<p>If most of my assets are in mutual funds, does the value only get reported as of Jan 1? IF the market goes way up or down between then and when aid is awarded will I need to submit my Dec 31 brokerage statements or the most recent ones such as May or June if I'm asked to verify?</p>
<p>The value of your mutual funds for FAFSA is a snapshot at the time you file. If you file FAFSA on January 1, then you take the value at that time. It's difficult to file January 1 because you'd have to have your taxes done then, but in theory it's possible. If you file FAFSA on February 15, then you take your mutual fund value as of Feb 15. You should print out a copy of your account value when you file FAFSA (if you can see it online) and store it in your files so that you have it for verification if needed. If the value changes between the time you file and the time you're verified, you'll be able to document the original reported value.</p>
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<blockquote> <p>It's difficult to file January 1 because you'd have to have your taxes done then, but in theory it's possible. >></p> </blockquote>
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<p>It's not difficult at all...you would just be using estimates (base them on your end of year paychecks for your income and taxes paid, and your last bank statements (for your interest income). Your status on the FAFSA would be "will file" meaning you will be filing your taxes but haven't yet done so for the 2008 year. As noted above, your assets (bank account balances, mutual funds, etc) are the values as of the date of the initial filing of the FAFSA.</p>
<p>Now...once you get your 2008 taxes done, you would go back into the FAFSA site and amend that FAFSA to reflect the accurate info on your 2008 taxes and change the status to "taxes completed" (or whatever it is that means that your tax return has been completed). You do NOT change your assets...those remain as they were on your initial filing unless you made a mistake (one year, we put in a wrong amount and had to change it). </p>
<p>But it really isn't any harder to do the FAFSA in January than it is to do it in February...except that you have to use those estimates for income and taxes, and interest income, etc.</p>
<p>Once you receive a financial aid letter or package, are you required to send the school all of your documentation? Medical expenses, itemized expenses, etc?</p>
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<blockquote> <p>Once you receive a financial aid letter or package, are you required to send the school all of your documentation? Medical expenses, itemized expenses, etc?>></p> </blockquote>
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<p>You actually should check the requirements NOW. Some schools require the submission of tax returns with all schedules and W-2s attached as part of the application process. Others do not.</p>
<p>Some schools request this information for students who are planning to enroll at their school (in other words...they don't want all this extra "stuff" for students who will not be attending their school).</p>
<p>Re: medical expenses, are you requesting that the school consider a special circumstance due to high medical expenses?...you would only be submitting medical expense itemization if you are asking the school to review your financial aid application for a special circumstance (high medical expenses). If that is the case you will need to submit a letter directly to the financial aid office requesting that they consider your special circumstance. You should have all of the necessarily documentation to support your situation. If you are not applying for a special circumstance due to medical expenses, you will not need to submit your medical expenses at all.</p>
<p>And lastly...there is always the chance that you will be "selected" for verification. If that is the case, the school will notify you what needs to be sent. Typically this is all signed tax returns (both parents and students), all schedules, all w-2s and 1098s, and any other supporting tax return information sent with your return (e.g. any other forms you completed as part of your return). </p>
<p>But do check now....as some schools ask for tax information as part of the financial aid application process.</p>
<p>Sorry, I should have written "It's difficult to file a final (rather than a "will file taxes") FAFSA on January 1".</p>
<p>Which leads to the interesting question: if you've filled out FAFSA on January 1 based on assets at that time, and the assets depreciate between then and the time you can file a final FAFSA with complete tax information, is it legitimate to update the (lower) asset value?</p>
<p>And lastly...there is always the chance that you will be "selected" for verification. If that is the case, the school will notify you what needs to be sent. Typically this is all signed tax returns (both parents and students), all schedules, all w-2s and 1098s, and any other supporting tax return information sent with your return (e.g. any other forms you completed as part of your return). </p>
<p>I thought that was all documentation EVERYONE had to provide if given financial aid. </p>
<p>Regarding medical expenses, I didn't know if you have to have supporting documentation for each line item on your tax schedules, such as the bills totaling your medical expense deduction.</p>
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<blockquote> <p>I thought that was all documentation EVERYONE had to provide if given financial aid. >></p> </blockquote>
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<p>Each college has its own requirements for what you file. Some want all that info and some do not. Check with each school. AND again...some schools want that info BEFORE they award you financial aid...it is part of their application process...Check each school.</p>
<p>Where's my crystal ball when I need it? ;)</p>
<p>Actually I would prefer a magic wand:)</p>