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lauraviars
New Member

Do you receive a 1098-T when wages are garnished?

Hi! My husband currently has his wages garnished by Pioneer Credit Recovery for a student loan. Do you receive a 1098-T for interest paid when wages are being garnished? We are not expecting a refund this year, but I wasn't sure if I should wait on that form before filing, or if they would even send one out in the first place? Thanks in advance!

2 Replies
DoninGA
Level 15

Do you receive a 1098-T when wages are garnished?

The student loan interest paid is reported on an IRS Form 1098-E.  If any amounts were paid on the loan then there should also be interest paid.  You should be receiving the 1098-E.

The student loan interest paid is entered on a tax return as an Adjustment to Income which reduces your Adjusted Gross Income thereby reducing your taxable income after deductions, lowering your tax liability.

Carl
Level 15

Do you receive a 1098-T when wages are garnished?

There is also the high probability that the loan is no longer a "qualified" loan, since it's apparent the debt was turned over to a collection agency.  If so, then you will not be receiving a 1098-E and absolutely nothing concerning the loan is deductible on any tax return.

 

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