Avatar

Please consider registering
guest

sp_LogInOut Log In sp_Registration Register sp_MemberList Members

Register | Lost password?
Advanced Search

— Forum Scope —




— Match —





— Forum Options —





Minimum search word length is 3 characters - maximum search word length is 84 characters

sp_Feed Topic RSS student-icon
PSLF/IBR and tax implications
March 10, 2020
4:46 pm
Avatar
Rob
Guest
Guests

Hello, My wife is in year 9 of her PSLF/ IBR. IT is a 10 year plan. My income is significantly higher then hers so we file our taxes separately. As a result we have been missing out on tons of tax benefit in order to keep her monthly payment down. As we approach her last 12-15 payments I am hoping to file next year’s taxes (2020) jointly. In my estimation, by the time the program is able to see the increased combined income she will have already made nearly all of her remaining payments. Perhaps there would be 1-2 remaining payments at a much higher rate but I expect the tax benefit would outweigh these. I just want to make sure there are no hidden penalties for doing this. Id appreciate your insights. Thanks

March 10, 2020
8:15 pm
Avatar
Indiana
Admin
Forum Posts: 349
Member Since:
May 3, 2014
sp_UserOfflineSmall Offline

It sounds like you are considering all of the appropriate variables. I think you just need to run the numbers on both options to see what the math says.

Has your wife been certifying her payments? If not, I’d encourage you to do that to get an updated tally on the countdown to the 120 necessary payments. Any deviation from what you expect could change your plans.

Forum Timezone: America/Indiana/Indianapolis

Most Users Ever Online: 27

Currently Online:
1 Guest(s)

Currently Browsing this Page:
1 Guest(s)

Member Stats:

Guest Posters: 168

Members: 7231

Moderators: 0

Admins: 2

Forum Stats:

Groups: 1

Forums: 5

Topics: 260

Posts: 759