<p>I have a 21 year old who is going to go back to school. She could reside at a different address where she will be going. I was wondering if I'd be better off letting her go completely on her own, where we won't claim her on taxes. Would that make it better for her on the FAFSA, maybe cheaper. And if I do that, that probably means that I can't put her back on my insurance for health insurance coverage, right. I do have a son that will be a college sophomore next year too. Would it be better to keep them both as dependents. Does anyone understand what I'm asking here? I'm sorry if I'm not making sense, but I figured someone out here might just know what I'm trying to say.</p>
<p>pb&j--the FAFSA does not care whether you declare her or not as far as FAFSA independence. As she is under 24, their cutoff age, she will be considered dependent and subject to your financial support for college unless she is married, supporting dependent(s) of her own, in the armed forces or a veteran, was a ward of the court, or has a bachelor's degree already. if none of those are true, I'd hesitate to take her off your taxes if it will mean her losing health insurance. Additionally, your family EFC will be divided in half between your two children, so each might, hopefully, get more aid on account of tht.</p>
<p>thanks, a friend had mentioned that they were going to do this with their child and I never heard of it before and I was wondering how that would work. Your response was a really big help. Thank you.</p>
<p>You're quite welcome! A lot of people think they can do this, but eventually find out it's not acceptable to FAFSA (you might hear about them planning it but not about the negative outcome.)</p>
<p>Best wishes to you and your kids!</p>
<p>wow- you mean if a kid is 21 and living on their own and self-supporting, FAFSA still will consider them as dependent? that just seems illogical to me</p>
<p>Yup.</p>
<p>Otherwise too easy for a 21 year old with well-off parents to move out, and then claim "independence" in order to have others foot the bill for his college.</p>
<p>Yes - my son is 20 and dropped out of school for a year and a half. He has seen the light (as in realised it is pretty hard to live on minimum wage) and is going back to school starting with some classes this summer - yay! And despite living in his own place and paying his own bills for a year and a half he is a dependant for FAFSA. I am ok with that - except for the part where his income for last year is penalised at 50% knocking his EFC up too high for much aid the first year. That money is long gone on rent and bills. But,in his case, the lesson learned is priceless as he is much more determined now whereas before he really had no interest.</p>
<p>As sblake says the system is set up to guard against people playing the system. One of our friends even had someone suggest to her that they put a trailer on their land and have their high schooler live there thinking it would make them independant for finaid. It does make it more difficult for those that are truly independant for reasons out of their control.</p>
<p>One tax preparation book seems to misguide some folks on this point, even recommending that parents not claim a student so the student can take tax breaks at a lower income level. The book writers didn't appear to be familiar with FAFSA rules -- just a caution to others researching this stuff.</p>
<p>Don't get confused.</p>
<p>Being claimed as a "dependent" for tax purposes has little to do with being either "dependent" or "independent" for FAFSA purposes. Totally different requirements/guidelines for the two.</p>
<p>And there's a third status that creates confusion-- the calculation of the "number of household members" that you report on FAFSA. There are yet another set of guidelines for this-- </p>
<p>So, for example, one could be considered "independent" for FAFSA purposes, yet still be claimed as a "dependent" for tax purposes, and either be included (or not) in the number of household members reported on FAFSA.</p>
<p>Three different things entirely, and often confused in discussions.</p>
<p>Sblake, so if you are a grad student what are you then under all those things you listed above? Independent right? But can still be dependent for taxes?? But who do you list as under household other than yourself if you aren't married and have no kids?</p>
<p>I've always wonder why they say your dependent to age 24. Strange, since I thought most people graduated with an undergrad degree around 22- 23 years of age.</p>
<p>If you have completed your first undergraduate degree, then yes, you will be considered an independent student as far as the FAFSA is concerned (to be considered dependent, you can be any age as long as the tax payer can prove that they have provided for at least half of your support, you lived half time with them and you cannot be claimed as a dependent on anyone else's taxes).</p>
<p>However, if you plan on going to professional school , specifically law or med school, most schools will not consider you to be an independent student until you are about 27 or you can document or prove that you have not received $.01 from your family within the past 5 years.</p>
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I've always wonder why they say your dependent to age 24. Strange, since I thought most people graduated with an undergrad degree around 22- 23 years of age.
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<p>As you see from some of tehse postings, life happens and not every one takes the direct route of graduating high school and going straight through 4 years of college. Students have a break in their education (leave, work a few years and then decide to go back to college). If these life events happen and you return to college before you are 24 years of age, then you will stull be considered a dependent.</p>
<p>A 22 year old grad student would be INDEPENDENT for FAFSA, yet if there are younger siblings in UG, you may be able to include the Grad student as one of the kids in college on the UG FAFSA. The grad student can also be dependent for tax return and health insurance and residency requirements.</p>