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New Member
posted Feb 23, 2025 4:13:53 PM

Can my return be directly applied to a college debt I owe instead of hitting my account first?

I owe money ey to a college I went to in 2012 and last year part of my return was automatically applied to that debt. Is there a way to make my entire return this year apply directly to that debt without hitting my bank account first? I also started recieving SSA disability last year, as well as a small amount of income from a part-time job that sent me a W2, but the SSA never sent me a 1099 form. The return I recieved last year penalized my monthly payment from the SSA -they have deducted $98 every month for earning income (what remained of my tax return from last year hit my account and counted as income). Do I need to contact the SSA for my 1099 form, not file at all, file and have my funds routed to the college debt I owe, or file as-is and get the refund but also get funds taken from my SSA monthly payments like I have been but for an extended period of time?

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Expert Alumni
Feb 23, 2025 5:37:45 PM

If you have defaulted on a federal student loan, the government can take your tax refund to help cover what you owe. You can use this link to determine if you will have your refund reduced by your college debt, click here. 

 

If you have not received a Form SSA-1099 for your Social Security disability benefits from the Social Security Administration, you should contact them for a copy.  If you have an online account for Social Security you will be able to get a copy of your Form SSA-1099 from your online account.  You can access that account by clicking here.

 

TurboTax will automatically calculate what portion, if any, of your Social Security benefits are taxable.

 

You must enter both your W-2 and your Form SSA-1099 in TurboTax.


You can enter your Form 1099-SSA in Turbo Tax as follows:

  1. Click on "Search" at the top right of your screen
  2. Type "SSA-1099" in the Search Box
  3. Click on "Jump to SSA-1099"
  4. On the screen "Did you receive Social Security or Railroad Retirement Benefits in 2024?"
  5. Select "Yes"
  6. Enter your Form SSA-1099 information on the following screen
  7. Answer all follow-up questions

If you are using TurboTax Online/Mobile you can enter your Form W-2 as follows:

  1. Open your return.
  2. Go to  W-2, 
  3. Select "Work on my W-2" 
  4. Select" Continue"
  5. Follow the screens to enter your Form W-2 information.

 

If you are using TurboTax Desktop, you can enter your Form W-2 as follows::

  1. Open your return
  2. In the Search bar, enter "W-2" and select the "Jump to W-2" link. This will take you to your W-2 entries 
  3. Your screen will say "We'll Start with your W-2" 
  4. Select "Work on my W-2"
  5. Select "Continue"
  6. Follow the screens to enter your Form W-2 information.

 

The Social Security Administration (SSA) receives information about your earnings from your W-2 and tax returns. 

 

They use this information to determine if your earnings may affect your Social Security benefits. If they determine that your income was too high, they will inform you if your Social Security benefits will be reduced further.

 

If you are receiving Social Security benefits, you should let the SSA know if your earnings will be different than what you originally told them. You can call 1-800-772-1213 (TTY 1-800-325-0778) or contact your local Social Security office. 

 

 

Click here for "Is Social Security Disability Income Taxable?"

 

Click here for "A Guide to Social Security Tax.