FAFSA #36 and #44d? With only S&G income!

Paying for College
1

I’m going to have my taxes done by a professional BUT I need an estimated # for my sons Fafsa.

I have his 1098T form. It says:
Box #1 Qualified Tuition Expenses $9,580
Box #5 Scholarships & Grants $18,007.

He did not work in 2014, so no W-2, no 1099, no income except for the S&G’s

I read on another post that I can claim him as a dependent, but he has to file his own taxes because of this money.

Fafsa Question #36 Student’s AGI?.. is it ZERO? or 18007 -9580=$8427
And
Fafsa Question #44d Student’s G&S Aid reported in AGI? …The exact same answer?

I called the school FinAid dept and they didn’t know, said “ask my tax person”. I called FAFSA 800# and the lady didn’t even know what a 1098T form was. First she said to “ask my tax person” and then said my son doesn’t have to file his taxes because he didn’t work, and just put Zero in both places.

I didn’t know if I should trust her, she wasn’t confident and had to ask her supervisor twice.
Figured you all would know more than her.
I’m low income 39000 if that matters.

Like I said, I’m going to have my and my son’s taxes done when he comes home for spring break BUT I need an ESTIMATED amount for the FAFSA now.

THANKS SO MUCH!

2

That sounds right. I am submitting the tax for my D and she has some earned income and S&G over tuition/fee. Basically I did the same way as you but with more in AGI due to her earned income.

3

ok. so you think it’s $8427 as well?
Because that’s what I thought and then when the Fafsa rep said Zero I just thought…wow, I don’t know what the heck I’m doing here!
Thank you!

4

Is the box 5 $18,007 S&G the amount for the whole academic year (2014-2015), or just the fall semester?

Same question for box 1.

5

Read IRS Publication 970 about the AOTC - don’t miss out on up to $2500 in free money.

6

@Madison85 When you receive S&G more than Tuition/Fee, you won’t get the $2500 free money.

7

Do you have a source you can cite for that? If the students picks up income to get to $4000 of QEE, where is the problem?

8

I know that @dodgersmom would disagree with Post #5, maybe she can chime in.

9

@MiddKid86 Wow…idk , I just assumed semester because it says for 2014. But that doesn’t sound right. I better check. What is it usually? Are all schools different? It’s a US Government form…they should all be the same, right? (…you would think) He goes to UC Berkeley. I better check! Thanks

10

Check out the QEE for AOTC. R&B and most expenses other than tuition/fees are not included. I hope I am wrong as I have been working on the tax return since last week and very disappointed in not being able to claim much other than the $31 course pack.

Since the tuition and fees are completely covered by S&G, you can’t find $4000 QEE for AOTC (but for 529 withdrawal).
http://www.irs.gov/pub/irs-pdf/p970.pdf

11

@Madison85 Thank you, I just printed out the 970Pub. I’m going to read over it and take it when I do my taxes, just in case my tax person isn’t as informed about educational taxes as much as I hope. I hope I get the $2500! That would be wonderful! But I still need a number so I can submit this Darn Estimated Fafsa!

12

http://www.irs.gov/publications/p970/ch02.html

Look at the tip for including additional scholarships and grants in student income in order to get the AOTC.

13

@billcsho Hummm…I see what you mean, I think I’m reading it the same is you. Maybe @Madison85 knows something we don’t?? I hope so! :slight_smile: Let’s see if @dodgersmom gives us a look.

14

It also shows on the link from Madison85:

In some rare situations, scholarship/grant may be allowed to pay for expenses other than tuition/fee. For my D’s school, they don’t even provide you a 1098-T if S&G is more than tuition/fees.
If the scholarship has no restriction on paying tuition/fee only, then one may report that amount as taxable income and pay for non QEE while claiming the remaining QEE amount for credit.

15

See - Coordination with Pell grants and other scholarships.

16

I doubt it is ‘rare’ that scholarships and grants can be used to pay expenses that are not tuition and fees.

17

Grants can be, but most scholarships may have the restriction.

18

Your statement has no meaning - ‘most may have restrictions’.

Sure, and most might not.

19

Now I see what you mean. If there are significant amount of S&G that can be used to pay for non-QEE and leave $4000 in QEE to be covered out of pocket, then you may report that part of S&G as taxable income while getting the AOTC credit. For OP, the CoA needs to be $26587 or more, and $12427 of the S&G or more can be used on non-tuition/fee expenses in order to claim the full $2500 credit.

Two of the 4 scholarships my D got are for tuition only, the other 2 have no information on the web. I am asking the financial aid office right now. The sad thing is these 2 scholarships clearly marked for tuition only replaced part of the grant from the school and leave very little grant in the FA package.

20

Well I just figured out the $18007 for Grants and Scholarships is for 2014 only. Summer and Fall semesters.
And there all State, Federal and UC Grants & Scholarships so they determine where the money goes…

But I don’t think I can do what your saying because I don’t have $4000 in QUEE that I paid out of pocket for 2014.

So I shouldn’t do that example in Pub 970 “Coordination with Pell G&S”…

OK…right when I think I’m understanding this…I lose it again.
I’m going to let my tax person worry about my taxes and my son’s as well.
But what to I put for now on my son’s flipping FAFSA?

36 The estimated AGI?

and #44d The estimated G&S Aid reported in that AGI?