I don’t agree on my federal I have finished adding my income

[xmasbaby0]

What do you not agree with?

[jrcmkc]

My 1040 does not agree with the 1099 regarding tax exempt interest.

The 1099 states that there was $15,094 tax exempt interest. However, line 2a shows only $11,379

[VictoriaD75]

You will need to review your entries for tax-exempt interest, even if it was imported directly from the financial institution.

• Under Wages & Income, expand the menu for Interest & Dividends
• Click Start/Revisit next to Interest on 1099-INT
• Click Edit next to each entry. 
• Review the tax-exempt interest reported in box 8

[ddgala]

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.

[DMarkM1]

As far as tax filings your daughter could file an Injured Spouse Form 8379.  Sign back in to TurboTax and click "Add a State" to allow you back in to the return.  Go to the "Other Tax Situations" tab at the top of the page.  Scroll down to "Other Tax forms" and "Show More".  You should find the Injured Spouse interview in there.  Complete that interview and then print it and mail it in. 

Once the offset has happened it is very difficult but not impossible to get it back.  Here is an article, and you can search for more in the same vein, that gives helpful steps to requesting a reversal of the offset. In this article you will find phone numbers to, first, find out where the offset went and then phone numbers for resolution specialists in the Government Agency (Dept of Education for example). 

Additionally, there are firms and legal agencies that deal with this situation regularly.