<p>I have been trying to use the CSS Profile calculator to estimate our EFC and there seem to be real errors...</p>
<p>just for example--putting in the #s for income, wages, etc etc----when I use the breakdown directly from my tax forms--it is calculating the number as 15k higher than the tax returns--
so there has to be something missing in the calculation</p>
<p>for the equity in the house--we are upside down and owe more than its worth right now--the formula won't take a negative number--in fact it makes it postive equity in the calculation --the only other option is to report 0...</p>
<p>In order to use the right AGI--I just put that into the calculator and then the problem was the calculator did't acct for FICA.</p>
<p>Anyone have any ideas about this...I know that last year there were calculation problems and there was a work around for FAFSA. I am really dissappointed that something so important has issues from year to year...</p>
<p>Has anyone just had their accountant to fill this thing out--?/to figure the corrections and work around to correctly report it?
---In this case we will have to submit the tax forms and appeal every school's award since it's calculations are wrong off the bat....
I realize the Profile doesn't go live til Oct, and the FAFSA in Jan-- I am just trying to figure out where # is/in the ballpark is right now...</p>
<p>You won’t find an accurate calculator online that will give you a college’s Profile EFC. The reason is that each college will use the numbers collected on the Profile form according to their own algorithm. Some cap home equity to 110% of net income, others discard home equity completely, for example. There’s no one-size-fits-all Profile EFC in the way that there’s a one-size-fits-all FAFSA EFC.</p>
<p>Your best bet is to see if the colleges you’re interested in have their own online EFC calculator (many of the top colleges do).</p>
<p>I guess what really bothers me is this Profile online thing is a mess–doesn’t count for negeative equity and is calculating AGI etc wrong, left FICA blank etc…</p>
<p>I just tried another online calculator–because I have heard its pretty good for estimates–
while the EFC certainly is insitutionally based–that calculator did ask directly for AGI etc correctly </p>
<p>I am suspicious of the Profile and the AGI etc…</p>
<p>I think it doesn’t account for negative equity because FA doesn’t account for debt in general (loans, credit card, etc.). Could be wrong about this, so input is welcome.</p>
<p>Entomom is correct, negative equity is not accounted for. Debt is not a factor. And what you think your AGI is and what Profile schools think it is can vary greatly.</p>
<p>I’m confused. AGI means adjusted gross income which means your income after deductions for retirement, which would include the FICA deduction. The calculator doesn’t account for FICA, you do.</p>
<p>Don’t know about the CSS calculator but on FAFSA the FICA amounts are calculated using the figures entered for money earned from work, not from the AGI (as the AGI can include other income that does not attract FICA).</p>
<p>
The AGI from the tax return does not account for FICA except for self employed people who can deduct half of self employment taxes. Other than the latter FICA taxes are not tax deductable so do not reduce the AGI.</p>
<p>Yes our returns include issues for self employment and corporate status etc…</p>
<p>I know our AGI is correct on our returns etc–I think the profile and fafsa do not account for all possibilities, deductions, etc etc wich is why they it takes a live person with experience to really hand adjust these things after the computer misses it.</p>
<p>I don’t think the FAFSA EFC is hand adjusted by a live person. As far as I know it is calculated by a computer which uses the EFC formula and the the data you enter into FAFSA.</p>
<p>FAFSA does not take into account all possible deductions or possibilities. That is why they allow special circumstances adjustments for situations that warrant them such as high medical bills etc. But FICA taxes and state taxes are already accounted for in the EFC formula. However they are not the actual taxes you paid, but allowances based on the financial data you provide and tables within the EFC formula. FICA, for instance, is based on the income from work figure entered in FAFSA multiplied by the % allowed in the formula.</p>
<p>For the self employed and business owners, you really need to understand that most Profile schools will not allow many of the deductions the IRS does. And they look at most small businesses as assets and assign a value to them.</p>
<p>^^I believe the above is a fairly accurate representation. Our Profile amount calculates with the on-line calculators at almost double of our EFC…it happens to people with businesses, investment income, etc. etc. Scared the heck out of me although somehow all the college packages came back with a fairly similar family contribution somehow. (FAFSA schools that don’t meet need + CCS colleges) FAFSA is alittle more straightforward in that regard.</p>
<p>Swimcatsmom is correct … no hand adjustments are or can be made to elements for FAFSA. Some adjustments might be made if a special circumstances review is requested, but those are (as the name implies) special situations & they are governed by strict federal guidelines.</p>
<p>FAFSA does ask that. Not sure profile does though. For some reason I think they don’t. Don’t know why I think that as I have never done a profile. Maybe it has been mentioned on CC before?.</p>
I tried to run the Cornell estimator and got an EFC of about 2X the fafsa EFC as well. They seem to count the entire value of the rental properties we own in the net worth, which is patently absurd, since the banks own at least 40% of them. How can that be counted as something we could theoretically or realistically spend? Seems to me like they just want excuses to say no.</p>
<p>Determine a price for the rentals as if you had to sell them quickly. Find out comparables and how long they have been on the market and adjust accordingly for your market conditions. Subtact what is owed on them. That is the value of the asset. Keep the info in a folder if you ever have to justify your calculations.</p>
<p>One thing about real esatae assets…it seems the calculator does not account for negative equity–meaning if your property is upside down due to the downturn…you have to enter a 0 instead…</p>