Hello. Last year, my entire tax refund got garnished due to student loans. I also found out that i owe the irs. Who will garnish my tax refund first this year, the us department of education, or the irs? =======>> your federal student loans are in default, the Department of Education can refer your account to the Department of Treasury , I mena the IRS,for collection by an offset of your federal (and in some cases state) tax returns. The Department of Treasury can withhold the entire amount of your refund to satisfy the debt that is owed. If you filed a joint return, the IRS can and will withhold your spouse?s refund, although your spouse may be entitled to all or part of the refund offset.
And can I choose who gets it first?=========>I do not think so; Generally, if you have defaulted student loans that have been assigned to a collections agency, your taxes will likely be withheld by the IRS to pay off a portion of your debt. The law states that the IRS must provide you with a proposed offset, and the opportunity for you to review your loan records. This notice would be sent to you via mail, at the best address that the IRS is able to find for you. If you never receive this letter, it is not grounds for challenging the tax offset, The IRS provides a toll-free number which you can call, go through the automated prompts, and see if you have any offsets pending on your social. Their number is (800)304-3107. |