<p>Some of the colleges that I am applying to require that I send in the 2005 federal income-tax returns. My parents received a $100K bonus last year (2005), and is not representative of what we usually earn. I am planning on sending in tax returns for 2003 and 2004 because this is closer to what we will be earning for 2006. I will be calling the FinAid offices about this.</p>
<p>My question is about the CSS Profile, because it states to use the 2005 forms. However, that year does not reflect my family's financial status well. Am I still obligated to use that year?</p>
<p>If the university asks for the 2005 tax forms, then send the 2005 tax forms. You will also be completing the 2006 tax returns and THOSE will be the basis for completing your FAFSA and CSS Profile. Yes the Profile right now says to use the 2005 return...but that's because you haven't completed the 2006 one. You can also complete the Profile using current pay receipts and assets making a good and as close to possible estimate of your 2006 income/assets. Re: NOT sending the 2005, and sending everything else...don't you think the college will wonder WHY? Send them what they request. Otherwise it is unlikely that they will process your finaid applications (at least for institutional aid). You can include a letter explaining the difference in salary for the 2005 year. I will say...colleges DO expect that families will contribute to their student's college educations. I do not know whether they would have expected your family to have anticipated your college expenses and perhaps put some of that $100,000 bonus aside for this. Some schools do look for trends in income asking for multiple years of tax returns. But most schools do award finaid based on the previous year only...so for the 2007-2008 school year, finaid will be awarded based on the 2006 tax year.</p>
<p>Send a letter of explanation with the 2005 forms. Include a breakdown of what you think will be the 2006 figures. Financial aid offices appreciate as much info as you can provide to understand unusual situations. Follow it up with a phone call once you are pretty sure they have received your forms (it makes it easier if they can see what you are talking about).</p>
<p>There will most likely be some expectation that a portion of the bonus should have been saved for college. Don't be surprised.</p>
<p>Oops, I think I should've made myself a little clearer. I will send in 2003 & 2004, as well as 2005, of course. I will also be sending in an explanation of the circumstances in 2005 and what the 2006 tax returns will look like. Sound good?</p>
<p>They don't care about 2003 & 2004. There is a space in the CSS profile where you/your parents can write about your financial situation. When you fill out the FAFSA in Jan 07 and send in your 2006 tax information you can ask the FA office to amend your package accordingly</p>
<p>a 100K bonus?
Holy crap!
you know thats like double what the average family in this country makes in a year right?</p>
<p>Puzzling...again I say...Send the colleges what they ASK for, not what you feel like sending them. If they ask for your 2005 tax returns, then send those. You can send a letter of explanation with them...but send them. DO NOT send them things they do not want...and DO send them what they ask for. If you do not send the required documents, your finaid application might not get processed....period. If you are applying for finaid, and you are asked to send in the 2005 tax returns...send them. When you complete the 2006 returns there will be a difference, and your finaid is usually based on the income from the previous year in this case 2006. But as others have noted, there may be an expectation that some of that bonus should have been reserved for college expenses. And where did that money go? If it is in assets, it will show up anyway (in savings or somewhere). Be honest, send in the 2005 forms with a letter explaining that this includes a bonus.</p>
<p>since for the year 2007-2008 you will also be sending in financial information for 2006 which as you say is more representative of your families earnings I really don't see the problem</p>
<p>Our experience was that schools don't adjust aid expecting an adjustment in income- however- you can resubmit supporting details when the adjustment has occurred.
For example- my H was expecting to get laid off after 9/11, the college didn't adjust the aid package, until he had actually * was laidoff* and we had the paperwork to show that, but then they did so promptly</p>
<p>Emeraldkity4, my friend's husband got a $100K+ blip in income one year which was unfortunately during a college year. He actually had very little income that year, as he was let go from his job late in the previous year. He started his own business which necessitated cashing in retirement money which does count as income when you do that. As far as the college was concerned, the money that was crucial in getting true earned income for he family for that year and future years had to be split with them. No amount of letter writing and talking made a difference with the colleges associated with their daughter . That is one of the flaws in the financial aid system is that someone who made millions prior to the crucial college year, and blew the money is treated the same as someone who has always made a modest sum, if the "millionaire" happened to make a small amount that year. And alternatively, someone who get a windfall one year which is out of ordinary, if it is the crucial year, there are colleges that will not be interested in the income history at all. You made $X this year; a set % of that income is earmarked by FAFSA for college.</p>
<p>cpto...you are right about windfalls that occur DURING the college years (or the previous year for those who will be freshmen). BUT the OP's "windfall" came in 2005 and the finaid aps will use the information from the 2006 tax year. The only issue the OP would have is if this $100,000 is in regular savings accounts or something like that. Then it would be viewed as an asset regardless of WHEN it was earned. If it's an asset (cash, bank accounts, etc) the day you hit the "send" button for the FAFSA...then it's an asset...regardless of when the money was earned.</p>