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Math Check - Getting Married - Two Docs, REPAYE MFJ vs. PAYE MFS

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  • Math Check - Getting Married - Two Docs, REPAYE MFJ vs. PAYE MFS

    Hi All - Getting married this summer. Been spending the better part of this afternoon trying to figure out the best IDR strategy. We are both on REPAYE currently. Given our debt to income ratios and all this added time at $0 payments counting towards PSLF (thank you COVID forbearance) it makes sense that we both go for PSLF.

    My AGI 2022 this year should be ~$180,000 and hers ~$160,000 (We're both in academics. Our AGIs might be slightly higher as we receive our first attending bonuses but not wildly so). From the math (see below) seems like we should go MFS on our taxes, and I stay on REPAYE and she should go on PAYE. It's also my understanding that given that we are both comparably "higher earners" we get a "tax penalty" for being married so there's really no tax benefit of filing jointly. Does this all check out?

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  • #2
    I’m bumping this because somebody in our clan might want to run through the numbers. If not, I would suggest you get a 2nd opinion from student loan specialist.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Nice work on this calculation.

      Poking holes in a couple of things
      -Your poverty guideline deduction is wrong. It should be $17,420 * 1.5 = 26,130. Resulting in lower monthly payments when updated.
      -Are you in a community property state? This will change your monthly payment and how you certify your income
      -How much is your pre-tax contributions? This will help to reduce your monthly payments in IDR.

      I've written a blog post which goes into depth on your question.

      If you'd like one of our experts to make sure you've got a well oiled plan, check out our site, studentloanadvice.com
      Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

      Comment


      • #4
        Originally posted by Andrew StudentLoanAdvice View Post
        Nice work on this calculation.

        Poking holes in a couple of things
        -Your poverty guideline deduction is wrong. It should be $17,420 * 1.5 = 26,130. Resulting in lower monthly payments when updated.
        -Are you in a community property state? This will change your monthly payment and how you certify your income
        -How much is your pre-tax contributions? This will help to reduce your monthly payments in IDR.

        I've written a blog post which goes into depth on your question.

        If you'd like one of our experts to make sure you've got a well oiled plan, check out our site, studentloanadvice.com
        Thanks Andrew - I walked through your blog post step-by-step to run each of these scenarios, so thank you! I did multiply $17,420*1.5 to get the appropriate discretionary income. I am not in a community property state. And yes, those AGIs are a guestimate, added a little for moonlighting income and bonus pay, minus standard deduction and each of us maxing 403b.

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        • #5
          Oh good point. Well, you've done an excellent job and have a great plan moving forward. Best of luck to you!
          Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

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          • #6
            Originally posted by Daliant View Post
            Hi All - Getting married this summer. Been spending the better part of this afternoon trying to figure out the best IDR strategy. We are both on REPAYE currently. Given our debt to income ratios and all this added time at $0 payments counting towards PSLF (thank you COVID forbearance) it makes sense that we both go for PSLF.

            My AGI 2022 this year should be ~$180,000 and hers ~$160,000 (We're both in academics. Our AGIs might be slightly higher as we receive our first attending bonuses but not wildly so). From the math (see below) seems like we should go MFS on our taxes, and I stay on REPAYE and she should go on PAYE. It's also my understanding that given that we are both comparably "higher earners" we get a "tax penalty" for being married so there's really no tax benefit of filing jointly. Does this all check out?

            Click image for larger version

Name:	Screen Shot 2022-01-14 at 4.53.22 PM.png
Views:	130
Size:	155.2 KB
ID:	313956

            file separately and receive those benefits… then 2 years from now addend this years return and file jointly and recoup the tax money you let the government borrow.

            this is a 100 percent legit and recommended by several of the best student loan advisors.

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