<p>I'm 23 but I'm turning 24 during the award year so I'm considered an independent. However I live with my parents and have no income, therefor I have no taxes. I guess it's safe to say I don't have a job because I help out at my parents' restaurant and I don't get paid wage, if anything I just receive cash from tips and a cc under my name is paid with the help of my parents. Here are my questions:</p>
<p>Even though I live with my family I have to put 1 under household size? Otherwise I get this error "You said that the student is not married, and the student does not have children or legal dependents, but you reported that the student's number of family members is greater than one. Change one of the following answers."</p>
<p>Do I put $0 under income? If not how am I to determine the amount I should put in under income if I didn't file any kind of tax form or w-2?</p>
<p>Under "untaxed income" there's line for "Money received or paid on your behalf", is this where I would put how much I earn through tips or how much my parents paid for my cc bill?</p>
<p>In this case should I fill out my parents tax information anyway even though I'm considered independent? Would that do anything?</p>
<p>And although the FAFSA will let you, colleges have their own forms. Most require independent student certifications (at least the ones I applied to did).</p>
<p>Independence for FAFSA and independence for federal taxes are two different things. It is very common for students to be independent for one but not for the other.</p>
<p>@happymom - I know that, I apologize for not being clearer in my statement. What I meant to tell the OP is that when he/she fills out the FAFSA as an independent, it will typically give a low EFC and a higher PELL based on her income. But this can be misleading because some (not all) colleges have their own forms. So the OP may think they are independent and will qualify for more aid, but then find out otherwise.</p>
<p>If the student is independent for FAFSA purposes, the Pell will be awarded based on the student’s EFC, and the FAFSA formula to determine this. The schools can adjust INSTITUTIONAL aid but they cannot use their own forms to adjust federally funded aid (unless they are considering a special circumstances request).</p>
<p>First, you should be reporting your tips, because they are taxable income. You are working “under the table” at the family business. Those tips are earned income, and are subject to self-employment taxes.</p>
<p>Money paid on your behalf would be your credit card bills plus any other money used to support you:</p>
<p>your share of the groceries
your share of the rent and untilities
your medical and dental bills
anything else someone else is paying for on your behalf.</p>
<p>This is an area where the school’s policies come into play. Here is what the financial aid manual says: In-kind support is other than money, for example, friends or relatives giving the student food or allowing him to live with them rent-free. That support isn’t included as untaxed income, though you may use professional judgment (e.g., by reducing the cost of attendance or increasing income) with students who receive such in-kind support … If the student is living with someone who is paying living expenses, it can be difficult to determine whether the support is cash support or in-kind support. The basic rule is: if someone pays a cost the student is obligated to pay, the amount counts as cash support.</p>
<p>“Obligated to pay” is the key. The interpretation used where I have worked is that any bills IN THE STUDENT’S NAME that are paid by someone else would be reported as money paid on your behalf. We did not ask for the value of groceries, of rent paid for a domicile for which the student’s name was not on the lease, etc. Some schools will reduce the COA for a student who lives with his parents (I have never done that). I suppose some will add the in-kind support to income, so it would be good to ask what the school expects you to do.</p>