Yes, you read it correctly, filing your taxes at the wrong time or the wrong way could cost you hundreds in student loan payments. Your tax preparers likely do not know this important information which makes it a bit more complicated. Tax preparers are not versed on student loan programs and will only be doing what they know to be best from a tax standpoint.
Programs such as Income-Based repayment will use your most recently filed tax return to qualify you for the program as well as set your payment amount for the upcoming twelve months. Most of you will have a lower income on your 2013 return than you will on your 2014 return. In these cases, you want to apply for Income-Based repayment before you file your 2014 return.
Or maybe you have not filed at all in 2013 and were not planning to file for 2014 because you did not have income while in school, it is important to file.
Or maybe you are married, how you file your taxes (married filed separate or married filed jointly) is also a key factor in determining how much you will pay on your student loans.
As you can see, there are many variables to consider when filing taxes but we won’t keep preaching on the importance of how and when you file taxes in this email as I know you are all very busy, but please do not file taxes without speaking to us first, we can help you determine when and how to file to ensure you have the most advantageous outcome.
Contact us at (727) 200-9780 or set an appointment at www.meetme.so/DegreesofSuccess.