We got married and we are trying to figure out our finances, taxes and how the student loans fit into this.
First: should we do our taxes: married filed separately or married filed jointly?
I know we get higher deductions for married filed jointly but it is worth it?
Income person A: 50k Income person B: 120k
Other considerations:
Student loans
Person B has 130k of graduate school direct loans. Person B is currently working for a company that qualifies for (PSLF) public service loan forgiveness (6 months into this job). Should we take the risk and do income-based student loan payments, work for a qualifying company or companies for the next 9.5 years and get the rest forgiven?
If we do our taxes married filed jointly then the income based repayment amount will go up, much closer to the standard repayment but we lose that additional deduction
Considerations: Standard 10 year repayment: approx. $1,500/month Income Base Repayment (IBR) at 120k: approx.. 850/month (PSLF amount ~62K) Income Based Repayment (IBR) at 100k: approx. $650/month (PSLF amount ~105k)
Other potential factors: Person B will be dropping work contract in 1 year to stay at home with children (aka 120k to 100k) but this is still considered “full time” to qualify for PSLF
Person B has the mortgage in their name (interest for taxes)
Both Person A and B have separate health insurance and retirement plans through work
Looking for professional financial recommendations!
Submitted May 30, 2017 at 07:08PM by SLS8 http://ift.tt/2r9eCSH
