<p>So I guess this kind of questions get asked a lot, but heres another one with another situation. </p>
<p>I worked for some government tutoring program last year, and my parents lost a lot of money on some foreign currency exchange. This means we've got some forms that may not play well with the 1040a, the 1099B and the 1099-MISC. </p>
<p>I know this is a question for our tax guy, but I'm just too anxious too wait for my w2s and all that. Does anyone know if those two forms can be somehow filed under a 1040a form somehow? I mean forex losses ain't exactly income, and my independent contractor income is no biggie as long as I report it right? I made over 5000 last year, and that'll add a few hundred to my EFC, and my parents' income according to last year's calculator will apparently add a few hundred as well, even though they only made about 26000 total. </p>
<p>So to sum it up, I made 5000, my parents made 26000, we're really poor, and I really want a EFC of 0. Is it possible to file the losses and non employee income under the 1040a somehow so I can get that EFC of 0?</p>
<p>YES!!! That's great news! I have heard once from some forex forum that they could simply file it under other incomes(losses) or something, while they'd lose out on some tax credits it's probably a lot less than what we'd gain with that 0 EFC. </p>
<p>So even if I file a 1040 it won't matter? Are you very sure about this? I guess I could go experiment with FAFSA corrections before I actually file my tax returns.</p>
<p>Your parent's were playing with foreign currencies on an income of $26K? Or are you saying their net income is $26K after losses? If so, no way they can use the ez form.</p>
<p>Their income is literately 26k, no losses included. It used to be higher, but my mom lost her job. I guess my dad just got really into it, thought he could win a lot of money, but he was wrong. :( </p>
<p>We could afford it because we actually had like over 50k of savings. I think they lost like 4 grand, is that too much for 1040a? I mean...come on, theres only that one number of losses on the 1099-B, would the IRS really care that much if we report it on a simplified tax form as opposed to a schedule D?</p>
<p>When you said they lost a lot of money I was thinking maybe a big number. I really can't answer your question but with that income they could file the EZ form but may not get tax credit for the loss. Have you run the calculators? On your family's income the EFC should be very near zero if not zero anyway and if you're a good student, quite a few top schools now offer free rides to those with family income under $60K.</p>
<p>Some of the requirements for an auto 0 is:
-receiving free or reduced lunch
-made under 30,000
-be able to file a 1040a/ez
And I wanting to say there are a few other things as well.</p>
<p>Auto 0 was talked about on this thread maybe there is some useful info on it for you.</p>
<p>If the 1099 is required to be reported on a 1040 you probably do not have a choice. We had a State tax refund of <$100 a couple of years ago that meant we had to file a 1040 - there was no way around it. </p>
<p>How long go did your Mom lose her job? If she qualifies as a 'dislocated' worker that (along with the income <$30k) is a qualifier for the automatic 0 EFC even if they cannot file a 1040aez.</p>
<p>
[quote]
85. Dislocated Worker. As of today are either of your parents a dislocated worker?</p>
<p>In general, a person is considered a dislocated worker if he or she</p>
<pre><code>* is receiving unemployment benefits due to being laid off or losing a job and is unlikely to return to a previous occupation;
has been laid off or received a lay-off notice from their job;
was self-employed but is now unemployed due to economic conditions or natural disaster; or
is a displaced homemaker. A displaced homemaker is generally a person who: previously provided unpaid services to the family (e.g., a stay-at-home mom or dad), is no longer supported by the husband or wife, is unemployed or underemployed and is having trouble finding or upgrading employment.
</code></pre>
<p>If a person quits work, generally they are not considered a dislocated worker even if, for example, the person is receiving unemployment benefits.</p>
<p>Answer "Yes" to Question 85 if your parent is a dislocated worker.</p>
<p>Answer "No" to Question 85 if your parent is not a dislocated worker.
<p>Okay after some research it all seems to confirm the above, that I pretty much absolutely have to file a 1040 for a 1099-B. My mom quit her job due to a work injury, now she's looking for a job and can't find one, so I don't think she counts as a dislocated worker. </p>
<p>I guess I'll just tough it out and take that 700-1000 EFC since theres no other choice. Thanks for all the help guys!</p>
<p>P.S. I'm going to UCSD, no free ride there XD</p>