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.
Learn more about letter 2050, why you received it, and how to handle an IRS bill for unpaid taxes with help from the tax experts at H&R Block.
Learn about the consequences and complications of an unflied tax return from the experts at H&R Block.
If you can't pay your taxes and request an IRS installment agreement, the IRS may need to determine your ability to pay using specific calculations.
Learn more about form CP59 and how to handle an IRS CP59 notice with help from the tax experts at H&R Block.