Spotlight on Student Loans:
First comes love, then comes marriage, then comes … higher student loan payments?
Love & Taxes
Valentine’s Day is around the corner and love is in the air! If you got married in the last year, you get to experience your first Valentine’s as a married couple! But after you celebrate the holiday in your new marital status, you can look forward to your first tax season together. Filing taxes as a couple comes with its own complexities and pitfalls and can put stress on a new marriage, so it’s a good idea to start preparing for those conversations early.
Love, Taxes, & Student Loans
Filing your taxes as a married couple can save a fair bit of money, but also comes with added considerations, especially if one or both of you have student loans. The IRS gives preference to those who file as “married” with more favorable tax brackets. You have to be careful, however, because your tax return and student loan payments are interconnected, since your monthly payment is based on your tax return (if you have an IDR plan). If you’re recently married, there’s a good chance that your previous tax strategy will need to be adjusted now that you’re married.
Marriage = A New Approach to Payments?
So how do you formulate a cohesive strategy to tackle both your tax liability and student loans? The best answer is to ask the experts: it can take a lot of number crunching to determine what the best plan is for you and your spouse. There are a number of variables, including whether to file together or separately, which IDR plan to have (some treat married couples differently), and more. Navigate is not a tax agency, so while we can help you find the best approach for your loans, you’ll want a tax specialist to complete the picture. Together, we can help you craft a strategy to save you the most money on your loans AND your taxes. It’s a win-win!
If you’re pursuing Public Service Loan Forgiveness and you haven’t met with us yet, schedule your free 15-minute Discovery Session to find out if you qualify for PSLF, or what you can do if you don’t.