<p>D#2 returned from her overseas exchange in July last year, and was unable to find a job for the month prior to freshman orientation. She did receive an honorarium, a few hundred dollars for assisting in a summer camp for kids. In the fall she did finally make money from her work study job. </p>
<p>So, no withholding for taxes either state or federal.No tax payment needed. I'm assuming we'll count the honorarium as income. Normally, we wouldn't have her file at all. But does she need to file for the sake of FAFSA? The questions do ask about income, and we are answering as if she had filed, answers from appropriate lines and so on. </p>
<p>Is it ok to answer 'as if filed' though filing itself is unnecessary?</p>
<p>If your daughter is not required by the IRS to file taxes, she does not have to file just because she is filling out a FAFSA. When you get to filing status, you will indicate "will not file" and that is that. Your daughter still needs to report her income on the FAFSA, but no need to do the IRS taxes if not required by the IRS.</p>
<p>My D has no earnings at all, and most of her schools asked for a Non-Filer Statement from her. The schools should let you know, but you might want to call to be sure. Regardless, she doesn't need to file.</p>
<p>My D also did not make enough to require filing. We entered her income on FAFSA and used "will not file" for status. The verification forms we've received had a place for an explanation (non-filer statement) which was simply a matter of entering the reason (income does not meet level required for tax filing). Not a problem at all...although she wishes she'd made enough to file!</p>
<p>Yes, I wish my D had made enough to file as well! </p>
<p>Thanks for the comments. I guess I didn't look closely enough to find 'will not file' as a status. This is my 6th year of the FAFSA, and just hadn't encountered such a lack of income previously! Had my D sit down and fill it out, as she's home for spring break, so maybe I need to do more than just look over her shoulder. Felt very good to have her take that responsibility for a change! </p>
<p>Her school is rather amazingly easy now, no form for continuing students, other than the FAFSA.</p>