<p>So Swimcatsmom…would the OP’s parents have to be eligible to file a 1040EZ or 1040A (they file taxes jointly even though they are separated) to be eligible for the auto $0 or the simplified needs test?</p>
<p>In other words…if they itemize or whatever (which seems likely…why else would they be filing a joint return??)…then they would have to do a long form 1040, correct?</p>
<p>Perhaps the OP would not be eligible for these options even though his mom earns no money and she is the custodial parent…because the two parents continue to file a joint return AND it might be a long form 1040 required.</p>
<p>This doesn’t directly bear on the OP or on Haematic, but we were able to select “eligible to file a 1040A” because we met the guidelines. In actual fact, though, we filed a 1040 that year. We don’t have enough itemized deductions to get above the standard deduction in the federal formula, so we use the standard deduction – but our state taxes are weird here, and we are better off with the itemized deductions. So to the state we file the 1040 and use our itemized deductions, but with the IRS we file the 1040, but take the standard deduction.</p>
<p>Anyway, we have to file a 1040 for state tax reasons, but not for federal. It it weren’t for the state taxes we could file a 1040A.</p>
<p>Not that it matters what we check on the FAFSA in terms of eligibility anyway… our assets are way, way below the protected amounts. I only bring it up as one of the peculiar situations that can arise where a person files a 1040 but would be eligible to file a 1040A.</p>
<p>Okay, here goes … if the parents are separated, and if they file a joint return, the income, taxes, and AGI attributed to the mom are all that is reported. If verified, however, the student would have to send the joint return & dad’s W2s to prove that the income is all actually from him & none from mom.</p>
<p>Since they are married, all assets are half his/half hers unless the legal separation agreement stipulates otherwise. Mom’s share of the assets would be reported (although it may be irrelevant if she can qualify as a dislocated worker).</p>
<p>The money paid for mom by dad is reported as other untaxed income FOR MOM (not the student - money paid to the household in the case of a dependent student is attributed to the parent rather than the student). Any bills dad pays IN MOM’S NAME must be tallied up & reported as other untaxed income. If mom’s name is on the lease, the amount of the rent dad pays is mom’s other untaxed income. Same with car payment, car insurance, credit cards, utilities, etc … if mom’s name is on those bills, the money dad pays for them is mom’s other untaxed income. If dad has his name on everything & pays for everything … the school may ask for proof. If selected for verification, the school is required to verify other untaxed income (federal regulation) … if no money is coming into the household, the school will have to collect & retain information on how the family survives. They may make adjustments to allowances for living expenses in the student budget (removing them from the budget) if they deem it appropriate.</p>
<p>swimcatsmom: What part isn’t true? Of course if you do file a 1040, you are likely doing so for one of the advantages that would make you ineligible to file a 1040A but that doesn’t mean it applies to everyone. If one has a 0 EFC, there are probably other things that will have to be verified as well anyway.</p>
<p>Lots of people file 1040 even though they “could” file 1040A/EZ (from what I can tell, some tax services only prepare using 1040). If they CAN’T, though, they CAN’T.</p>
<p>I filled out the new online FAFSA a little over a week ago. This year, it didn’t directly ask about eligibility. It just asked what form I filed, followed by a series of questions about my situation. I guess they decided this was easier than explaining the rules to FAFSA filers.</p>