Is it true that the US Department of Education will not take your tax return

Forum|Forum|6 years ago
April 12, 2020
3 replies
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The Department of Education has been taking my tax return for a defaulted loan. Is it true that due to COVID-19 They are not going to this year?

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Wylesong

Honestly I am not sure about this and feel like its a game of luck. I have had them take my return the past few years and this year I could not even File until April 3rd. I mean I read EVERYWHERE that practically all types of garnishment were suppose to be suspended if you filed after either March 5 or 13th something like that until September 30th. I however got this message on the Wheres my refund app after my tiny refund was approved and ready to send to me.

"Your tax refund has been approved for direct deposit"

"However, it may be partially or completely reduced to pay a past due obligation, such as child support, another federal agency debt, or state income tax. If so, the Bureau of the Fiscal Service (BFS), who issues IRS refunds, will send you a notice with the amount of the debt and contact information. The details of the debt are not provided to the IRS. This application will be updated with the refund amount remaining, if any, after the debt is deducted."

I am not sure what to expect but I kind of seen this coming. I figured it was to good to be true and I am also assuming if they kept my very small refund and ignored the in place wont and cant collect my refund order than I am not holding my breath on getting that stimulus check either. I mean that check everyone is getting is almost triple my return so if they kept my return why would they give me the stimulus.

Sorry I am not much help but I am just as confused as you and actually kind of mad because I cannot find any answers.

DavidS127

As of 3/13/2020 the U.S. Department of Education has suspended collection of student loan debt. According to the U.S. Department of Education website at this link and pasted here:

Questions About Defaulted Loans

UPDATED: On March 25, 2020, ED announced that my federal tax refund would not be withheld to repay my defaulted federal student loan debt. My refund has already been taken. Will I get it back?

Yes, but only if your federal tax refund was in the process of being withheld—on or after March 13, 2020, and before Sept. 30, 2020—for the repayment of a defaulted federal student loan.

Your federal tax refund will not be returned to you if the process to withhold your refund was completed before March 13, 2020.

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Wylesong

I have to ask does that mean if you filed lets say in January and the IRS took your return you won't get it back.

However if you were someone like me and yes they have taken my past returns, but I could and did not file until April 3rd this year, a clear almost month after the issue of the Crisis order thing, would I still get my refund even though they are saying they may hold it to pay back loans? I got this message,

"Your tax refund has been approved for direct deposit"

Will I or should I still get my tiny return because I filed very much after March 13th, I filed on April 3rd. Does that mean I will or can get my refund because they did not try to take my refund until April this year?

DavidS127

If you want to know more about whether your student loan "offset" taken after 3/13/2020 will be refunded, you should call the Education Department's Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923).

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Wylesong

I have an update! I did get a notice that my money was gonna be taken but I waited to see what happened and I got my refund without needing to call anyone. I hope that helps or gives you some answers.