Hi All,
Post title says it all, I am looking for advice on filing 2018 tax returns "married filing jointly" vrs. separately. I have already done some research on the pros and cons, but advice I keep seeing says "...and if you have income driven repayment plans on student loans that will change your decision". Well folks, I got married last September to the love of my life and she just so happens to have student loans on an income driven repayment plan.
I am looking for advice on whether we should file jointly or separately based on the following factors:
Income:
I make $82.5k per year (salary).
She makes about $75k per year (salary).
Benefits:
I contribute $5k annually (pre-tax dollars) into my company's 401k plan (a part of an employer match program).
She contributes about $1.2k annually (post tax dollars) into an IRA account she set up.
Expenses:
I have student loans on a level payment plan, $15k balance with a $400 monthly payment.
She has student loans on an income driven payment plan, $100k+ law school debt with a $320 monthly payment.
Housing:
We rent and live in Seattle, WA.
If you were in my situation, what is the most advantageous tax filing status going forward with my wife's income driven repayment plan in mind? I am assuming her loan payment could double because of me?
Thank you.
EDIT: Thank you for the responses so far. To answer one of the main questions, yes my wife is going for a PSLF. She works at a qualifying non-profit.
Submitted November 06, 2018 at 04:08PM by CPtheCoug https://ift.tt/2qvCXkb
