EFC Calculator Problem...I think!!!

Applying to College
1

Just a quick question. I just used that EFC calculator and it told me that all my parents should have to pay for college is $690.00. Isn’t his a little low!!! I mean my parents were willing to pay 15,000+. My parents make about 70,000 with benefits, but are only taxed on about 50,000. So my question is is this a real estimate of what I will have to pay for college?

2

<p>when u mean taxed on 50k do u mean they lose 50k from taxes or what? yeah the calculator could be wrong. update me today</p>

3

<p>I mean that out of the money they make, only 50,000 is taxable. I believe they are taxed like 12-15,000 (money that is sent in as taxes).</p>

4

<p>Bumpidy Bump</p>

5

<p>Anyone want to help me out?</p>

6

<p>That does not sound rightm it is too low. It does not sound right that some income is untaxed, either.</p>

7

<p>Well a certain part of a military pay chech in untouchable + the military gives tons of benefits.</p>

8

<p>I live in a single parent family, my mom makes 27k a year. My EFC is 912, so yes there is a mistake somewhere.</p>

9

<p>Jordana, I’m not quite sure what you mean by “your parents are only taxed on $50,000”. But, your family’s EFC is a sum of four different things. It is a percentage of 1) parent’s income, 2) your income, 3) parent’s assets, and 4) your assets. As to parent’s and your income, this is the adjusted gross income (AGI) found on line 36 of a 1040 form, line 21 of a 1040A form, or line 4 of a 1040EZ form.</p>

<p>If your parents AGI is below $50,000 and (this “and” is important) both your parents and you have filed a short form (1040A or 1040EZ, or don’t file at all), then all family assets (# 3 and #4 above) are excluded when it comes to calculating the family’s EFC. (this is called the simplified needs test). And if your AGI was beneath approximately $2700, then # 2 above was also excluded when the calculator arrived at your family’s EFC. </p>

<p>It’s thus possible and entirely proper that EFC calculator only considered a percentage of your parent’s AGI when it determined your EFC.</p>

10

<p>Be sure to use Adjusted Gross Income, not taxable income in calculator. Some calculators prompt for taxable income but FAFSA is adjusted gross income.....big difference as I found out since I had used the calculator last year to estimate EFC before getting into the real thing this year and found my EFC went from $6K(calculator) to $18K FAFSA. Went back to calculator and discovered the problem. I am single parent household, $52K wages and $10K childsupport, tiny savings, negligible retirement assets.......quite a shock......be careful which calculators you use.......</p>