So my plan is to stay on SAVE as long as humanly possible — until they tear it away from me. On FedAid.gov my next recertification isn't until 3/2027. I've always filed my taxes married filing separate due to the income difference between my husband and I and the impact it would have on repayment in IDR. But for those of you in the same boat how are you filing your 2025 taxes? Do we think 3/2027 is just a placeholder and I'll get screwed filing jointly? Or do I file jointly and plan to file separately again for 2026?
Taxes while stuck on SAVE
byu/bohemianrhapsodys inStudentLoans
Posted by bohemianrhapsodys
5 Comments
It’s a placeholder. It can change at any time.
We literally cannot answers this for you.
It’s a placeholder. We don’t know what the transition out of SAVE looks like yet. I’d be cautious and assume you will have to move “soon” and provide income documentation much earlier than a year from now.
I filed separately because of people getting moved off of SAVE and getting ratfucked. This means that my tax bill will be higher this year (to the tune of 1.8k), but that I will save $3,800 on my student loans.
Worth it. What if you file married this year and they make the deadline June? Then you’d be stuck with a married filing and the much, much higher IDR.
Just pull the splinter out now.
I decided to file jointly. The current recertification dates are just placeholders, but I decided to gamble on the gov’t not managing to do anything even reasonably quickly. If they somehow force the move soon, then my payments will be much higher, but the difference in tax savings was also significant. I believe that even if they moved everyone as quickly as possible and demanded that people provide recertification information on an unreasonable short timeline, it would still take them quite a bit of time to get everything processed at which point I will file taxes as early as possible next year.
I would treat it as though SAVE will be over this year and I will be required to recertify as part of my entry into a different program.
Or you could roll the dice… But my reading of the tea leaves is that once RAP starts, we’ll get told that we have to leave SAVE.
Then again, maybe it won’t happen until after midterms… one can only hope…
In any event, nobody here has any sort of inside scoop on what the government is going to do. We’re all just guessing here. What you choose depends on what sort of risk tolerance you have.