I have a TP that is asking how he can avoid having his refund check taken by the IRS for non payment of his student loan. Other than paying for the loan itself I don't know of any way. Do any of you? Thanks for any help.
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Student Loan
If the return is MFJ, they may benefit from the injured spouse process. Depends on which spouse owes the money, who has more income, who has more withholding, and some other variables.
Is the loan in default? If he's only behind a couple payments, that may not be an issue.
The taxpayer can call the Financial Management Service at the US Treasury Department. They have an automated telephone system that will tell him whether a tax refund would be used to offset any debts, and if so, the name of the creditor. The system is updated daily, in near-real time. Don't have the number handy...
BMKBurton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process. -
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Student Loan, Part II
Going forward, the taxpayer could reduce his withholding, so that next year, he doesn't have a refund.
They won't take his refund to pay the student loan if he doesn't have one.
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
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Thanks!!!
Great answers that I will follow up on. He will surely be pleased. I will give him the phone number and other info.Comment
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On the other hand...
...he could just pay the loan as promised.
(I bet his credit history requires the presence of a nearby fire extinguisher.)
FEComment
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I hope you're getting paid for the tax prep BEFORE you deliver the returns! (And make sure their check clears.)Comment
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