<p>Last year I won a car on TV and this year I will be 1099'd by the show and the car's value will be added onto our taxable income resulting in a tax burden for which we have prepared. My question is, will our EFC increase this year because it will look like we made more money on our taxes?</p>
<p>Er, yes. You did get a car valued at so much. If you sold it at a loss, that could reduce your taxes maybe or there could be some adjustment maybe, but the fact of the matter is that you got a car valued at $X last year. You will be taxed on the value of the car, and yes, your EFC will take that into consideration too.</p>
<p>If the car is sold in 2013 for less than the 2012 1099 amount the loss will not reduce 2013 taxes. A loss on a personal asset is not deductible.</p>
<p>Your EFC will increase but contact finaid at the school. They may make some kind of adjustment since it’s a one-time increase and not a continuing increase. Doesn’t hurt to try.</p>
<p>Thanks, all!</p>
<p>I will contact financial aid at my S school if this affects the EFC enough to warrant. His tuition will be the only one affected because he is at a private school exceeding his EFC.</p>
<p>Ironically, we intended to sell the car and use the money for college tuition since we have two in college, but the bank allowed us to take out a 5 year loan on the car instead, so we did that because it was cheaper than taking out a Parent Plus Loan and we’ll have it paid off in 5 years. Shortly thereafter one of our other cars was totaled so…it all happens for a reason : ) Can’t complain at all.</p>
<p>Was it Wheel of Fortune? It must have been quite fun!</p>
<p>No, Let’s Make a Deal. It was a blast and I got to meet Wayne Brady who is one of my favorite all around actors, so definitely wonderful!</p>
<p>I plan to get on Wheel though someday. My mom was a big winner back in 1978 when Chuck Woolery was host.</p>
<p>Did your mom win a Dalmation??? That would be awesome! :)</p>
<p>Wayne Brady is so talented - I loved watching What’s My Line and listening to him sing.</p>
<p>No, but she won a life-sized ceramic cocker spaniel : )</p>
<p>I hate to say it, but I think I’d rather declare that cocker spaniel on financial aid applications than the car!</p>
<p>Ha ha, that wasn’t all she won…just one of the few things we still have from her show. But, yes, my prize was worth more than all hers combined.</p>