My mom and stepdad are getting divorced so she is filing taxes separately before FASFA deadline and I need aid because she makes under 60k. But they are still going to live together because of logistics issues and his income would ruin my EFC even though he will not be contributing. Is his information required?
Since he isn’t your bio dad, I don’t think the “living together” rule applies. In the past when this has come up, the opinion has been that schools don’t expect divorcing step-parents to contribute or provide info.
Thank you. Is there a precedent for this? I haven’t seen anything on FASFA website.
Just read the FAFSA definitions very carefully and answer the questions as asked. Is your parent married? No? Then you don’t fill in anything about the former step dad whether he lives in the basement or in Texas. Are they married and living together? Unless legally separated (divorce papers filed?), they are probably still a couple. If your mother filed taxes, see what status she used (married, married filing separately, Head of Household?).
But aren’t we using last years returns? And when will divorce be finalized?
The status is of the day the FAFSA is filed. Many people will have filed tax returns with a different status in 2015 than what the status will be on the day they file in Oct 2016. If that’s the case, expect to be chosen for verification, where you will just explain the current status, and the amounts on the tax return (joint) will be separated out using the W2s.
You would only have to report his income if he was your bio dad. A non-bio (step)dad’s income doesn’t count if they reside in the same home, as long as they are in the process of getting divorced.
What would constitute process of getting a divorce? Will Op’s mom have to show proof that she has gotten a legal separation to the court or does she simply have to say “we are in the process of getting a divorce”
If it just based on custodial parent statements, what is to stop other families with stepparents to say we are in the process of getting a divorce (even if it is not true) while still living in the same home?
In most states, filing for a divorce generates the first court order and that should be enough.
If the parent says she is getting a divorce, the default is to believe her. If the file is verified, the school may request additional documentation or a signed statement - school policies may vary.
With the prior-prior FAFSA, you are using the 2015 returns, where presumably they filed jointly?
If so, your mom will need to subtract out the income from the joint return that was earned by the exhusband.
Here are the instructions from the Department of Education, scroll down to “but what if my family’s financial situation has changed?”
http://blog.ed.gov/2016/08/2-major-fafsa-changes-need-aware/
If she was a housewife in 2015 and just started working, how does that factor in?
If her numbers are too strange looking, the school will ask for explanation and verification.
She would report the amount she earned in 2015 ($0).
Her marital,status is as of the day of the FAFSA filing. Because of prior prior tax year, she would use ONLY her income from 2015, and only her share of the assets as of,the date the FAFSA is filed.
She should documentation of her income…w-2 or 1099 or whatever.
@kelsmom since they filed jointly in 2015, how,would,this student deal with the DRT? It would not be accurate for just the mom…unless she filed separately in 2015.