<p>What’s on the tax returns does not always translate to what FAFSA uses for income, and certainly not PROFILE if you are applying to schools that use that. For one, there is no negative income. You start with zero. Certain deductions get added BACK into income, such as HSAs, 401K contributions. Depreciation may not be recognized either You sell a $200K piece of property for $100K, well, you lost $100K, but, uh, the way FAFSA and other financial aid calculators my e more interested in the $100k you get. </p>
<p>If your mother’s income is below a certain threshold even with the add ins, (about $20K, I think, you have to look it up) and you meet other conditions as well, assets may not be taken into account and you get an auto zero, but if you don’t so qualify, the calculators do also take assets over a personal protection allowance (which is small for a single parent) into account. So run the calculators but also read over what is added back into income, to see what your EFC is going to be.</p>
<p>Also, if you are applying to PROFILE schools that want NCP info, you need to apply for a waiver, asking them to take your dad out of your life for fin aid purposes They will want to know how uninvolved in your life he is, like does the school have him on file, are you on his insurance, has he paid child support. Depends upon the individual school if they will give you a pass or not.</p>
<p>You need to get the definitions and rules for how things work . For example, custodial parent , something that seems so clear, is often times not, as FAFSA’s definition does not mesh with the IRS or divorce decree or most other such defintion. So it’s not quite so simple that the income on the tax returns is always used. The school will also want to see what you lived on if you have a zero income. You can’t live on air. YOu need to show that you did draw on assets and had no actual income, which is possible. My friend did that for years. Income, practically nothing, but she borrowed and drew on assets to get by. So it’s possible, but her kids’ schools wanted proof. She had to show them where she was getting her money to live that past year.</p>