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.