Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

My wife works profit, makes maybe 20% of my salary. I have…

Customer Question
My wife works for not...
My wife works for not profit, makes maybe 20% of my salary. I have been told that she will only qualify for a student loan forgiveness program if we file our tax returns separately. Is that true?
Submitted: 2 years ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 7 minutes by:
2/13/2016
Tax Professional: Gina CPA, Certified Public Accountant (CPA) replied 2 years ago
Gina CPA
Gina CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 19
Experience: CPA with 10 years of problem solving tax experience.
Verified

Hello, You will generally pay more combined tax on separate returns than you would on a joint return.

If you choose married filing separately as your filing status, the following special rules apply. Because of these special rules, you usually pay more tax on a separate return than if you use another filing status you qualify for.

  1. Your tax rate generally is higher than on a joint return.

  2. Your exemption amount for figuring the alternative minimum tax is half that allowed on a joint return.

  3. You can't take the credit for child and dependent care expenses in most cases, and the amount you can exclude from income under an employer's dependent care assistance program is limited to $2,500 (instead of $5,000 on a joint return). However, if you are legally separated or living apart from your spouse, you may be able to file a separate return and still take the credit. See Joint Return Test in Pub. 503, Child and Dependent Care Expenses, for more information.

  4. You can't take the earned income credit.

  5. You can't take the exclusion or credit for adoption expenses in most cases.

  6. You can't take the education credits (the American opportunity credit and lifetime learning credit), the deduction for student loan interest, or the tuition and fees deduction.

  7. You can't exclude any interest income from qualified U.S. savings bonds you used for higher education expenses.

  8. If you lived with your spouse at any time during the tax year:

    1. You can't claim the credit for the elderly or the disabled, and

    2. You must include in income a greater percentage (up to 85%) of any social security or equivalent railroad retirement benefits you received.

  9. The following credits and deductions are reduced at income levels half those for a joint return:

    1. The child tax credit,

    2. The retirement savings contributions credit,

    3. The deduction for personal exemptions, and

    4. Itemized deductions.

  10. Your capital loss deduction limit is $1,500 (instead of $3,000 on a joint return).

  11. If your spouse itemizes deductions, you can't claim the standard deduction. If you can claim the standard deduction, your basic standard deduction is half the amount allowed on a joint return.

Ask Your Own Tax Question
Tax Professional: Gina CPA, Certified Public Accountant (CPA) replied 2 years ago

To directly answer your question, yes you may only qualify for student loan forgiveness because as you can see from the above information I posted, you don't qualify for any of the education credits if you file separate returns.

Does this fully answer your question today? I want to make sure I provide you with outstanding service.

Ask Your Own Tax Question
Customer reply replied 2 years ago
Still a little confused does she only qualify for dept forgiveness is she files separately?
Tax Professional: Gina CPA, Certified Public Accountant (CPA) replied 2 years ago

Yes, that is all she could be considered for.

Ask Your Own Tax Question
Tax Professional: Gina CPA, Certified Public Accountant (CPA) replied 2 years ago

Here is the link for the the forgiveness program. https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service

Ask Your Own Tax Question
Tax Professional: Gina CPA, Certified Public Accountant (CPA) replied 2 years ago

Please let me know if you have additional questions, and don't forget to rate as that is the only way I know you are happy with my answer. Thank you :)

Ask Your Own Tax Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Gina CPA Your Own Question
Gina CPA
Gina CPA
Gina CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 19
19 Satisfied Customers
Experience: CPA with 10 years of problem solving tax experience.

Gina CPA is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
My wife died on January 9 2017. I am filing as a qualified
Hi my wife died on January 9 2017. I am filing as a qualified widower. Her students loans were forgiven and I got a 1099c.. do I have to claim the amount as income on mine? … read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,435 satisfied customers
I qualify for student loan forgiveness if my husband and I
I qualify for student loan forgiveness if my husband and I file separately, but not if we file joint. Is it legal for us to file separately just for the loan forgiveness and do we just have to file th… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I'm wanting to file an S corp but want to report as little
I'm wanting to file an S corp but want to report as little income as possible because my student loan repayment is based on my personal return. I'm considering starting a business in my wifes name, pa… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,328 satisfied customers
Student loan deduction.My wife has a 60k student loan. Because
Student loan deduction. My wife has a 60k student loan. Because of our combined income me 100k and my wife 40k per year we do not qualify for any student loan detection or forgiveness program's. Some … read more
Tyrone J. Taylor
Tyrone J. Taylor
Masters
52 satisfied customers
I graduated medical school in June of 2015 and have since
I graduated medical school in June of 2015 and have since been self employed with my medical software consulting firm I own with two other partners. We are self employed LLC taxed as S corp with salar… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wife and I have filed our taxes Jointly last 3 years
My wife and I have filed our taxes Jointly for the last 3 years while one of us worked, and the other was a fulltime student. We are now both working and want to file seperately to keep our student lo… read more
abci168
abci168
Principal
27 satisfied customers
My wife and I filed our taxes as married filing separately
My wife and I filed our taxes as married filing separately last year. The reason for this is that I have a lot of student loan debt and only make about 20,000 a year. Her income is around 100,000 a ye… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
My wife and I received a loan forgiveness on our homeloan.
My wife and I received a loan forgiveness on our homeloan. Initially, she wanted to do seperate filling. Now last minute she want to do them jointly. I have own busines and I pay at the end of the yea… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My wife recently started taking online college courses. She
My wife recently started taking online college courses. She is a county employee and her tuition is being paid for by the State of Delaware via the Ada Leigh Soles scholarship program. It however is n… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I will be graduating with a Masters degree soon and my student
I will be graduating with a Master's degree soon and my student loans will be due early next year. My husband earns significantly more income than I do and in estimating my monthly student loan repaym… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
I am paying my daughters private college loans and want to
I am paying my daughters private college loans and want to know if I can use the 1098 that she gets on my taxes. I can prove that I am the one paying the loan back and I am the cosigner to the loan.… read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
My husband and I am considering filing married filing separately
My husband and I am considering filing married filing separately due to my large student loan. I make 70k a year and my husband makes 40k. We have a new born child, 2 paid for cars and no credit card … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
I have a tax question regarding the income based loan repayment
I have a tax question regarding the income based loan repayment program (IBR) and whether or not me and wife should file "married filing separately," or not. (IBR is a program where you pay a percenta… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I need some advice for financial planning and managing student
I need some advice for financial planning and managing student loans. My girlfriend has just realized she has massive student loan debt and neither of us know the best way to approach the situation. S… read more
TaxWhisperer
TaxWhisperer
Principal
Master's Degree
24 satisfied customers
I live and work in the state of Maine. I accepted a job at
I live and work in the state of Maine. I accepted a job at a hospital, and as part of the agreement for employment I received tuition reimbursement. In 2009 I received $5,000, and in 2010 and 2011 I r… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
my wife had an outstanding student loan debt long before marriage.
my wife had an outstanding student loan debt long before marriage. she hasn't worked in over 10 years. The debt collector took 1/2 of MY stimulus pay. I've filed an injured spouse form, which has work… read more
Marvin,EA
Marvin,EA
Enrolled Agent
Bachelor's Degree
1,605 satisfied customers
My wife and I file joint taxes each year. She does not ...
My wife and I file joint taxes each year. She does not work, I am the only wage earner. My wife has a delinquent student loan. Will our refund be offset even if she has not earned any wages? We live i… read more
Wendy Reed
Wendy Reed
Master Tax Advisor Enrolled Agent
Master's Degree
60 satisfied customers
Hi, My wife is a medical graduate from overseas and she
Hi, My wife is a medical graduate from overseas and she does not work. In preparation to get accepted into a medical program, she needed a US medical experience. She volunteered in a clinic for 6 mont… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x