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Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
20141023
Posts: 3072
Joined: Mon Jun 18, 2012 12:17 am

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Postby 20141023 » Sun Apr 21, 2013 10:40 pm

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Last edited by 20141023 on Fri Sep 27, 2013 4:09 pm, edited 1 time in total.

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Tiago Splitter
Posts: 15499
Joined: Tue Jun 28, 2011 1:20 am

Re: Inheritance and Income-Based Payments

Postby Tiago Splitter » Sun Apr 21, 2013 10:49 pm

kappycaft1 wrote:I was wondering if anyone here knows how large inheritances are treated under repayment plans like IBR and PAYE. Under these plans, debtors are expected to pay 15% (IBR) or 10% (PAYE) of their "adjusted gross income" (minus the poverty guideline based on state and family size), but would an inheritance be treated as "income" that one would be expected to pay 10% of?

The Federal Student Aid website defines AGI as "your or your family's wages, salaries, interest, dividends, etc., minus certain deductions from income as reported on a federal income tax return." The PAYE calculator recommends that users look to their tax returns (Line 4 on Form 1040EZ, Line 21 on Form 1040A, Line 37 on Form 1040) for an "estimate" of one's AGI, so I am not sure if it is 100% accurate as it is just an estimation. Any advice from those of you who are familiar with this sort of thing would be greatly appreciated. :wink:

Estate tax gets paid by the estate, not the person receiving the inheritance. It doesn't count towards AGI, so I doubt it matters for PAYE/IBR purposes.

Also, the Menendez brothers didn't get away with it dude.

20141023
Posts: 3072
Joined: Mon Jun 18, 2012 12:17 am

Re: Inheritance and Income-Based Payments

Postby 20141023 » Sun Apr 21, 2013 11:17 pm

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Last edited by 20141023 on Fri Sep 27, 2013 4:10 pm, edited 1 time in total.

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jbagelboy
Posts: 9645
Joined: Thu Nov 29, 2012 7:57 pm

Re: Inheritance and Income-Based Payments

Postby jbagelboy » Mon May 06, 2013 7:43 pm

Lol. coming into a bit of money sometimes soon, Reg?




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