Many people are eagerly awaiting their tax refund. However, those who have unpaid student loans risk having their refund garnished by the government; this tactic is becoming more common as the amount of student loan debt grows. Working with a tax attorney like Lance S. Cox Attorney at Law in Cincinnati, OH, is imperative in this case to ensure you make the most of your tax refund.  

A Tax Attorney Explains the Effect of Unpaid Student Loans on Your Refund

While many assume outstanding student loans primarily affect young people, others also have a difficult time getting current on past-due debt. According to the U.S. Government Accountability Office, approximately 6.3 million people age 50–64 have past-due student loans on the books. Additionally, 870,000 people 65 or older also owe money on their student loans, showing just how hard it can be to pay for higher education.

Garnishment Is Becoming More Prevalent

As a result of the massive amount of debt associated with student loans, the government is pursuing traditional debt collection tactics like garnishment of tax refunds. The government also can seek other types of income, including Social Security payments — $171 million in Social Security wages have been collected to cover unpaid student loans. If you are facing garnishment, it’s critical that you speak with a tax attorney about handling the situation.

When Your Refund Can’t Be Garnished

There are instances when your tax return can’t be garnished. If you are eligible for a discharge because of undue financial hardship, the government cannot garnish your refund. However, it can be difficult to meet the qualifications for this deferment, and many people find their income tax refunds in jeopardy.

For help with everything from tax preparation to estate planning, rely on Lance S. Cox Attorney at Law in Cincinnati, OH. He uses more than three decades of legal experience to meet his client’s needs. To schedule a consultation with a tax attorney, call (513) 528-6000 or use the online contact form. Visit the law office’s website for more information about their services.