I am switching to PAYE and trying to come out of forbearance for PSLF but my payments ballooned due to last year's capital gains (a one time thing). I also took a significant paycut after switching jobs so my new income is significantly lower than my "current AGI" appears to be. Can Mohela or anyone readjust my payments if I provide proof of current income?
Capital gains increasing payments when switching to PAYE
byu/justaway3 inStudentLoans
Posted by justaway3
2 Comments
Yes. When you recertify your income, you’ll first link your tax return through the IRS system but then will be given an option to say that your income is lower than what’s shown on the tax return. Selecting that option will then give you instructions for submitting alternative documentation of your income (e.g. recent pay stubs from your job).
Yes, if your tax return no longer accurately reflects your income you can opt for the “alternative documentation” route, which will be calculated based on the gross income from paystubs instead of your AGI from your taxes.