Can the Government keep your income tax check because aschool loan wasnot paid.?

Question

Can the Government keep your income tax check because aschool loan wasnot paid.?

Answer 1

If the loan is in default and you are not on a payment plan they most certainly can.  Students loans are one of the reasons that the irs was witholding peoples stimulus checks this year.

Answer 2

Any state or federal government agency can put a claim on your refund check especially if you are not making regular payments. You will receive a letter if this happens. Call Financial Management Services (FMS) before 8 a.m. to see if there is an offset claim on yours.

Answer 3

Yes, if your school loan in in default status, your refund can and will be taken and applied to what you owe.

Answer 4

Yes. According to the IRS:

Q. I'm eligible for a payment but I still owe federal income tax from a prior year. Will my payment be reduced?

A. Yes. For this purpose, the stimulus payment is treated like any other tax refund. This means that part or all of your payment can be used to pay past-due federal or state income taxes or non-tax federal debt such as student loans and child support. If this occurs, you will receive a letter explaining how the stimulus payment was applied.