I have a defaulted student loan. I was told i am loosing my tax return this year, but do not want my wife and daughter to lose theirs. Any options?

 
MinhT
Expert Alumni

Education

If you have a defaulted student loan and risk having your tax refund garnered by the IRS, and you are filing a joint tax return with your wife, you can file form 8379 - Injured spouse to avoid your wife's share of the refund taken by the IRS.

To file Form 8379 - Injured Spouse, please read this TurboTax FAQ:

https://ttlc.intuit.com/replies/3326788

Per IRS: "You may be an injured spouse if you file a joint tax return and all or part of your portion of the overpayment was, or is expected to be, applied (offset) to your spouse's legally enforceable past-due federal tax, state income tax, state unemployment compensation debts, child or spousal support, or a federal nontax debt, such as a student loan."


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Education

Does this work for my daughter as well? She is 16/17 and got here first w2. is it better for her to start filing on her own or can she still file with us w/o her losing her return as well?
MinhT
Expert Alumni

Education

You can still claim your daughter as a dependent if she did not provide more than half of her own support.

You do not report your daughter's W-2 on your joint return. She should file her own tax return to claim her own refund and she will not be affected by your student loan default. She must indicate on her own tax return that she is claimed as a dependent by another tax payer.
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Education

Thank you very much sir. This was extremely helpful.
MinhT
Expert Alumni

Education

You're welcome.
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