Keep in mind how complicated it can get. The formula is, I believe, you pay 10% of the amount by which your income exceeds 150% of the poverty line for your family size.Campagnolo wrote: This is outrageously helpful: thank you.
The tax issue is where things break down for me, because I just don't know that much about it. The SO has no debt and there won't be any chilluns for quite a while, so scenario 1 makes more sense. I'm going to call the schools now and figure this out with them. You've given me a great primer here from which to ask questions. It's wild to think the SO could work part time as a nurse and have us come out ahead with regards to take home pay.
All right, back to the regularly scheduled job hunt. Sorry to barge in here, but I figured if anyone could help, it would be you lot. Maybe I'll be joining you soon.
Thanks again!
Therefore, the less money your wife makes, the less beneficial it is to utilize married filing separate. For example, if you make $50,000 and your wife makes $25,000, then your payment if filing jointly would be $440 (or so) a month, while married filing separate would be $280, a difference of about $1,900 over the course of the year. The loss of the student loan interest deduction by itself would be about $700.
My general conclusion from my rudimentary research is that, for many people, IBR would almost assuredly make it beneficial to file separately unless you have a couple kids. Could get tricky with itemization of deductions, though.