<p>Ok so I checked "Will file" in fafsa for my parents' income tax returns and did the necessary calculations with the 1040A form and W-2 form. However, I had not done all the calculations in the 1040A file and after submitting the fafsa form few days ago I did calculations for the 1040A today. Since I hurried with the fafsa I failed to realize that my parents earned so little that they actually weren't even required to fill the tax return. The instructions on 1040A do say that they can still file the tax return but should we or not ? After all it is of no use since they don't owe any tax or even eligible for any expected returns!!</p>
<p>They did not meet the income requirements to file or they simply had no tax liability? Nothing witheld through payroll deductions and they’re not eligible for the Earned Income Credit? If you’re sure they’re not required to file, you can update the status to “will not file” on your FAFSA after it processes and then resubmit.</p>
<p>Have you done your parents’ taxes other years? I would never expect my teen to be able to figure out my taxes, when it is tough enough just for myself, after years and years of this experience. I would let your parents figure this out for themselves, or, have another trusted adult who knows about taxes help them.</p>
<p>Achilles - Your parents lilely should file the form anyways. People with low income can get money back liked the Earned Income Credit. FAFSA wont make you file a return, but the IRS will, if they think it will get them some $$. Plus, if your parents had any sort of job, that job would take out fed and state taxes. The way to get this money back is by filing state and fed tax forms.</p>