<p>We have a 0 efc and our daughter is attending an in state university as a freshman 2012-2013. Last year we ended up with a lot of stress since we were not required to file a tax return but did file thinking it would be a useful document in the financial aid process. We were unable to file electronically last year and filed by mail, which caused long delays since we were not due a return. We were unable to get the necessary electronic copy of our taxes for a needed grant application. This year we discovered we cannot file electronically since some of our lines on the tax form come up as 0 which the irs system will not allow you to file electronically. We filed the Fafsa on time and indicated we would file taxes again but now knowing we will face the same delays in getting the electronic copy of our(parents) taxes the question now becomes should we amend the Fafsa to not being required to file taxes? Our daughter did file taxes and was able to do so electronically. I am trying to figure out what may hurt her or help her in the Fafsa process and the Grant process. The school has already notified us of being selected for verification but the school would accept a copy of our mailed taxes unfortunately the state grant program, which provides the largest portion of her aid, will only accept the electronic copy.<br>
Should I file the taxes or amend the Fafsa?
Additonally she has been keeping all her college funds in a separate bank account is there a specific way we need to be managing that as well?</p>
<p>If you don’t need to file taxes, there is absolutely no reason to do so just for FAFSA purposes. You can amend your FAFSA to “will not file.” You will have to complete a non-filer statement (the school will provide).</p>
<p>I’m concerned how it will work out with the state grant I’ve been waiting this past week for a reply about it from them. Is there a downside to not filing the taxes and amending the Fafsa? Our low income raises red flags and we want to do whatever provides the the best information for evaluation by fafsa, the university, and for grants and scholarships.</p>
<p>You are already being verified, so if you are asked to give info on how you live on such low income, you would be asked regardless of whether or not you file taxes. It honestly does not matter for aid purposes whether or not you file taxes (only whether you file if you are supposed to file - that is, if you earn enough that you are required to file).</p>
<p>Our only income is social security disability and we are not required to file a tax return but last year it seemed the tax return was needed for the state grant. I thought the process would be easier this year but the electronic tax filing not being available to us is already slowing things down and stressing me out. Otherwise I would have tried to look into the best course of action before now. The information for the verification at the university is relatively straight forward and I believe I have all the information they are asking for from us, it is the grant I am most concerned about. We also wonder how or if to document the money our daughter has received from grants and loans that she maintains in a separate account for her college costs and expenses.</p>