Can a wage garnishment take my tax refund?

It allows federal and state government agencies to collect outstanding debts owed to them by garnishing, or offsetting, your debt with your tax refund. … The TOP is the only way your refund can be garnished; private creditors such as credit card companies don’t have access to your tax refund.

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Thereof, are tax refunds being garnished for student loans in 2021?

There are reasons that taxes can’t always be garnished for defaulted student loans, and we’ll discuss those exceptions more below. In 2021, one reason is that the power to garnish tax returns is paused until September 30, 2021, due to the coronavirus pandemic.

Additionally, how much of your tax refund can be garnished? If debt collectors garnish more than 25% of your income, then you can bring the matter at the local court. Government agencies, including the IRS also can withhold your tax refund without giving attention to percentages, but they still can’t break federal and state law when garnishing your wage.

Also to know is, who garnished my tax refund?

You can call the IRS and see if they are showing a record of the garnishment. If they do not, you will need to contact the You can contact the BFS’s TOP call center at 800-304-3107 to inquire if there is a pending offset for you and who it was.

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