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

Posted: Tue Sep 17, 2019 6:26 pm
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?

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

Posted: Wed Sep 18, 2019 12:18 am
by anonymousguy
Interesting question. I would contact an accountant. SMART really gives no help when it comes to taxes.

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

Posted: Fri Oct 04, 2019 10:39 am
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.

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

Posted: Sun Oct 06, 2019 10:48 pm
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.

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

Posted: Fri Jan 28, 2022 3:38 pm
by Xristos_317
Any update from anyone on this?

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

Posted: Fri Jan 28, 2022 9:11 pm
by human234895
The SMART debtors' Discord is probably the best place to look for an answer: https://discord.gg/MEhgRRC

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

Posted: Thu Feb 03, 2022 9:57 am
by petzold
There appears to be language in the debt establishment notification letters lately (the letter you get from your Component letting you know that they've officially established your debt) that has some information regarding recouping taxes. Looks like DFAS can provide you some form that you or your accountant can use to show you've paid back previous income. It seems like you'd have to ask DFAS for it though. If your debt hasn't been established yet, and DFAS hasn't yet sent you a collection letter, then you may just have to wait a bit.