[lilmsmum]

I was in deferment on my student loans. I sent in all my paperwork in on time. Then one day, in my mailbox was a collection notice. I didnt understand so i called the number and tried to go back in to deferment. No luck. So then i tried to make payments
I offered 140/month but they said i had to pay at least 190. I could not pay that much so I am now in default. Since then i have started to pay 125/ monthly but was told if i fiile income tax, they will garnish it for the loans which sucks cuz i always claimed 0 so I could get my money at the end of the year.
My question is, Do they keep all of my return? the lady i spoke to mentioned i may be able to get my EIC and something else back. Any help is greatly appreciated. I really need my return and without it, it will cause my family distress.(no i do not mean i will be unable to vacation or buy a big screen. i NEED it )

[mcmama]

You mean your refund, yes? The return is the paper you file which tells the government what you owe in taxes (or what they owe you).

A lot of this depends on the term of your loans and your lender. If you owe the government money, they will take it any way they can - garnished tax refunds, garnished wages, or putting a lien against property you own. That means that when you sell your house, they get what you owe them before you get anything.

I think your best bet is to contact an accountant. They can explain what you are entitled to, and what you owe. And really, it is better to file a return than not to file - you don't want to be in trouble for back taxes, too.

[MissyChrissy]

If you're married, perhaps you could file married, filing separately, then have your dh file as head of household (making him eligible for the EIC). I don't know if injured spouse would work in this situation...You really do need to talk to an accountant.

[DivasMomma]

Im actually in the same situation...they took all of my $$ last year, all $450 of it haha...luckily DH and I were not married so he claimed our daughter, and got the EIC...problem is this year, we are married and he made WAY to much money for the EIC, but he is going to claim both kids still....question I have is can they take HIS money for my default?? I dont know if i should even file married or not (I never changed anything to my new last name, not SS or my lisence) If we file married he can claim me as a dependent, which would be nice, but not if they are going to take all the money!! Any ideas?

[MissyChrissy]

Originally Posted by DivasMomma

Im actually in the same situation...they took all of my $$ last year, all $450 of it haha...luckily DH and I were not married so he claimed our daughter, and got the EIC...problem is this year, we are married and he made WAY to much money for the EIC, but he is going to claim both kids still....question I have is can they take HIS money for my default?? I dont know if i should even file married or not (I never changed anything to my new last name, not SS or my lisence) If we file married he can claim me as a dependent, which would be nice, but not if they are going to take all the money!! Any ideas?

Just an idea (I'm not an accountant)...ask about "injured spouse" I know when my dh owed money for child support (our daughter) I filed as the injured spouse, and the head of household. Child support could only take his share of the refund, minus the EIC which was all mine. "Injured spouse" simply means the partner isn't responsible for his/her spouses debts, although I only know for a fact that it works in support cases in NY. I don't know about other situations or states. It's worth asking your accountant about, I think.

[Alejandros Mommy]

I wonder if my ex does ^ as I have gotten nothing for Alejandro for years

[MissyChrissy]

Originally Posted by Aiden&Alejandros Mommy

I wonder if my ex does ^ as I have gotten nothing for Alejandro for years

My understanding of this exception is that he wouldn't be able to, but if he were remarried his wife could file injured spouse so HER share of the income tax wouldn't be taken. Make sense? I don't know if I'm explaining it correctly or not...I only know dh owed for a medical bill, and I filed the injured spouse so they wouldn't take MY money (or the EIC) but they did take Rich's. It was about $300 or so.

[DivasMomma]

Originally Posted by MissyChrissy

Just an idea (I'm not an accountant)...ask about "injured spouse" I know when my dh owed money for child support (our daughter) I filed as the injured spouse, and the head of household. Child support could only take his share of the refund, minus the EIC which was all mine. "Injured spouse" simply means the partner isn't responsible for his/her spouses debts, although I only know for a fact that it works in support cases in NY. I don't know about other situations or states. It's worth asking your accountant about, I think.

wait....do I file injured spouse? or does he? Im the one who owes....so he would? TY for the info i didnt even know about that

[DivasMomma]

igonore my last post u answered it haha...i guess we were writing at the same time

[MissyChrissy]

Originally Posted by DivasMomma

igonore my last post u answered it haha...i guess we were writing at the same time

That happens...anyway, I'm not too clear on it myself. I know H&R Block suggested it to us, so that's what we did. I don't know what parameters have to be in place though. Perhaps it's only in NY...or it only applies to child support laws. I don't really know, but I thought it was worth looking in to.