Will the IRS or state take your tax refund due to delinquent student loans?

Yes the state can take back your refund under the circumstance of your student loans defaulting particularly because it will be one source of repaying your loans. The IRS doesn't take your refund, but instead forwards it to the department in a way to satisfy the debt you owe. For instance, the Department of Education has the ability to transfer your federal/state tax refund to the Department of Treasury in order to pay off as much of your debt as possible. They do this because they'd rather settle debt quickly rather than give out tax refunds to people who normally default on their loans.

Find Accountants in Orange County

Veronica Brito
4711 E, Parkrose Cir.
Anaheim, CA 92807
Roy E Molina Cpa Inc
18818 Teller Ave Ste 130
Irvine, CA 92612
Alexander Schurawel CPA
2030 Main St., Ste 1040
Irvine, CA 92614
Forrest & Co
30021 Tomas St Ste 300
Rancho Santa Margarita, CA 92688
Lina Beydoun
2810 Warner Ave
Irvine, CA 92606
Rusell Financial & Tax
10061 Talbert Ave Ste 200
FOUNTAIN VALLEY, CA 92708