<p>When in doubt, and when this is flagged, college fin aid officers would ask. As with any number of things, yes, the student/family could lie, but the definition is right there. No question of this arises if the parents are filing separate returns, not married, filing separately but as separate households. However, the IRS has more specific requirements in order for families to be able to do this, name the state itself has to recognize the couple as separated. FAFSA is more lenient in that those familes who live in states that do not recognize separation, can still file as separated if the “living separate lives” holds up. </p>
<p>There are married couples who live in two domiciles who are separated for tax purposes. Can make a huge difference in tax bills If they truly meet the definition of separated, for tax purposes and are passing muster that way, even though they are sharing their lives other than having another place to live (which might not even be used as much as would had they truly been living separate lives). Theoretically, those families should be filing as married on FAFSA, but I know a number who do not. </p>
<p>If two people are legal parents of the student, regardless of legal status, if they are living together than they file together on FAFSA. That is clear.</p>
<p>FAFSA does use the IRS tax forms to check on certain thing and a mismatch will likely set off a verification questionnaire. But some things do not have to mesh, and the separated definition is one thing that does not Neither does the issue of who declares the student as a dependent. But who are considered dependents in a household can come down to to who is or can be claimed on the federal tax forms.</p>
<p>I have personally seen a lot of Asian families, just my personal observation, as I know a number of Asian families, who have one parent living/working overseas, but they are married and consider themselves as such. But for tax purposes, it’s beneficial for them to file as fully separated, not married filing separately. This often allows the US living parent to be HOH and actually have low income benefits in many scenarios IF the parent living overseas is not a citizen or permanent resident, which I have seen as the case in some situations, he does not file US taxes, and does not come into the picture except in terms of support money given in a lot of situations including FAFSA. Absolutely many of them would file as separated parents for FAFSA since the tax forms will back this up with usually the mom filing HOH separated. No flag there since the only issue is really what the family privately considers itself. And in some cases, the members don’t quite know, as there have been situations that have arisen where the out of country parent has another family tucked away. </p>