<p>Ok we are finally getting round to entering numbers in FAFSA (hits husband with big stick) and I have a question. If we have checks outstanding that have not cleared the bank yet (we have a few things not cleared yet - had a dentist visit today & paid them, mailed the mortgage etc) is it OK to show the bank balance reduced by these amounts? i.e. show what is on our check ledger. Or do show the actual physical balance of the day (by going to the bank & getting a statement for today?) even though that money is not legally available to us. In which case am I better waiting till the major ones clear?</p>
<p>I had the same situation; I used the current bank balance (without the outstanding checks reducing the amount). I just felt it was better to use that number, in case documentation would be required later.</p>
<p>Whatever number you use, just remember that if you are audited,and have to come up with the "proof", it isn't necessarily going to happen next month or so. It may occur years later. So set up a file, with your proof right there because you may not remember all of these things that are so fresh and real right now. I say that because I becoming like that Blue Fish in "Sharks Tale". After 2 kids with 3 more to go in all of this, I can't keep any number or situation straight.</p>
<p>swimcatsmom</p>
<p>Here is what I did...</p>
<p>I took it literally and entered the full amount of money I had in my checking account at the exact time I was filling out my FAFSA.</p>
<p>Then, I went to the little online banking option thingy my bank provides, and printed out the exact proof of what my exact bank balance was on the exact day I filled out the FAFSA.</p>
<p>Then, I added my little print out to my file of copies of my W-2 and all of that. </p>
<p>So, OP. Do not try to over intellectualize your bank balance. The bank tellers don't, so why should you? Just be literal and make a little print out for your records and have that be it.</p>
<p>I think it's fine to subtract outstanding checks outside the norm of day-to-day expenses -- if you have $4000 in your bank balance but you just wrote a check for $3000 and it hasn't cleared yet ... the reality is that you can't go write another $3000 check just because your bank balance shows more. I was married to a guy that thought that his bank balance was whatever the bank said it was, and he has paid a lot of money in bounced check charges over the years. I think that the bank balance is what my checkbook ledger says it is, at least if that amount is less than what the bank says they have..... and guess what? No bounced checks.</p>
<p>
[quote]
I think that the bank balance is what my checkbook ledger says it is, at least if that amount is less than what the bank says they have..... and guess what? No bounced checks.
[/quote]
</p>
<p>There 'ya go, calmom.</p>
<p>I agree. the money is out of your possession when you write the check.</p>
<p>Thanks everyone for the input - even though it is all somewhat contradictory ;). I have certainly always considered the money in my bank to be what I have on my ledger (or computer nowadays) because once I have written the check I consider it to be no longer available to me. But I do have that concern that if I am selected for verification they may think I am trying to pull a fast one if I show it that way on FAFSA. (which I am not).</p>
<p>I think either way is okay, whichever yields a lower number for you. It is like cash basis or accrual basis accounting, sort of. Either is acceptable.</p>
<p>For proof later, either make a print out of your online bank balance, or a photocopy of your handwritten check register, depending on which number you use. Keep that as proof of where the number came from.</p>
<p>FWIW, I have never been asked for bank records when selected for verification -- all they wanted to see was the tax returns. I suppose they might have wanted to see bank records if there was something unusual about the bank balance, but they usually don't go that far. </p>
<p>I do think the "cash on hand" question is a little silly, because we all have a fluctuating balance and regular cash flow, in and out, to deal with ordinary expenses. I have more money in the bank the day before I pay the mortgage than the day after, but that money will be replaced when the next paycheck is deposited -- and for most people the regular inflow/outflow is fairly predictable. Some banks report an "average daily balance" and perhaps technically, at least for the checking account, it would make more sense to report that figure than the particular balance for any given day.</p>
<p>On the other hand, I have learned that the percentage taking from parental assets is too small for me to stress that much over.</p>
<p>I seriously don't think they would ever request verification of a bank balance for a specific date in time, it is a fluctuating asset. The best you can do is your "average daily balance" as a previous poster suggested.</p>
<p>Thank you! I guess i am being a bit anal about this!</p>
<p>I print the online bank stmt and make a copy of the check register, which shows the checks outstanding. Then I enter the amount in my check register.</p>
<p>Does any one have any clue how long to keep this stuff?? Now that I am onto DD #3 I am not sure I could recreate anything mentally ;) How long can they audit you? Any one ever seen any info on this?</p>
<p>Yeah, we just entered the money our ledger had for that day, but I certainly didn't think about printing out anything official as "proof". Our balance doesn't fluctuate by thousands or anything. If someone would look they would see a higher balance when our work checks are deposited, and then they would see that dwindle when the bills are paid - usually at least twice a month. The same routine goes on year around. If it's just a matter of a few hundred $$ I wouldn't worry about it. I would think it's the tax returns or the big discrepencies they would be interested in.</p>
<p>I bet there is an amazing range of people who worry about having it down to the last correct $ and the people who pick a number out of a hat so to speak. If you're on this board hopefully you're pretty wise and swimmom I think you are!!!</p>
<p>
[quote]
Does any one have any clue how long to keep this stuff??
[/quote]
There is no statute of limitations for tax fraud. If you were investigated for financial aid fraud, income tax fraud would surely be bundled with it. So, forever? Or until let's just say you were beyond the reach of the Dept. of Justice?</p>
<p>We have had reason to have to go into my husband's grandfather's financial files (wow, meticulously kept) for some things regarding property. This was on behalf of his mother who is 80 years old. So forever is the answer if you have anything to lose.</p>
<p>Are you sure that there is no SOL for fraud? I've been told by all my accountants and tax lawyer friends that you only need to keep the records for 7 years and then you can toss them. I would also assume that there is a statute of limitations for financial aid fraud, and that's on the FAFSA. Institutional moneys would likely be covered under a contract statute of limitations, which is usually 3-6 years depending on jurisdiction.</p>
<p>Besides, I can't imagine that a couple of hundred dollars, or even a couple of thousand, would trigger a fraud investigation. And if you explained the discrepancy (i.e. deducting outstanding checks), that would negate intent, a necessary aspect of fraud.</p>
<p>
[quote]
Are you sure that there is no SOL for fraud?
[/quote]
Yeah, I'm sure. I would never throw anything away relating to taxes unless I was moving to hospice (or Oregon). You can assume whatever you want.</p>
<p>We too were told by several sources that 7 years was the requirement for keeping tax info.</p>
<p>Let's say you have not yet gotten your tax refund. Do you consider that "savings?"</p>