Please keep your related questions in one thread. Do not post separate questions about the same issue. It's too confusing and hard to follow, and hard to see the whole picture, if information is scattered in multiple threads. If you want to add more information or post a follow-up question, add a reply to your original question.
Your tax return is the form you send to the government that shows your income and calculates your tax. The money the government sends back to you is your refund.
Your various types of income - W-2, 1099, unemployment, etc. - and your child tax credit are not treated separately. You don't get a refund for your W-2, and a separate refund for your children. All your income is added together on your tax return, and the tax is calculated on your total income, minus deductions. Your refund is based on your total tax, minus credits and whatever tax was withheld from your pay.
Any income that is paid to you has to be reported as income on your tax return, whether or not you actually received it. If your W-2 wages were garnisheed, or your unemployment benefits were applied to your student loan, it's still income to you. It's the same as if you received the money and wrote a check for loan payments. It's your income, and you used it to pay down your student loan. You just didn't have any choice about what you used the income for.
Part of what you paid towards your student loan was interest. You might qualify for the student loan interest deduction. The lender should have sent you a Form 1098-E at the end of the year showing how much interest you paid. Enter it in TurboTax, and TurboTax will figure out whether you qualify for the deduction. That will increase your refund. But the refund will still be offset to pay your past-due loan payments until you get up-to-date.
If you are having trouble figuring this all out, see if there is a local community organization that helps low-income people with tax problems, or see if there is a Low Income Taxpayer Clinic near you. If you can't find a local organization or LITC, maybe a friend or relative who is knowledgeable about taxes can help you.
