Should I file married joint or separate for 2025 taxes?

What about retirement accounts? If they file separately, does that affect how much they can contribute to IRAs or 401ks? Also, does the side gig income complicate things further if they file separately?

For retirement accounts, filing separately can indeed affect IRA contribution deductibility. If you file separately and either spouse is covered by a workplace retirement plan, the income limit for deducting traditional IRA contributions is much lower - just $10,000 compared to $228,000 for joint filers in 2025. So that's another potential drawback. Regarding the side gig income, it does add another layer to consider. When filing separately, you'd report that income only on your return, not your wife's. You'd still owe self-employment taxes on it either way, but the income tax impact might differ depending on which filing status puts you in which tax bracket. With separate filing, you might end up in a higher bracket with that additional income compared to if it were spread across a joint return.

Does this actually work with student loan calculations? My accountant told me it's complicated because the loan servicers look at AGI, but some tax benefits affect AGI differently depending on filing status.

I'm a little skeptical. Can it really analyze income-based repayment implications accurately? That involves future projections of what you'll pay over time, not just this year's taxes. And does it factor in potential loan forgiveness if that's part of your spouse's plan?

Yes, it absolutely handles the student loan calculations. It factors in how your AGI changes under different filing statuses and then calculates the impact on your income-based repayment plan. It even shows the monthly payment difference you can expect. For your question about loan forgiveness and long-term projections, that's actually what impressed me most. It doesn't just look at this year's tax implications - it projects the total cost over time, including potential loan forgiveness. In my case, it showed that even though we'd pay more in taxes filing separately, the 10-year savings on student loans made it worthwhile because my wife is working toward PSLF (Public Service Loan Forgiveness).

Wait, so how does this actually work? Do they just sit on hold for you? I'm confused about how they're able to get through when normal people can't.

This sounds like BS honestly. The IRS won't discuss your specific tax situation with a third party unless you have a power of attorney filed. They're super strict about that. So how would this service actually help with personalized advice?

They use technology to navigate the IRS phone system and wait on hold for you. Once they have an actual IRS representative on the line, they call you and connect you directly to that person. You don't talk to Claimyr about your tax situation - you talk directly to the IRS agent. They're just eliminating the hold time. Regarding your concern about third parties, that's exactly why this service works so well - they don't act as an intermediary for the actual tax discussion. They simply connect you directly with the IRS once they've navigated the hold system. When the IRS agent comes on the line, you're the one speaking with them, not Claimyr. I was able to ask detailed questions about my specific situation with student loans and filing status options.

I hadn't even thought about the state tax implications. We're in Illinois - do you know if they have any specific rules about having to match your federal filing status on state returns?

Illinois actually gives you some flexibility. While many states require you to use the same filing status on your state return as you do on your federal return, Illinois allows you to choose married filing jointly for your state taxes even if you file separately for federal. This can be advantageous in your situation - you could potentially file separately for federal to benefit your wife's student loan payments, while still filing jointly on your Illinois return to maximize state tax benefits. Just be aware that this makes your tax preparation a bit more complex, as you'll essentially be preparing multiple versions of your returns. Most tax software can handle this, but it might increase the cost of preparation.

It really depends on your specific income levels and loan balances. For us, it was the opposite. Filing separately increased our tax bill by $1,700 but decreased my wife's loan payments by $320/month, so about $3,840 annually. Net benefit of $2,140 by filing separately. Worth doing the math both ways!

Welcome to the community! Regarding your mortgage interest deduction question - since you only had the mortgage for about 2 months of 2024 (November-December), the deduction might not be as significant as it would be for a full year. However, don't forget that you can also deduct the points you paid at closing if you paid any, plus property taxes for those months. For your side gig quarterly estimated taxes, the calculation method stays the same regardless of filing status, but the actual amount might change. If you file separately, that $8k gets added only to your income rather than being spread across a joint return, which could bump you into a higher bracket. You'll want to recalculate your estimated payments once you decide on filing status. One more thing to consider - since this is your first year filing as married, you might want to consult a tax professional for this year just to make sure you're optimizing everything correctly. The combination of new marriage, home purchase, student loans, and side income creates enough complexity that professional guidance could pay for itself. Good luck with the decision!