My divorce was finalized only a few months ago. For the past few years our taxes have been filed jointly, however I only make $15k a year whereas my husband was making $120k. Now that we are divorced and I want to go back to school and apply for financial aid I am worried that our joint income from the past is going to affect my ability to get financial aid. When I file fafsa do I put the high joint income even though it’s not representative of my real financial situation?
No, on FAFSA you will only report the part of the jointly filed income that is attributable to you.
Thank you for the quick response. Is there a process for separating the income?
Process? Yes. Look at your W2 forms…
Subtraction.
Seriously – look at the income items reported on the joint return. From the wages, salaries and tips amount, take only the money that you earned. From taxable interest, take half the interest attributable to accounts that you owned jointly with your ex, all of the interest attributable to accounts that you owned solely, and none of the interest attributable to accounts in which you had no ownership interest. From investment income (dividends, capital gains, etc.), do the same thing. Repeat for any other items of income reported on the tax return.