The Student Loan Debt Forum | The College Investor

Student Loans => Navigating Repayment => Topic started by: flame109 on January 25, 2020, 10:34:33 am

Title: Need to file 2019 tax return before applying for PAYE payment plan?
Post by: flame109 on January 25, 2020, 10:34:33 am
Here's our details:

• Wife's loan is $154,000 (currently on PSLF plan and has about 5 years left) and she's currently on
REPAYE
• I don't have any loans
• No kids

We got married in September 2019 and haven't yet filed our 2019 taxes.  It seems like we'd be better off switching to PAYE if we qualify but we're not sure if our joint income or only my wife's income is considered when applying to change to PAYE.  Do we need to file our taxes for 2019 first before we apply?  If so, would we need to file separately? 

I know our tax return will likely be better if we file jointly, but the main priority is making sure we qualify for PAYE when we apply.

Thank you!
Title: Re: Need to file 2019 tax return before applying for PAYE payment plan?
Post by: TheCollegeInvestor on January 26, 2020, 03:53:04 pm
You need to do some math. Check this article: Math Behind Married Filing Separately for PAYE (https://thecollegeinvestor.com/17807/the-math-behind-married-filing-separately-for-ibr-or-paye/). It might save on loans, but in many cases the higher taxes don't always make it worthwhile.