The CSS Profile asks for Federal taxes paid. The higher the amount, the higher the EFC.
In 2021 I claimed the $7.5k credit in my 1040, which brought my total tax down. As a result, now our EFC is up by ~$2k for the coming academic year compared to last year (all else being equal).
Has anyone gone through this too?
You can always submit a special circumstances appeal to request that the school recompute your EFC without it. There’s no guarantee that they will, but they might. It’s worth asking. Of course, it may have no impact on your aid even if they do recompute the EFC.
Was your income the same?
You paid $7.5k less in taxes, so the school feels you can pay $2k more in tuition. Still leaves you with $5.5k more than if you hadn’t received the credit.
The fact that it’s “one time” will sometimes be taken into consideration by a school. You never know if you don’t try.
I understand this. I just wanted to put this info out there so people who plan to claim the EV credit are aware there is a financial aid hiccup down the road.
Thank you for the tip. I’ll give it a shot.