From Peggy:I was looking forward to my tax refund as it will help with bills and much needed things for the baby. It was accepted and ... now after digging around I found out they are sending it to the U.S. Dept. of Ed. for my student loans which I thought were in deferment. ...
I get a lot of questions about whether you'll pay taxes on student loan forgiveness. The questions come in many forms: Will I owe taxes on the amount of my student loan debt forgiven? What will my student loan forgiveness tax burden be? Is the debt forgiven tax free for student loan ...
For example, suppose you accidentally paid your credit card company $500 when your bill was only $50. When you get that $450 put back in your checking account, there isn’t any tax liability. A refund on an overpayment of a student loan is the same thing. Sherpa Clarification:The title...
When you use student loan funds to finance your education, if you are eligible, the IRS allows you to claim qualifying expenses that you pay with those funds towards educational tax credits. A tax deduction is also available for the interest payments you
after 25 years (but may have to be claimed on your tax return). Although you will pay more over time compared to the standard repayment plan, this option is great for parents refinancing PLUS loans into a Direct Consolidation Loan, or those looking to erase debt from student loan ...
Discusses changes to the Stafford student loan, formerly called the Guaranteed Student Loan. Under the Higher Education Reauthorization Act of 1992, banks are required to rebate the difference between the interest you pay and the prevailing rate. Mostly applied to the principal, shortening the term ...
itemize to get this deduction. Deductions reduce yourtaxable incomefor the year, which may lower your tax bill or add to the size of your refund. If you paid $600 or more in student loan interest for the year, you’d receive Form 1098-E from your loan servicer to use for tax filing...
to help you figure out if you’re eligible. Even if you think that you might not qualify for the deduction, it’s worth checking. The student loan interest deduction could potentially save you hundreds of dollars on your tax obligation by lowering your tax bill or boosting your tax refund....
Payments made via wage garnishment, which is when an employer is required to withhold some of your wages and send them as direct payments to the loan holder, or by Treasury offset –which is when the government seizes part or all of your federal income tax refund – ...
But if you default on your student loans, you’re looking at wage garnishments, you’re looking at your tax refund taken. If you threw all these out to retirement, social security, disability payments can get garnished. If you default on a private loan, they can sue you. Depending on ...