I have a concern regarding student loan garnishment. My garnished wages are used for payment on my student loan. Will my tax refund also be garnished and applied to student loan debt?
Usually only the state and federal governments are able to take your tax refund, therefore you’ll probably get your refund if your student loan debt isn’t:
- With the state or federal government
- Part of a federally insured student loan program
However, if your student loan debt is with a state or federal government program, they’ll most likely apply your refund to your delinquent student loan balance. You should receive notice if your refund is going to be offset. If you haven’t received notice, contact your student loan provider to determine if they intend to offset your refund.
If you deposit this check in your bank account, it’s possible for private creditors to levy this money.
Related Resources
Learn about the effect tax reform has on filing taxes as a student. H&R Block will help you understand how tax reform changes impact education tax benefits.
Form 1099-MISC can be confusing because it can report various types of income. Learn how to read the 1099-MISC boxes with the experts at H&R Block.
There was not sufficient funds in your checking account to cover your monthly payment. Learn more about IRS notice CP166 from the tax experts at H&R Block.
Learn more about the SALT Deduction, a new federal tax law that caps itemized state and local tax deductions for all filers.
