My wages are being garnished due to a student loan. What do I do with that on my taxes this year?
02566
2 Replies
DoninGA
Level 15
Jun 4, 2019 11:24:51 PM
Garnishment of wages for an unpaid debt is not reported on a tax return. You report your income as received regardless of how that income was used.
Critter
Level 15
Jun 4, 2019 11:24:53 PM
If the payments covered interest payments then you can deduct up to $2500 on your return ... you should get a 1098-E in January. And expect any federal or state refunds to be grabbed to satisfy the debt as well.