Withdrew - how do I get the $ I paid in taxes back?

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math_PhD
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Withdrew - how do I get the $ I paid in taxes back?

Post by math_PhD »

I withdrew from the SMART program in 2014. Last year, in 2018, I finally heard from DFAS on the terms of debt collection. I owed a pretty penny and I paid all of it back last year, in one lump sum.

Over the course of my two years in the program (2012-2014), I paid over $10K in taxes on my stipend and internship support payments. This is money I paid on income that I didn't receive, as I ended up paying all of it back to the fed last year. I believe this should have been deducted from my taxes this year, but DFAS doesn't have a form 705 stating that my debt was taxable. This is clearly wrong but wondering if it's worth fighting and bringing a lawyer into it.

Has anyone else run into this issue?

anonymousguy
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Re: Withdrew - how do I get the $ I paid in taxes back?

Post by anonymousguy »

Interesting question. I would contact an accountant. SMART really gives no help when it comes to taxes.

SMARTgirl
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Re: Withdrew - how do I get the $ I paid in taxes back?

Post by SMARTgirl »

Any update on this? I'm curious as well. I thought they would've deducted the taxes out of the debt repayment, but if they didn't, you should be entitled to that money.

RDEngineer
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Re: Withdrew - how do I get the $ I paid in taxes back?

Post by RDEngineer »

The closest thing to what you are looking for is IRC 1341.

Keep your documentation, including payment receipts, breakdown of debt, etc. The chance of being audited increases filing a 1341 claim of right credit.

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