I forgot to reiterate that if you answered the question with $4000 of taxable scholarhips/grants reported to the IRS in AGI, then that amount is subtracted from AGI and doesn’t count against the $6230 income allowance.
Are you sure the added AGI for my daughter isn’t just going to raise my EFC?
Annoyingdad, in your post about not being able to fully interpret her acct statement from the school, you made an error: the sub and unsub Stafford loan amounts for spring semester were NOT credited in 2014. The statement shows that they were posted/credited to the account on January 5, 2015.
(Did not read the following posts closely enough to see if/ how that affects the advice you gave)
Hmm, I had noticed that on a later day. I thought I posted a correction but apparently not.
As to how it affects the later advice, it means less expenses paid in 2014. How that affects what spunk does tax-wise is going to depend on what the accountant says when she crunches the numbers.
At his point, all spunk has done is submit fafsa with an estimated amount for student AGI and an estimated amount for the amount of taxable scholarships reported to the IRS in AGI. If it doesn’t work out that doing this results in an overall tax gain for spunk’s family or he has less that $4000 of expenses for the AOTC, when fafsa is updated via the DRT or otherwise, student AGI will be less and the amount of taxable scholarships reported to the IRS will be less. Since the amount of scholarships reported to the IRS in AGI is subtracted from AGI in the formula, there’s no difference fafsa-wise.
I still haven’t submitted yet. It’s all filled out and my daughter is going into her 2nd year so I don’t think it matters if I rush it. I wanted to go over my tax numbers first which I did and I had about 10,000 extra income which should be going on to my AGI . The only aid she got last year was a Pell Grant and work study (which she did not use) so I suspect her Pell will go down. I was going to see my accountant or at least talk to her by the weekend. I’m not sure how much she knows about this subject. Since I’m going to have to use the Data retrieval tool I’m not sure if it matters whether the numbers are exact right now anyway. As long as my AGI is accurate I guess .