My daughter earned 500.00 in 2015. She did not taxes or receive a W-2. I listed her income on FAFSA as I wanted to be totally truthful. Now her college is asking for her W2 form. I plan on calling tomorrow to let them know. Will I lose the aid, or will it be affected? I am a single parent
It probably won’t make any difference with the FA. Who was her employer? With $500 in earnings, it’s likely that she at least should have had FICA withholdings, which means that a W-2 should have been generated, unless she was considered self-employed, in which case she needs to file a tax return.
She worked at a summer camp at a college for a mth. no taxes were taken out
It sounds like she should have received a W-2, and FICA taxes should have been deducted from her pay.
On the FAFSA, did you indicate that she would NOT file?
The $500 was most likely a stipend. Since it’s under the $600 threshhold, withholding is not required. Over $600, she would have received a 1099 if no taxes were withheld.
If that was her only income for the year, you would not file a return if nothing was withheld.
If it’s considered self-employment income, the threshold for filing and paying self-employment tax is net earnings of $400 or more. If it’s regular income, she should have received a W-2 with at least FICA taxes withheld.