Celebrating 10 years! 2007-2017

Tax question for ibr

I got married last year. We ran our taxes both ways and we orange902/04/17
I believe if you file jointly then both of your incomes are spunk202/04/17
Both incomes are calculate together. Then, if the spouse ha sjlawyer02/04/17
If filing jointly works out for you, you might as well enrol trollfeeder02/04/17
orange9 (Feb 4, 2017 - 8:19 am)

I got married last year. We ran our taxes both ways and we pay $1400 more if we file separately. Not sure how it would affect ibr payments yet though if we file jointly vs separately. Is there a way to find out? Any suggestions?

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spunk2 (Feb 4, 2017 - 9:15 am)

I believe if you file jointly then both of your incomes are used to calculate your IBR payment. If you file separately then IBR only uses your income. Filing separately should give you a lower IBR payment. You should compare the tax benefit of filing jointly versus your monthly IBR payment.

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sjlawyer (Feb 4, 2017 - 9:32 am)

Both incomes are calculate together. Then, if the spouse has loans, then I think the percentage is split proportionally. If you're the only loan holder, you're going to get hit hard on IBR.

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trollfeeder (Feb 4, 2017 - 9:53 am)

If filing jointly works out for you, you might as well enroll in REPAYE. It will lower the amount of your AGI used towards payment, and relies on overall joint income anyway.

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