i cosigned for private school loan and it defaulted how much of my taxes can the irs take for the garnishment?

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I cosigned for my sister on a private school loan and she defaulted. The courts charged me and I have a garnishment against my wages. My question is can the IRS take both my state and federal returns for repayment?

  1. Reply
    Go with the flow
    June 8, 2013 at 7:58 am

    They will just go after your federal.
    State refunds are usually small. But they can go after them also.

  2. Reply
    June 8, 2013 at 8:02 am

    You can call the IRS to see if there are debts connected to your SSN. That way you will know what will be garnished.

  3. Reply
    June 8, 2013 at 8:53 am

    private school loans are entirely yours and your sister’s responsibility, the IRS does not offset private loans
    and no, IRS can in no way take your state refund

  4. Reply
    June 8, 2013 at 9:41 am

    Topic 203 – Refund Offsets: For Unpaid Child Support, And Certain Federal, State, and Unemployment Compensation Debts
    The Department of Treasury’s Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through this program, your refund or overpayment may be reduced by FMS and offset to pay:
    •Past-due child support
    •Federal agency non-tax debts
    •State income tax obligations, or
    •Certain unemployment compensation debts owed a state. (Generally these are debts for compensation that was paid due to fraud or for contributions due to a state fund that were not paid due to fraud)
    You can contact the agency with which you have a debt, to determine if your debt was submitted for a tax refund offset. You may call FMS at the number below for an agency address and phone number. If your debt was submitted for offset, FMS will take as much of your refund as is needed to pay off the debt and send it to the agency you owe. Any portion of your refund remaining after offset will be issued in a check to you or direct deposited for you.
    FMS will send you a notice if an offset occurs. The notice will reflect the original refund amount, your offset amount, the agency receiving the payment, and the address and telephone number of the agency. FMS will notify the IRS of the amount taken from your refund. Contact the agency shown on the notice if you believe you do not owe the debt or you are disputing the amount taken from your refund. If a notice is not received contact FMS at 800-304-3107 or TDD 866-297-0517. The available hours are Monday through Friday 7:30AM to 5:00PM CT. Contact the IRS only if your original refund amount shown on the FMS offset notice differs from the refund amount shown on your tax return.


    Hope that you find the above enclosed information useful. 01/06/2013

  5. Reply
    June 8, 2013 at 10:27 am

    Only federal or state loans can take your tax return. Private loans can’t.

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