- Joined
- May 16, 2016
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My wife and I just got married and will begin intern year in a couple of days. We are completing our W4s for the year and want to confirm what we think we know about this process and IDR that we've qualified for.
Because we had $0 income for the last year, we decided to apply for REPAYE before we were legally married and were accepted allowing us to have a $0/mo for the next 12 months. This allows us to have 1/2 of our interest covered for at least the next 12 months. However, since we will both have a resident income this year, it sounds like PAYE is the way to go for the next few years? This would let us have lower monthly payments than if we were to reapply for REPAYE?
And for the sake of our taxes and while we are in PAYE (and I guess when we become attendings?), I am also assuming we should file "married filing separately" so that our monthly loan repayments are lower. How negatively will this affect our taxes and withholding? Would the balance of lower loan repayments offset the taxes so that this works in our favor?
#forcedintoadulthood
Because we had $0 income for the last year, we decided to apply for REPAYE before we were legally married and were accepted allowing us to have a $0/mo for the next 12 months. This allows us to have 1/2 of our interest covered for at least the next 12 months. However, since we will both have a resident income this year, it sounds like PAYE is the way to go for the next few years? This would let us have lower monthly payments than if we were to reapply for REPAYE?
And for the sake of our taxes and while we are in PAYE (and I guess when we become attendings?), I am also assuming we should file "married filing separately" so that our monthly loan repayments are lower. How negatively will this affect our taxes and withholding? Would the balance of lower loan repayments offset the taxes so that this works in our favor?
#forcedintoadulthood