I live in kind of a weird situation where my parents are separated but not legally since they’re Catholic. Every year I get free lunch because my mother states that she’s the sole income source of the household. However, my parents still file taxes together and their combined income is way above the eligibility requirements for free lunch.
I want to apply for the NACAC and SAT fee waivers for college apps but I’m worried that would look sketchy when I submit FAFSA and my parents’ combined income disqualifies me from need-based aid.
This is an issue that you need to take up with your high school since they are the ones who will be signing and issuing the fee waivers.
Some schools have different policies for distributing fee waivers; some will make the priority those who show up on the school’s free lunch list, their school’s transitional housing list and students in foster care and prioritize those kids.
Most schools will look at the following factors:
The student’s annual family income falls within the Income
Eligibility Guidelines set by the United States Department
of Agriculture (USDA) Food and Nutrition Service.
2. The student is enrolled in a federal, state, or local program
that aids students from low-income families (e.g., TRIO
programs such as Upward Bound).
3. The student’s family receives public assistance.
4. The student lives in federally subsidized public housing,
a foster home or is homeless.
5. The student is a ward of the state or an orphan
If you do not meet any of these criteria, the school may ask for proof of your family income which may include asking for copies of your parents tax forms.
SAT fee waiver forms are limited (the college board sends fee waivers based on the number of students at your school who used fee waivers the previous year).
Your parents are separated so only the custodial parent’s info goes on FAFSA. Does not matter if they’re not “legally” separated. They’re separated because their marriage failed.
I do qualify for the USDA free lunch thing. I still have to send in my free lunch app for this year so I’ll hand that in tomorrow and then wait a day or so for it to process. Afterwards I’ll go straight to my College & Career center and ask for those fee waivers.
For some reason I thought that my parents had to have at least a legal separation in order to only list one parent on the form. Whoops thanks for the clarification.
What kind of proof does there need to be of a separation? Are bills sent to my father’s address good?
If you are living with only one parent, then you use their income for your free lunch application
Remember the fee waiver is just the tip of the iceberg. Make sure that you are running the net price calculator to ensure that you have done financially feasible options
You parents should file separate tax returns for 2015 if they do not live together. It will be better for your college finaid. Your father will file with his new address. Filing joint return in this case may create complications.
I’ll definitely talk to my parents about having them file separate returns.
Fortunately, my father is more than willing to help me out with my tuition and dorm but he insists that all other fees (food, books, personal expenses, etc.) are on my mom so I just wanted to relieve the burden of having her shell out $450 on college apps alone.
Whether your parents file jointly or separately is up to them. Legally, they can file as joint since they are married. There are some benefits to filing together that you (and others on this forum) may not understand. You may have some extra steps to unravel their income if they file jointly, and you will probably be selected for verification, but that’s nothing to panic about.
If they are not divorced and file separately they will not be eligible for the up to $2500 American Opportunity Tax Credit. This is a potential loss of up to $10,000 over 4 years for each kid who goes to college.
The parents are separated, live separately and file separately. They will not lose AOTC.
This is not the same case when people live together and file separately.
If they file together but specify separated with only one parent on FAFSA the FAFSA may fail DRT check or it may autocorrect their family status. I would at least call FAFSA to discuss before doing so.
CCDD14, the OP said her parents file jointly even though they live separately. If they each file ‘married, filing separately’ they would not be eligible for the AOTC and possibly other credits. I just don’t think ‘we’ on CC know enough to advise the OP to tell the parents what to do (nor does the OP).
Each government program can have its own definition of ‘household.’ The free lunch program can define the household and the income to be included differently than FAFSA, which we know is different than the IRS. The OP needs to work with her guidance counselor on the fee waivers and with her parents on the FAFSA and tax issues.
I do not suggest that they should file “married, filing separately”. If there are no other dependents one parent can file as Head of Household and another one as Single.
Yes we do not have the full picture to give definitive advice. I just provided food for thoughts.
But see, you can’t file as single if you are married. In some circumstances one might be able to file as HOH, but not always and that might be the parent with little or no income so it doesn’t help with the AOTC or other credits.
OP, have your parents get their own tax advice. Know that it is possible to file for FAFSA with a different status than taxes, that you will most likely be selected for verification (or not be able to use the DRT) and that you can work it out.
I’m not going to advise them about what they should do with their taxes but and what kind of options there were so I could bring it up later when we’re talking about financial aid and all that for school when my dad visits in a few days.
All of you bring up very good points so thanks for that. :)>-
Their tax filing status has NO impact on financial aid applications or calculations.
If the kiddo lives with the mom only and files the fafsa, she should only include her mom’s income and assets…and any child or spousal support her dad provides. The dad’s income and assets will not be listed on the FAGSA because he is not the custodial parent…and the parents are separated.
BUT to the OP…you very likely will be selected for verification because the tax documents you submit will not align with your fafsa income for your mom only. This isn’t an issue as long as you can document your custodial parent income and assets…AND your non-custodial parent income and assets. This documentation may be requested by your colleges.
For FAFSA purposes, your custodial parent only will be considered…with spousal and child support. This is what will be used to calculate your FAFSA EFC.
BUT if you apply to any school requiring non-custodial parent information, your other parent’s income and assets might very well be required.
@ccdd14 There is no such thing as a ‘child deduction’. There are itemized deductions and there are personal exemptions and there is the child tax credit.