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What is the name of your state? OH
I owe about $16,000 on loans still.
They were in default and a garnishment began, with my knowledge.
When I changed jobs, I called to inform them so garnishment would continue.
In speaking with the operator, he suggested a loan "rejuvenation". Instead of garnishment a set amount is taken from my account directly.
Great! $195 a month and out of default.
When I spoke to the man, I specifically asked about my tax return.
He said it would not be taken.
A few months passed and nothing was taken from my account. I called again, they have the records of calls and what was discussed.
They had not received my confirmation of the direct withdraw.
I resent the form by fax.
So, in all, last year approx. $1400.00 was paid to my loans.
SHOCKED, they took my tax return!
$3,325.00!
ALL OF IT!
Is this allowed???
I will of course continue with the $195.00 a month direct.
That means I owe $2340/yr.
I paid approx. $1400 last year leaving $940 not paid.
How can they take $3,325?
I am now considered out of default.
I am guessing this is a battle I can never win, but does anyone know if there's a chance?
This year alone in all they will be getting $5665 between my return and direct payments.
That's insane!:mad:
 


No, not insane. If you had been paying all along, this would not have happened.
No **** Dick Tracey.
Sorry, I am far from perfect and many times my bills get behind.
If I would have continued with the garnishments as I had first requested, this would not have happened. I received my return last year.
I chose the suggested route and lost my return.
Plus, maybe if my Ex tried paying his support, I wouldn't have to use monthly amounts set aside for household bills to pay his portions of preschool, insurance, etc...
I am not the type who is trying to dodge the loans obviously.
I am confused as to why they can take an amount well above what is owed for that year and why I was told this program would get me out of default and I would receive my return.
 

moburkes

Senior Member
I didn't ask for your life story. We all have them. You stated that this was insane. I commented that they wouldn't have done that if it was paid. The. End. Of. The.Story.
 
I didn't ask for your life story. We all have them. You stated that this was insane. I commented that they wouldn't have done that if it was paid. The. End. Of. The.Story.
It was partially paid.
The amount owed for last year would be $940.
They took $3325.
Are they permitted to take $2385 on top of that if direct payments are also set and current?
I can see them taking $940.
I wouldn't be here asking if that was what was taken.
I am not in default at this time, and am current on my payments.
Is there a possibility my loan status only changed at the 1st of the year?
Although the simple answer seems the obvious, it does not answer why they can take above and beyond and why my status appears that it should not have been taken.
I am looking to elaborate on your response because it is paid and is current.
 

LdiJ

Senior Member
It was partially paid.
The amount owed for last year would be $940.
They took $3325.
Are they permitted to take $2385 on top of that if direct payments are also set and current?
I can see them taking $940.
I wouldn't be here asking if that was what was taken.
I am not in default at this time, and am current on my payments.
Is there a possibility my loan status only changed at the 1st of the year?
Although the simple answer seems the obvious, it does not answer why they can take above and beyond and why my status appears that it should not have been taken.
I am looking to elaborate on your response because it is paid and is current.
Obviously you are still considered to be in default or they would not have done that. You need to confirm your status as being out of default. Otherwise, they are going to continue to take your refunds until the balance is paid in full.
 

efflandt

Senior Member
Why don't you adjust your W-4 form (see www.irs.gov) so the proper amount of tax is taken out throughout the year (making each paycheck a little bigger), so you do not have such a big refund to snatch? Even better is if you end up owing a little. Just make sure that you would owe less than $1000 when filing to avoid underwithholding penalty.

One more W-4 exemption would lop $3400 off of withholding, leaving you owing $75 at tax time (assuming nothing changed drastically). Your employer may have assumed one (1) exemption if you never filled out a W-4, but a single person with one job can typically take two (2) W-4 exemptions.
 
Why don't you adjust your W-4 form (see www.irs.gov) so the proper amount of tax is taken out throughout the year (making each paycheck a little bigger), so you do not have such a big refund to snatch? Even better is if you end up owing a little. Just make sure that you would owe less than $1000 when filing to avoid underwithholding penalty.

One more W-4 exemption would lop $3400 off of withholding, leaving you owing $75 at tax time (assuming nothing changed drastically). Your employer may have assumed one (1) exemption if you never filled out a W-4, but a single person with one job can typically take two (2) W-4 exemptions.
I am head of household, 2 dependants, 2 jobs at times, one is seasonal, with EIC, and dependant care expenses, child tax credit. I don't ever plan to have this issue again with the direct withdraw set up now, hopefully. I will look into your suggestion though. I do like that return though. It seems like nothing spread out in less taxes, but once a year all at once, it's like I hit the lotto.
Thank You.
 

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