Hi Heather,

I’m really hoping you can help me! 

My husband and I got married in 2012 and have been filing MFJ since then (2012 tax year & 2013 tax year).

I am currently in forebearance on my law school loans but will be starting a PSLF eligible job in March 2014. I just called to set up my IBR (to start in April 2014) and was told that because I filed MFJ last year (2013 tax year) that my IBR will be based on our joint income. Thus, when I submit my paystubs for my new PSLF job, I will also need to submit my husband’s paystubs as well. Needless to say, this will put “my” income for purposes of IBR calculations way higher than I want.

What are my options? We plan to file MFS for the 2014 tax year. In the meantime, can/should I forebear my monthly payments? (I have been in forebearance since December 2013). Will our 2014 MFS filing help with my IBR payments next year? (Will that not be until April 2014 since that’s when taxes are due?)

I’m trying to accomplish several goals: lowest payments possible + start making eligible PSLF payments ASAP + avoid negative tax consequences for my husband and me.

Any help/suggestions is GREATLY appreciated—thank you so very much!

I thought that the IBR monthly payments were determined as based on the AGI on your last tax return. In other words, I thought that your AGI on your MFJ 2013 tax return would determine your IBR payments through 2014, and then your 2014 tax return (either MFJ or MFS) would determine your 2015 IBR monthly payments—is this not the case?

I filed MFJ for this past (2013) tax year, and am planning on applying for IBR (for PSLF) this month—is it not correct that my IBR payments would be based on the AGI of my 2013 MFJ tax return, until the annual recertification?