Now that my defaulted student loan has been consolidated and I am making payments can I now get income tax?

You have to go through the rehabilitation program offered by the government to basically reset defaulted student loans. Once you have made 6 regular, timely monthly payments, your status as defaulted will be removed, and will stay away as long as you continue to make your payments in a timely manner. If you have a tax lien offset, you will get a letter in late November stating there is an offset and the amount due, along with information to contact the liening agency. If you recieve this leter, contact the agency listed and discuss options, or dispute their information, whichever is necessary.

If you are asking if you will now be able to receive your tax refunds, the answer is probably, as long as you make payments on your consolidation loan. But you cannot go back and get the refunds from previous tax years, including 2006, those monies have already been used to pay down what you owe. Don’t default again though, because you cannot consolidate a consolidation loan and lenders are likely to decline to make you further loans.