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Paul Ryan 2015 budget and PAYE changes
Hello Heather,
The President’s 2015 Budget proposed additional changes to PAYE such as:“Calculating payments for married borrowers filing separately on the combined household Adjusted Gross Income”
In April 2014, however, House rejected President’s 2015 budget and approved Paul Ryan 2015 budget.
http://townhall.com/tipsheet/guybenson/2014/04/10/so-close-house-rejects-obama-budget-4132-n1822516
Since I am on PAYE and divorcing, I have couple questions:
1. Ryan 2015 budget proposes eliminating tax loopholes, but this is not clear if it includes: “Calculating payments for married borrowers filing separately on the combined household Adjusted Gross Income” Do you know anything about it?
2. Can they change PAYE and start using combined AGI for married filing single borrowers anyway, even if they did not approve President’s budget for 2015?
2.What does it mean that Ryan’s budget was approved by House? Does it mean that it will be accepted ? What is the probability that it will be approved by Senate and becomes a plan for the next year? For the next 10 years?
I am in PAYE and I have a big student loan and a modest income. In addition, my husband refused to help me and offered divorce, after I was academically dismissed from my grad program last year. He has a big income, and I am afraid that if we don’t get divorced by the end of this year, his income will be included for my PAYE payments calculations for the next year.
The budget process is bizarre, no? The Washington Post has this informative piece about it: http://www.washingtonpost.com/wp-srv/special/politics/federal-budget-process/budgetprocess.pdf and this is a really good step-by-step description: https://www.nationalpriorities.org/budget-basics/federal-budget-101/federal-budget-process/ But no, neither the White House’s nor the House’s budget sets out the final deal with the budget. They serve as blueprints and a starting point. They are meant to finalize the budget by Oct 1 but often do not and instead pass Continuing Resolutions to keep government going until a budget can be passed.