Can the IRS take my refund for my wife's student loans?

Asked by: Adela Jerde  |  Last update: February 9, 2022
Score: 4.5/5 (47 votes)

If you're married and you file taxes jointly, the IRS may take your entire tax refund regardless of whether your spouse has any student loan debt of their own. However, it may be possible to get your spouse's portion of the refund returned to them if you file an injured spouse claim form (IRS form 8379).

Will the IRS take my refund if my spouse owes student loans?

Unfortunately, filing taxes jointly with your husband means that both your tax refunds could be garnished. As you know, defaulting on federal student loans can lead to the garnishment of your wages and tax refund. If your student loans are in default, the IRS could intercept your returns to collect.

Can a spouse be held responsible for student loan debt?

In most cases, marriage does not make you automatically responsible for your spouse's student loan debt. In fact, unless you live in a community property state, refinance your loans together, or decide to be a cosigner for their loans, you are not legally obligated to repay their debt.

How do I file taxes if my spouse owes student loans?

We will generally do the following:
  1. Use your joint income for an income-driven repayment (IDR) plan if you and your spouse file a joint tax return.
  2. Use only your income if you file taxes separately from your spouse.
  3. Reduce your payments to account for your spouse's student loan debt if you file taxes jointly.

Will IRS take refund for student loans 2021?

If you default on a federal student loan, your tax refunds can be taken to help cover what you owe. However, the government has paused this program and other collection activities through May 1, 2022, due to the pandemic.

VERIFY: Will the IRS take your tax refund if you owe federal student loans?

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Will the IRS take my refund for student loans 2022?

Tax-Refund Offset Coronavirus

Even if you owe student loans, you still can get your tax refund due to the Covid-19 pandemic. ... When the freeze ends May 1, 2022, the IRS will be able to take tax refunds and apply them to student loans, child support, and other delinquent debts owed to state and federal agencies.

How can I stop student loans from taking my taxes?

How to avoid a tax offset in the first place
  1. Make your student loan payments on time. ...
  2. Consider deferment or forbearance. ...
  3. Consolidate or refinance your student loans. ...
  4. See if you qualify for a student loan forgiveness program.

Does my husband's income affect student loan repayment?

If you have federal student loans and are enrolled in an income-driven repayment (IDR) plan, getting married can affect your payments. ... The one exception is Revised Pay As You Earn (REPAYE). Even if you file your returns separately, REPAYE includes your spouse's income in its calculation.

Does marriage affect student loan repayment?

If you're on an income-driven repayment plan for your federal student loans, getting married could affect your payments. If you file your taxes as “married filing jointly,” your income and your spouse's income will be combined into one adjusted gross income. As a result, your bill could increase.

Does my spouse's income count for student loan repayment?

As a general rule: If you file a joint federal income tax return with your spouse, we're going to base your student loan payment on your joint income. If you file a separate federal income tax return from your spouse, we're going to base your student loan payment on your individual income.

What happens if your spouse dies with student loans?

What happens to federal student loan debt when you die? If you die, your federal student loans will be discharged, meaning no further payments will be required. Your parent, spouse or another person you appoint will need to submit proof of death to your loan servicer.

Should I pay off my wife's student loans?

If your husband or wife is a cosigner on the loan, he or she is equally responsible for the full amount. So if you stop making payments, your spouse is on the hook as well. If you took out your loan before you got married, then your spouse isn't required to pay it during the marriage or if you get divorced.

Does my student loan affect my husband?

If you cosigned on your spouse's student loans at any time, whether they're federal loans, private loans, or refinanced loans, that means you are legally liable for those student loans. ... If your spouse dies or is otherwise unable to pay back their loans, the lender will look to you to pay them back.

Are student loans being garnished in 2021?

The suspension on federal student loan payments and garnishments was extended to May 1, 2022, from Jan. 31, 2022, the Education Department said in a Dec. Student loan payment relief during the coronavirus pandemic started under a 2020 directive issued by ... ...

How do you find out if my tax return will be garnished?

Process. Phone FMS at 800-304-3107 to determine which organization will receive your garnished refund. Also, you can call the IRS at 800-829-1040. Provide your taxpayer identification number and inquire whether or not a garnishment is pending on your tax refund.

Do I want to repay my loans jointly with my spouse?

No. The law no longer allows married borrowers to consolidate their loans into a single joint consolidation loan. If you and your spouse both want to repay your loans under an income-driven repayment plan, you must apply separately.

Do student loans disappear after 7 years?

Do student loans go away after 7 years? Student loans don't go away after seven years. There is no program for loan forgiveness or cancellation after seven years. ... You'll still owe the debt until you pay it back, it's forgiven, or, in the case of private student loans, the statute of limitations runs out.

Can the IRS take my whole refund for student loans?

In the case of federal student loans, the Department of Education may send the Treasury a request to seize your tax refund to put toward defaulted loans. If they do this, they can take your entire tax refund. If the debt is paid off and any amount of your refund remains, it will be returned to you.

How much of your tax refund can student loans take?

The Treasury Offset Program offsets refunds for unpaid student loans, defaulted Federal Employee Retirement System (FERS) contributions, and more—and can use up to 15% of your federal income tax refund towards this purpose.

Will IRS offset my refund 2021?

(Since the offer was accepted during the 2020 tax year, the refund associated with the 2020 tax return was subject to offset). ... They file their 2021 tax return on April 15, 2022 showing a refund. Under the new policy, the IRS will not offset that refund, allowing the taxpayer to receive the refund.

How do I stop the IRS from taking my refund?

Send in Form 433-A with any necessary documentation and wait for a response. If you qualify, you are switched to Currently Not Collectible status, and the IRS doesn't garnish your refund. Talk with your tax advocate about how long this status will be in place and what your next steps should be.

Can my student loans be forgiven if my spouse is disabled?

Can my student loans be forgiven if my spouse is disabled? You cannot get your federal student loans forgiven if your spouse is disabled. However, your spouse may be eligible to have their student loan debt forgiven through the Total and Permanent Disability Discharge Program.

What debts are forgiven at death?

What Types of Debt Can Be Discharged Upon Death?
  • Secured Debt. If the deceased died with a mortgage on her home, whoever winds up with the house is responsible for the debt. ...
  • Unsecured Debt. Any unsecured debt, such as a credit card, has to be paid only if there are enough assets in the estate. ...
  • Student Loans. ...
  • Taxes.

Are student loans forgiven after death?

If you die, then your federal student loans will be discharged after the required proof of death is submitted.

Is my student loan forgiven after 20 years?

Are student loans actually forgiven after 20 years? Student loans may be forgiven after 20 years if you meet a few requirements. If you're looking for 20-year student loan forgiveness, then you'll want to opt for an income-driven repayment plan (IDR).