So, due to a car accident, I defaulted on my school loan payments last year. I was told in late 2019 that they would be taking my tax return. Despite making payment since the first of the year (2020), I believe the hold is still on my return. I read the latest about the government not taking tax returns and assumed I would be getting my return. I am also reading that if the hold on the return was before March 14th/13th, that we would still be getting garnished and only holds after this date would be removed. Has anyone seen anything on this or had their return taken still? I went ahead and filed (instead of waiting for enough payments made to pull me out of default) and it says that IRS approved the return, but "however, it may be partially or completely reduced to pay a past due obligation..." And I hosed this year?
You're correct - tax offsets (as they're called) - are paused for student loans. Read more about the specifics here: Student Loan COVID-19 Programs (https://thecollegeinvestor.com/33288/quarantine-lockdown-student-loans/).
We have seen some readers who saw the returns garnished, but then get a refund check for it.