I got a financial aid package from a school that meets need that seemed way to low to be right. After my second call to their financial aid office they looked my 2014 tax return and told me the my adjusted gross income was significantly higher on the CSS profile. They will review the aid package once I update the CSS Profile, but I’m not sure what I put in the wrong place. This is the first time I’ve filled out a CSS Profile, and I did use the directions (or so I thought). What are good resources for me to use to figure out what I did wrong?
Review the Profile and make sure there were no typos. However, most colleges will calculate family income by adding back in deductions, retirement contributions, etc. into the AGI.
Do you have a home business? All/many of those deductions get added back in.
Yes, if you take any business deductions, then deductions get added back in.
how much was the difference in income? $10k? more? less?
Was the difference the amount that you contributed to a retirement account?
Did you receive a tax return last spring?
Did you enter cents rather than just whole dollars?
Thank you all for your help, I really appreciate it. The school reports they meet 100% of a student’s demonstrated financial need, but I can’t see how we can possibly pay their EFC. FASFA has our EFC much much less. To answer the above questions:
@purpleacorn : Is there anyway to know what elements each school adds in or subtracts out of 1040 tax forms?
@“Erin’s Dad” : No home business and not self-employed, state employee.
@mom2collegekids : Our adjusted gross income was $75K and school calculated it over 20% higher. Retirement funding was a little over $5K (we change because of plan) and we did get a tax refund.
@arabrab : Doesn’t look like it.
I’m going through it again scrutinizing each line using my 2014 taxes and their guide. But since I had to turn it in Nov 1st (SCEA), I had to use 2014 taxes, estimating 2015 taxes and other numbers. I do have a question reporting 529’s. It’s the kind parents count in their assets, not the student. I reported the entire amount of the 529 (includes siblings), but I can’t use all of it on one child… not sure how that is handled. Reviewing it now…
How much is in the 529? 5.6% of that amount would be included in your family contribution. Of course that is for FAFSA purposes. For a SCEA, you used the Profile.
Does the SCEA school use home equity? Many do. The FAFSA does not consider the equity on your primary residence, but the Profile does. Do you have substantial home equity?
I thought parent owner of a 529 could change the beneficiary…so it would be possible for you to use all of it on one kid.
But neither the home equity or 529 would be income…they would be assets.
Are you saying your family contribution was 20%'higher than the FAFSA calculation? Or the income line?
Did you run the net price calculator for this school? What does THAT say?
Any chance you entered student income in with your income in the parent section?
And lastly…one thing that absolutely gets added in is your contributions to your retirement accounts. How much did you contribute to your 401k, 403b, IRA, TSA accounts in 2015 pretax? Those amounts are added back into your income. But that would be for FAFSA also.
The good news…this is SCEA. Your student is not having to make a matriculation decision right now. Make sure other applications are all sent…just in case this calculation on the part of,the SCEA school is accurate.
Last thought…are you a state employee who contributes to a required state pension plan? Wondering if that amount was included as income?
Our EFC changed significantly based on the pension plan/retirement deductions being added back as income plus yes having 529’s for 2 kids is treated as a parental asset. To get the “new” tax credit you also need to pay at least $4000 in cash money each year not from 529s to qualify. They don’t make this easy and seem to penalize you for saving.