Victoria, can you help me with this?
My daughter is a public-school teacher (18-years) with 2 young children and she’s married. Her husband has a student loan. Her husband is also totally disabled and pending an SSA disability, but they have a physician and medical specialist who states that her husband can no longer work.
He suffers from Grand Mal Seizures and his medication does not prevent the seizures. He is also Type I diabetic. After each seizure, the law prevents him from driving for 6-months in their state and 1-year in the adjoining state. In addition to the absenteeism from work, the days when he has a seizure and must leave work, and his inability to drive to work (by law), he is not employable.
Her husband is in default on his student loan (federal loan). Her husband had no income for the past 2 years.
They filed their tax returns a few weeks ago, but they did not realize that the student loan was in collection. The IRS took the entire income tax return (approx. $9,200).
What are her options to get some of this money returned to her (this was all collected from her pay)? Should she file an amended return, Head of Household, and list him as a dependent only? She realizes that this would only give her a standard deduction of $17,500, which would cause her to lose money in the refund.
Does she have any other options? She used TurboTax software for her initial federal and Georgia returns.
