Dang Recession!

I could not make my student loan rehabilitation payment this month. A representative from the program said it would work with me...I hope so.

Good News

I got a call from the loan rehabilitation company and they told me I would be eligible for pell grants in three months! yea!

Should Have Gotten It In Writing

I was told when I signed up for my student loan rehabilitation program that after my first payment that the offset on my tax return would be lifted. I was also told that I would receive a packet in the mail that outlined the program...I should have called when I didn't receive it but I naively thought it had just been delayed. When I finally did call after my first payment I was made aware that the offset would be removed after nine months of being on the program.Getting my refund at all is good news and worth being on the program, and the program has other good benefits as well, but if you decide to sign up for a program get everything in writing before you make any payments.

Show Me The Money

My first payment was made for the rehabilitation loan program I entered into. I will wait a day or two and then start checking to see when the offset is taken off of my IRS account

Have You Ever Seen a Grown Woman Cry?

I can't say it was a total surprise; I knew I had defaulted on my student loan but when I called and found out my income tax refund would be offset it really hurt my feelings. Income tax refunds can be offset to repay federal debts such as student loans, child support etc. The number you can call to find out if your income tax refund will be offset is 1- 800–304–3107. After finding out my income tax refund was scheduled to be offset I used wisdom and did not file right away in order to find a way to still get my refund. I entered into a student loan rehabilitation program it was $400.00 down and $314 a month and after my first payment they said they would remove the offset from my IRS account. I know that $400 down and $314 is steep but it sure beats the alternative (no income tax and the holder of the loan can have payments deducted from your pay check). I had about two weeks to come up with the down payment and then another month before my first payment. After six months I will be eligible to receive financial aid and I can defer my loan if needed. My income tax is more than enough to pay for six months of payments so it was well worth it to me. I have wanted to return to school for my masters along time now too.

Innocent Spouse Relief

Innocent Spouse Relief

By requesting innocent spouse relief, you can be relieved of responsibility for paying tax, interest, and penalties if your spouse (or former spouse) improperly reported items or omitted items on your tax return. Generally, the tax, interest, and penalties that qualify for relief can only be collected from your spouse (or former spouse). However, you are jointly and individually responsible for any tax, interest, and penalties that do not qualify for relief. The IRS can collect these amounts from either you or your spouse (or former spouse).

The IRS will figure the tax you are responsible for after you file Form 8857. You are not required to figure this amount. But if you wish, you can figure it yourself. See How To Allocate the Understatement of Tax, within the Publication 971.

You must meet all of the following conditions to qualify for innocent spouse relief.

1. You filed a joint return which has an understatement of tax due to erroneous items (defined below) of your spouse (or former spouse).

2. You establish that at the time you signed the joint return you did not know, and had no reason to know, that there was an understatement of tax (See Actual Knowledge or Reason To Know, defined below).

3. Taking into account all the facts and circumstances, it would be unfair to hold you liable for the understatement of tax. (See Indications of Unfairness for Innocent Spouse Relief, later).

4. A request for innocent spouse relief will not be granted if the IRS proves that you and your spouse (or former spouse) transferred property to one another as part of a fraudulent scheme. A fraudulent scheme includes a scheme to defraud the IRS or another third party, such as a creditor, ex-spouse, or business partner.

Injured Spouse Relief

Innocent Spouse Tax Relief Eligibility Explorer

Equitable Relief


All the facts and circumstances are considered in determining whether it's inequitable to hold you liable. Some of the factors considered include:

The taxes owed are your spouse's or ex-spouse's.
You are no longer married to that spouse.
You thought your spouse would pay the taxes on the original return.
You didn't know about the items changed in the audit.
You would suffer a financial hardship if you were required to pay the tax. You would not be able to pay for basic living expenses like food, shelter, and clothing.
You did not significantly benefit (above normal support) from the unpaid taxes.
You suffered abuse during your marriage.


If you meet the requirements contact IRS to talk with a representative or go to the website and print out the form/