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Unemployment Tax Refunds May Be Seized for Unpaid Debt and Taxes
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Unemployment Tax Refunds May Be Seized for Unpaid Debt and Taxes
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IRS starts sending refunds to those who overpaid taxes on unemployment benefits By Irina Ivanova Millions of tax refunds delayed
Americans who overpaid taxes on unemployment benefits this year will start to receive refunds this week, the Internal Revenue Service announced Friday.
Under the American Rescue Plan, workers who received $10,200 or less in unemployment benefits last year don t have to pay taxes on that money, as they normally would. However, Congress passed the law change in March, after millions of people had already filed their tax returns. As many as 10 million people potentially overpaid their taxes and could be in line for refunds, the IRS said Friday.
Can my tax refund be garnished for late student loan payments?
By Christy Bieber article
Income tax refunds normally can be garnished for unpaid federal student loan debt. But this year, the rules are different. (iStock)
The coronavirus pandemic has left many individuals unable to repay their federal student loans. Fortunately, the federal government temporarily shielded loan borrowers from the consequences of unpaid debt. The Biden Administration has taken steps to help student loan borrowers include setting interest to 0%, pausing loan payments, and stopping collection activity including the seizure of tax refunds.
While these reforms to student loans have provided a temporary reprieve, they apply only to federal student loans. And if you re struggling with them, it s a good idea to plan ahead and look for a long-term repayment plan solution for when monthly payments resume.
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