Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-12-2017, 12:17 AM
Junior Member
 
Join Date: Nov 2017
Posts: 1
Student Loans

My wife co-signed for a couple of my son's student loans. If the the loans are in default and we file taxes jointly can they take the refund even if I didn't co-sign any of the loans? Trying to prepare just in case...



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-12-2017, 04:28 AM
Moderator
 
Join Date: Oct 2010
Posts: 4,835
basically, if you cosign a student loan, you assume joint responsibility for the debt. If your child does not or cannot repay the loan, you will be held 100% responsible for the total amount. Student loans can be thousands of dollars and repayment schedules can last for 10 to 30 years ; as you can see, these loans typically can't be shed in Bankruptcy Court and there is no statute of limitations on how long collectors can pursue this debt. Even your spouse?s Social Security benefits aren't safe: the U.S. Supreme Court upheld the government's ability to offset Social Security disability and retirement benefits when a borrower has defaulted on student loans.Income-based repayment plans can provide some relief with the federal loans. This repayment option limits the required payment to 15% of your son?s/daughter's discretionary income, and his/her balance can be forgiven after 25 years.If your son/daughter has no income, his/her required payment would fall to zero. Unlike deferment and forbearance plans, which have 3-year limits, the income-based repayment allows zero payments indefinitely.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 11-12-2017, 05:03 AM
Moderator
 
Join Date: Oct 2010
Posts: 4,835
When you as a married couple file a joint tax return as mfj, both individuals are equally responsible for all taxes owed if there is a balance due. But there are some cases where you may be innocent of your spouse's tax debts, and the IRS has tax relief available for you.What if your spouse or ex-spouse, on a past joint tax return, lied about their income or underpaid taxes without your knowledge, and now you are being held responsible for someone else's tax debt, In that case, you can apply for Innocent Spouse Relief;



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Student Loans question CuriousIN For 2016 0 01-19-2017 05:45 PM
Employer paying on student loans Alspa14 Income 3 10-25-2015 03:47 AM
Settlement will pay off student loans. Is this taxable? proberts Miscellaneous 3 06-28-2014 02:16 AM
Refi Student Loans + Tax deduction question shortstack00 Itemized Deductions 1 10-18-2013 11:26 AM
8379 in regards to defaulted student loans kellienurse Miscellaneous 1 03-02-2013 04:42 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning