Skip to main content

Can New York state take my federal tax return for student loan repayment?

Middletown, NY |

I have a student loan from 1997 that has defaulted. The last payment on the loan was in 2009 when my state taxes were withheld and used as a payment on the loan. My 2012 federal taxes are now being withheld. I was married in 2012, we filed jointly, and now my husband must file an injured spouse form with the IRS. Our income falls below the poverty level. The amount of money being withheld is eleven percent of our total earning for the year. I do not understand how the state can keep my federal return.

Attorney Answers 3


Use the Office of the New York State Taxpayer Rights Advocate. The form to request their help is at

Mark as helpful


If I am correct, it is the IRS, and not New York State that has taken your federal refund to satisfy a federally guaranteed debt. And yes, they can take your refund to satisfy a defaulted federally guaranteed education loan.

Christopher Larson
Insight Law
Tax Lawyer
Tax Attorney Bellevue
Tax Attorney Everett
Tax Attorney Kent WA
Tax Attorney Redmond
Seattle IRS Office
Offer In Compromise Seattle, WA
Payroll Tax Attorney
IRS Tax Audit Lawyer
IRS Wage Garnishment
IRS Tax Collections
Washington Sales Tax Attorney
Tax Court Attorney

Mark as helpful

1 lawyer agrees


It happens all the time. Under these circumstances, I would recommend that you adjust your tax withholding - you are able to request withholding on a dollar basis rather than the standard # of exemptions. And start talking to the student loan collectors - this debt will never go away & is just racking up more & more interest & fees. Hope this perspective helps!

Mark as helpful

2 lawyers agree

Bankruptcy and debt topics

Recommended articles about Bankruptcy and debt

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics