Auto zero EFC and assets

[gremom]

D will be sophomore fall 2015 so this is my second time for FAFSA though process is still a tad confusing.

W2 earnings 15K. Have Passive Activity and Net Operating Loss carryovers from sale of property in 2013 totaling 43K. Directly converted $43K of traditional IRA to Roth IRA to take advantage of losses to result in zero taxes owed on IRA conversion. All this results in AGI of 18K with 30K itemized deductions (high medical costs) and federal total taxes of about $25.00. Had to file 1040 because of carryovers.

D received Free Lunch Jan to May 2014. She was put on waitlist fall 2014 for federal work-study, which just cleared, and she will interview when she returns to school next week. I am hoping for Pell for 2015-2016. I think I qualify for auto zero EFC based on 18K AGI (<24K) and Free Lunch even though I can’t file 1040A.

I started doing renewal FAFSA. I put in income. All it asks for is is AGI so the whole loss/IRA distribution can’t be a factor. It put in qualified for Free Lunch program (I thought this would be a student question, not a parent question since student got FrL, but I guess D got it because of my income so thats why it is a parent question) Anyway, it still wanted me to list assets. I thought those questions would be skipped since they came after FL and Income qualification question.

Am I doing something wrong?

[thumper1]

Read this below. Maybe this is why. Are you in one of these states?

State Restrictions on Simplified Versions of the FAFSA

Even if the student qualifies for the simplified needs test or auto-zero EFC, the student might not be able to skip all of the asset questions, depending on the student’s state of legal residence. The FAFSA is used to apply not just for federal student aid, but also for financial aid from the student’s state. Fourteen states and the District of Columbia do not allow students who qualify for the simplified needs test or auto-zero EFC to skip the questions. These states are Colorado, District of Columbia, Georgia, Hawaii, Illinois, Minnesota, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Vermont, Washington, Wisconsin and Wyoming. The answers to these questions, however, will not affect the student’s eligibility for federal student aid. A student who qualifies for auto-zero EFC will still have a zero EFC for federal student aid purposes even if the student’s state does not allow the student to skip some of the FAFSA questions.

[gremom]

I’m in Georgia which is one of the states. I didn’t even realize that GA offers financial aid, other than the HOPE Scholarship (not the tax credit), which is academically based and maintained with no regard for financials. So I’ll gather my asset info and complete the federally unnecessary questions to put D in line for Pell and continued Fed W-S. Thanks!.