If you have an oustanding student loan is your tax refunded automatically kept by the IRS?
Only if the loan is in default status and it has been reported to FMS for collection. It generally takes 9 months of no payments for a student loan to go into default. If it’s government backed or insured, the reporting to FMS is pretty much automatic at that point.
You can call 1-800-304-3107 to see if your refund has been flagged for capture to offset a student loan in default, back taxes, or unpaid child support.
