Student loan in default re: taxes

[jenners26]

I have a student loan through Sallie Mae that I defaulted on over the summer (no flaming please...it's been a rough year). We're finally beginning to pull out of this financial mess, and earlier in the month, I contacted the company and arranged monthly payments.

So, my question is about how/if this will affect our tax return. I know when it was n default, they could confiscate our tax return. Now that I have payments set up, is that still possible? Or will we actually get our tax return?

TIA!

[MangoMommy]

I honestly don't know. Is it still in default?

[Skywise]

If the loan is still in default they will take the tax return even if you are in rehab.

You should file injured spouse after they take your return so that you will get some of your taxes back.

[RoadWorkAhead]

A friend went through this...She had to make payments for a set amount of time to get out of default status and then they stopped taking returns. You could technically wait to file a return until you are out of default but I wouldn't recommend it since well, its going to your debt either way.