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If i start paying back a student loan will they still take my income tax

My husband has a loan for almost $9,000. he received court order letter for his check to be garnished, 15% of it. my question is if they garnish his check and he is paying it slowly, will they still take his income tax when he files for the loan even though he is paying? because i know when you don't pay at all they take your income taxes.

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Asked by raunchy46 at 12:00 PM on Dec. 20, 2008 in Money & Work

Level 1 (-10 Credits)
Answers (6)
  • You have to call the loan company & make arrangements like you have but be sure to ask them what you need to do to insure your taxes are not being taken. If hes being garnished then that can seem like a *forced* pay back of the loan so they could take them. I actually contacted my loan company and had them sell my loan to Direct Loans. They go based on income and fixed the whole situation for me. Maybe you can try and call them.

    Answer by gemgem at 12:08 PM on Dec. 20, 2008

  • They can. I would definitely call whoever is handling the loan to see what they plan to do. And from experience, don't count your chickens until the money is in the bank. Just because they tell you they won't do it, doesn't mean that they won't do it.

    Answer by Anonymous at 12:38 PM on Dec. 20, 2008

  • If you rectify the loan they will stop your spouse's check garnishment and stop taking your income tax refund. Right now, they will most likely still take your income tax return due to failure to comply to the terms of the loan.

     If his check is being garnished and your tax refund being taken, it is because you have failed to WILLING pay for the student loans. Keeping your student loans current is paramount if you want to not have wage garnishment and it also affects your credit rating.


    Answer by Tetona at 12:42 PM on Dec. 20, 2008

  • You can also file for spousal protection - I don't know if you work, but if you file jointly you can appeal getting your portion of the return. My friend had to do this, her husband made very little - he was a student and on VA disability - she brought in the lions share but they took her 5k return. I believe she appealed under injured or innocent spouse laws and got a large portion returned to her. Good luck!

    Answer by Serafyna at 1:57 PM on Dec. 20, 2008

  • I think because they had to get a court order to get any money from you they'll take the tax return. At least it should get you caught up on payments tho. After you're caught up I think you can ask for the garnishment to be removed and just make the payments yourself. Most student loans are loans from the gov't and they want their money no matter what

    Answer by thats_karma at 4:32 PM on Dec. 20, 2008

  • If they already have a court order to garnish his check then they have the right to take his income tax even if he is paying on it. Now if you recieved a letter and you called and worked out an arrangement before they put the garnishment then you shouldn't have to worry about anything.

    Answer by tpalmer at 2:46 PM on Dec. 21, 2008

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