So long story short I'm in SAVE, wife has a much higher income than I do, it would make sense financially to file MFJ for 2025 and switch plans last minute (90 days from July 1st as per the new information). I would have 3-4 high payments. Then I would need to file MFS for 2026 ASAP in Jan 2027 and re-certify my income using alternative documentation (I live in a community property state). I will probably need to switch to the RAP plan (only eligible for old IBR and RAP).
Are there any flaws to this? ChatGPT said RAP plan may not allow use of alternative documentation but no idea if this is accurate.
I could just file MFS for 2025 which would be less risky, but would increase our tax burden significantly for 2025.
Timing tax filings and MFS/MFJ with new information
byu/cdmDDS inStudentLoans
Posted by cdmDDS
3 Comments
Okay see I’m in the same boat. And got told I was trying to double dip which I’m not doing nor I think anyone is doing, rude comment and didn’t help my situation at all.
First , my spouse and I already filed this year as MFJ. We didn’t know about the student loan thing until recently and we are not amending our taxes as we have had to do that in the past and it’s ugly and very time consuming. I also live in a community property state as well.
What I plan on doing since we already filed jointly, is to get on the standard extended plan, and then next year when my spouse and I file taxes, we will do MFS and I’ll get on a IDR plan that better suits my income. I cannot afford his income on my plan, that’ll put me over $709 a month and I simply do not have that kind of money.
The alternative documentation thing is tricky – RAP does allow it but the servicers can be pretty inconsistent about accepting it, especially coming from community property states. I’ve seen people get bounced around for months trying to get the right paperwork accepted
Your timing math checks out but keep in mind those 3-4 high payments could really add up depending on your balance, might want to run the numbers on whether the tax savings actually offset that extra payment amount
If you havent filed your 2025 income yet wouldn’t the system just use your 2024 income to switch out of SAVE to a new plan?