Is there a good calculator for married filing separately borrowers who both have loans so we can figure out which way we need to file taxes?

Also, can both spouses claim the kids? Very confused by this one and it will make or break us switching to repaye or filing taxes separately and doing IBR. We both have loans amd both qualify for public service. The legal lingo states “more than 50%” which makes it seem only one spouse can claim the kids on a married filing separately IBR application, but other things I have read make it seem like both spouses are able to claim kids on the app when filing separately. Some clarification on the law would be helpful so we can make an educated decision when filing in a few days. TIA!

I wonder this too…you might want to reach out to your loan servicing company and get feedback from them, in writing if you can…let us know if you find out anything! You are right, the legal definition sounds like only one parent can support children more than 50%, but it’d make more sense if both parents could claim the same family size.

Thank you for your quick reply. It would be great for clarification from the Department of Education or a loan holder. However, from research on other sites, it appears you both can claim the kids.

What information did you find on this issue from other websites?

Nothing formal, just reading the available information that is out there about the IBR repayment plan on Studentaid.org, this site, and educatedrisk.org (see below). My loan servicer even told us to do that when we sat down with them, because it specifically states that it is different than filing your taxes. It was the new rewording about dependents on the new online application for re-certification that seemed to be ambiguous, which is why I asked the question originally. However, after thinking it through myself, I believe I was overthinking the question. Because we are married, as a family, we both provide over 50% of our children’s support, but we wouldn’t provide over 50% of an extended family members support. This is different than the tax exemptions for IRS purposes. I feel that we should go with the original interpretation of the law assuming it hasn’t changed, which I don’t believe it has. I am continuing to do the IBR method I have always done (and my spouse has always done). I’m not a lawyer, but I am filing out the application to the best of my ability, with the information I have available, so I feel comfortable doing what I was instructed to do when I switched to IBR years ago… Anyone else feel free to chime in on this though!

Pasted from: http://educatedrisk.org/analysis/family-size-ibr-paye-applications
Family Size Is Different For IBR/PAYE
The determination of family size for the IBR and PAYE application is different than the number of exemptions (or dependents) claimed on annual tax filings.  Family size for the IBR/PAY application is defined by regulations from the Department of Education.  Dependents and Exemptions are defined by federal tax laws and are used for tax savings.  Do not confuse the two definitions because it can cost borrowers thousands of dollars over time.

Under the current regulations, a borrower may claim his or her spouse (and children) on the application to increase the poverty threshold (and reduce monthly payments).  Further, even if the couple files taxes separately, the other spouse may also claim this same Family Size number on his or her IBR/PAYE application.