"1) what was the motivation to file separate in the first place? That may help us understand why you now want to file joint."
Joint vs. Separate Analysis indicated separate returns would be more favorable.
"2) what about the loan foregiveness program is now motivating you to want to go back and file joint?"
Forgiveness of $10,000 in student loans (per person) thus changes the calculus considerably. The income limits are $125,000 per person if filing separate returns (including MFS), or $250,000 if filing a joint return. Our combined income is under $250,000, but my individual income is greater than $125,000. This new student loan forgiveness program is essentially another COVID stimulus payment, indirectly tied to income tax return information as previously but not classified as a tax benefit this time because Congress didn't authorize it.
"it will be a 'trust me' because the Department of Education can not access the IRS records by law. "
I wouldn't be sure about that. There's a lot of money on the line for a hunch like that. While DOE may not be able to access tax returns directly, they could require us to submit evidence of eligibility in the form of tax return transcripts. In concept, a superceding return would be the only way to change what will be reported on an IRS tax transcript, if it actually works that way. We simply don't know how they are going to verify income, but I need to figure out how to get the joint $250,000 limit to apply to us notwithstanding the spouse's separate return already filed.
