Student Loan Planner Tax Season Student Loan Tips & Big Mistakes We See
Feb 24, 2026
Sim Terwilliger, Director of Tax at SLP Wealth and CFP®/CSLP® who specializes in taxes tied to student loans, breaks down tax filing moves that affect income-driven payments. She explains when filing separately can cut payments, how extensions can be strategic, and common backdoor Roth and reporting pitfalls. Practical filing traps, SALT cap shifts, and timing tactics also get clear, actionable attention.
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DIY Split Mistake Cost $20,000 In One Case
- A self‑prepared return in a community property state split income incorrectly and caused about a $20,000 overpayment.
- The preparer corrected the split and recovered most of the tax, illustrating the risk of DIY MFS without Form 8958 expertise.
Fix Backdoor Roths Immediately And File Form 8606
- Avoid incorrect backdoor Roths and missing Form 8606 because they trigger a 6% penalty or taxable conversions.
- Convert non-deductible Traditional contributions promptly and watch for the pro‑rata rule if you hold pre-tax IRAs.
Amend From MFS To MFJ Only When Worthwhile
- Only amend MFS to MFJ if the refund/tax savings justifies the work and potential IRS notices.
- Our internal threshold is roughly $2,000 before we recommend pursuing an amendment.