Income Contingent payments

[Count Six]

Does anyone know or have experience whether Direct Income Contingent repayment is calculated using AGI or modified AGI?

 

For example, say I work half the year in Germany, and my income is $150,000, half German-source and half domestic. IRS has a foreign income exclusion which would cover all my German income, and result in a MAGI of $75,000. If Direct receives pre-modified AGI numbers for the payment calculations, they see 150K - if they're getting MAGI from IRS, then they're going to see 75K - that's quite a big difference in monthly payments.

 

Everything about the ICR plan available online says AGI is used, but since AGI sometimes is used loosely to mean MAGI, I'm none the wiser.

Edited September 26, 2006 by Count Six

[Count Six]

I took a look at the 1040 - the exclusion comes off on line 21, so it's part of the AGI calculation later on at line 37. So, assuming all that Direct Loan gets from IRS is the AGI total from line 37 (or equivalent) then foreign income, interest income from EE Bonds, deductions for student loan interest, and other modifications to AGI are not included in Direct Loan's payment calculations.