Student Loan FAQs


Will I get my tax refund if my wife owes on student loans and we filed jointly?

My wife and I just got married in 2009. Before we got married, when she filed for her income tax refund the IRS would send the money to her student loans. This year we filed jointly. Can they still take the money, even though I am on the return as well?

Incoming search terms for this question:

Tagged as:  · · · · · ·

Popular Searches

4 Responses to “Will I get my tax refund if my wife owes on student loans and we filed jointly?”

  1. TeamTurboTax says:

    Yes
    To avoid this, you can file an injured spouse claim or file Married Filing Separately

    Here is a link to the injured spouse form
    http://www.irs.gov/pub/irs-pdf/f8379.pdf

  2. tro says:

    you probably want to file the injured spouse form to separate your and your wife’s portions

  3. garyg7 says:

    Yes they can and probably will take the entire overpayment to apply toward her student loans. What you need to do is contact the lender and get back on track with regular monthly payments. You are better off making payments on the loan each month than waiting to make a payment with your tax overpayment once a year.

    Other people will suggest that you file separately or file as an injured spouse. That is only a short-term solution. Because you are married, the two of you need to look at your finances as a couple. Owing money on a student loan is fine. Being behind in payments is bad. It will affect your ability to buy a car and a home. The student loans need to be paid. Don’t ignore them.

    I hope this helps.
    Gary

  4. MisterZero says:

    IF there are no dependents on your return and neither of you are still in school then there will likely not be very many “tax credits” to worry about losing by using the Married Filing Separately filing status. To be sure you need to try working through federal tax returns both ways and see what the dollar differences are – if any.

    Although as a Tax Professional, my basic advice to clients is that the MFS status is usually the worst choice to make…it is the better choice than having to fill out the 8379 form and attach it to a MFJ return if you don’t HAVE to.

    You might want to have your spouse look into the various programs that allow for a “forgiveness” of student loans. AmeriCorps is one such option. I understand that service in the National Guard (or perhaps the Reserves) allows for forgiveness of student loans as well.

    Now…in the early years of your marriage, while you are still a bit more flexible…might be a good time to consider one of those options.

    Here’s a bit of free Tax Planning advice. BUY A HOUSE (or Mobile Home) and get the $8,000- First Time Homebuyers Credit. Use the credit to payoff the student loans. OR…as a weaker second choice, get a 2nd mortgage against your new home for a loan to payoff the student loans and then you could claim the mortgage interest as an Itemized Deduction on your taxes each year (NOTE: this only works IF you have enough Total Itemized Deductions to complete the Schedule A – you should ‘do the math’ before running out to buy a house first).

    G’Luck…

    Mike Womack, Sr. Partner
    Zero Degrees Tax LLP
    Moore, OK

Leave a Comment