Hello Heather,

Thank you for your help with this. I am currently repaying using the PAYE plan, and have recertified employment every year as I work for a government agency and am planning to benefit from the PSLF (likely will not complete 120 payments until 2025). I am legally married, however earlier this year unofficially separated. My spouse and I now reside in different residences (and I purchased my home), and we share no bills/expenses. I am struggling to determine whether it is in my best interest to file as usual, without providing any additional information along these personal lines, or if it would benefit me with respect to my monthly payment amount to advise them of “significant life changes affecting my income.” Here is some information I believe is relevant to making the most beneficial decision.

Our married-filing-jointly AGI for 2016 was $122,924. If the 150% above poverty line income for a 2-person household in 2016 was $24,030, then our discretionary income would have been $98,894. Half of that of course would be $49,447.

However, my income was higher than my spouse’s income in 2016. My “Total state wages and tips” came to $75,378; my spouses “Total state wages and tips” came to $51,923. It is worth noting that these, of course, are not adjusted, simply total earnings (I am not sure where to look on my tax return to see the equivalent figures in comparing to the above joint AGI).

On the one hand it would seem prudent to file without any additional information (i.e., just married filing joint), given that it would reflect half of our joint income was less than what my income was (about $10,000 less; that is, if that is how the formula works). Alternatively, part of me thinks advising them I am now solely responsible for paying for an entire household of bills seems prudent. What is in my best interest given I am seeking to pay the least amount monthly per PSLF guidelines?