Do I get my tax refund or will it go to my student loan?
March 24th, 2015 by Questions
I am on a second proposal which was started in Dec of 2014. Prior to that I was on a proposal from Sept 2010. Both proposals included my student loan however it survived the first one, but will not survive the second as I have been out of school for more then 7 years.
I have filed all my backtaxes and am up to date on my current ones. The amount of what they owe me is much larger then the couple hundred I was to pay them a couple years ago. Do I get my tax refund once the final assessment has been completed or does my student loan get to take it? I noticed that my CRA account does not show the outstanding debt to student loan centre anymore….
Posted from: Ontario
One Response to “Do I get my tax refund or will it go to my student loan?”
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March 24, 2015 at 8:50 am, Doug Stuive, CA | Trustee | CIRP said:
The Canada Revenue Agency does have the right to offset the amount owed to them from income tax refunds that are for taxation years prior to your consumer proposal. For this reason it is possible that may see that the CRA may still apply your income tax refunds to the student loan debt. If they do offset the debt you will be entitled to any amount from your refund that is over and above the debt owed to them. These funds will be sent to you directly. While not required it is always a good idea to pay out your consumer proposal early. It ensures the success of your consumer proposal and will help ensure a quicker recovery on your credit bureau report. If you do receive a large refund we recommend you consider applying it to your consumer proposal.