I carry student loans and my wife doesn’t. She makes significantly more than I do. Should we file separately so that her income isn’t used to make my payments higher when I am forced off SAVE?
Are you aiming to pay your loans off, get them forgiven (which program?), or something else?
Have you run the numbers both ways to see what your increased tax burden would be from filing separately rather than jointly?
Which repayment plan do you plan to move to? What is the difference in minimum due when your spouse’s income is included?
Throwawaypourtj on
You’ll need to calculate your taxes MFS and MFJ and see how much of a penalty it is versus the higher student loan payments. The more your wife makes and the bigger the difference in income between you two is, the bigger the MFS penalty will be.
diverareyouokay on
Probably, but it ultimately depends on how much you would save filing joint on taxes versus paying in student loans filing separate separately.
Run the numbers each way and see which one leaves you with more money at the end of the day.
3 Comments
Maybe.
Are you aiming to pay your loans off, get them forgiven (which program?), or something else?
Have you run the numbers both ways to see what your increased tax burden would be from filing separately rather than jointly?
Which repayment plan do you plan to move to? What is the difference in minimum due when your spouse’s income is included?
You’ll need to calculate your taxes MFS and MFJ and see how much of a penalty it is versus the higher student loan payments. The more your wife makes and the bigger the difference in income between you two is, the bigger the MFS penalty will be.
Probably, but it ultimately depends on how much you would save filing joint on taxes versus paying in student loans filing separate separately.
Run the numbers each way and see which one leaves you with more money at the end of the day.