be taken if you have judgments?
I think it can be.
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.
Do all states take state tax refunds if a student loan is defaulted?
Actually this is a federal issue. Depends what stage of the default u r at. The irs will put a federal intercept on ur federal return. There is a toll free # u can call to see if there is a intercept on ur fed return. Usually the state return is taken if u owe ur state $
Can a student loan company withhold your income tax returns?
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 interest 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.
How much money is taken out of your check for taxes?
When you have the check in your hand you do not have any more taxes taken out of that check amount until you file your income tax return after the end of the tax year and the amount is included in all of your other gross worldwide income on your income tax return.
What is the maximum income an adult child can earn and still be taken as a dependent on a federal income tax return?
For 2007, the child cannot have gross income of over $3,400.
What happens when you default on your student loans?
Defaulting on loans have pretty severe consequences. For example, your wages could be garnished or your income tax refunds taken from you. In regard to your credit score, the defaulted loans can show up on your history for up to 7 years. To learn more about the consequences, go to http://www.finaid.org/loans/default.phtml.
Do you owe taxes if no federal was taken out?
This is possible but you will not know until you have completed your income tax return correctly.
If your wages have been garnished can they withhold your federal tax return?
Tax refunds can be taken to pay what is called tax liens or offsets. If you owe any unpaid debt to a State or Federal Government Agency then yes, your tax refund will be taken to apply to this debt. Most common item that result in offsets are Defaulted Student Loans, Overpayment of Social Security Benefits, Overpayments of Food Stamps or other social assistance programs, Debt of prior income tax for state or federal taxes, and other government debts that you have with a federal or state agency.
