<p>Situation:
Divorced parents who get along and cooperate. The child has lived with the mother 80% of the time up till the end of his senior year in high school so she is clearly the custodial for first year of FAFSA. Mothers EFC=0000 due to low income qualifier, so it's obviously beneficial that she remains custodial. Towards the end of the child's senior year (or during the summer) she will move into a smaller, more affordable place (since child will be at college and larger place no longer needed) and it will become much more comfortable for the child to spend most of the time at the father's. Almost all the college expenses not covered by FinAid will be covered by a 529 owned by the mother. Child will live at school and may not live in either parents house during the summer. Part of the child support payments the father makes to the mother will be redirected to the child while at college (Child support is required until the child is 21 as long as they stay in school). Being that the 529 is owned by the mother and I assume the child support payments are considered her money it would seem to me she legally is providing most of the financial support.
Questions:
What happens the renewal years of FAFSA as far as assessing who the custodial is? It would seem fair that it would remain the mother due to her providing more direct financial support, but does the "where the child spends most of his time" part of the consideration still come into play? Would it even be questioned or examined if she remained the custodial on renewals?</p>
<p>For FAFSA purposes, the custodial parent is the one with whom the student resides with the most…IF the child resides with one parent more than the other. It is not necessarily the parent who provides the bulk of the support. </p>
<p>HOWEVER, if the child lives with both parents an equal amount of time, the parent who provides the most support is the one listed and this is usually the parent with the higher income, not the one holding the college fund.</p>
<p>Who claims the child on taxes? Where does the child spend more days (literally count the days). Child support is not considered the mother’s money. It is the father’s contribution to the child’s support. I am not sure why ALL the child support money would not go directly to the child at college to pay for expenses but that is between the parents.</p>
<p>So FAFSA says (I believe) that whomever claims the child, lives with the child more days and who provides the most material support is the custodial parent. Next year it would probably be dad.</p>
<p>having said that…it could probably be whomever you pick if mom and dad cooperate.</p>
<p>If CSS profile is required it doesn’t matter anyways, as everyone is included in the calculations.</p>
<p>You can’t “just pick” who your custodial parent is no matter how cooperative your parents are. There are clear rules defining the custodial parent for FAFSA. </p>
<p>And in my opinion, whomever
Is the custodial parent for the FAFSA, should also be the custodial parent for the Profile.</p>
<p>It doesn’t matter who claims the student on taxes for FAFSA purposes. For FAFSA the custodial parent is the one with whom the kiddo resides with most. The other parent can claim the kiddo on the taxes (maybe he or she provides more of the financial support) but whomever the kiddo LIVES with most is the custodial parent for FAFSA purposes. Taxes do not matter at all.</p>
<p>After the freshman year, the child will probably start renting a place near campus so will not truly live in either parent’s house. Should we really be counting how many nights over T-Giving and Christmas the child spends at each house? I guess what I’m asking is if we just don’t count and if asked say “it’s a fairly even split, we didn’t count” and then move on to the next qualifier which is who provides more support, will it really be questioned?</p>
<p>I would also argue that the child support would not be considered a financial contribution by the father in this case. It’s money legally required to be given to the mother, she can do what she wants with it (right or wrong ) and it’s reported as part of her income on the FAFSA (and included as such in an EFC calculation I believe). I believe the IRS also looks at it this way when they determine financial contribution rules for dependency (I realize they have different rules, but the argument is the same).</p>
<p>Direct from the source, so I stand by what I said</p>
<p>If you did not live with one parent more than the other, the parent who provided you with the most financial support during the past twelve months should fill out the FAFSA. This is probably the parent who claimed you as a dependent on their tax return.</p>
<p>I just want to say that if you falsify information on the FAFSA for financial aid gain, it is considered fraud.</p>
<p>If you decide to “skip” to the next qualifier (which is not what you are supposed to be doing unless this child really lives equally with each parent), then you would use the parent with the higher income. I’m not sure how you could argue that a parent with $0 EFC would be the parent with the higher income, and providing the bulk of the support.</p>
<p>Wouldn’t it just be easier, and more HONEST to just make sure the kid spends more time at mom’s place than at dad’s?</p>
<p>Yes, of course, but if you read the OP mom won’t have room at home.</p>
<p>Well if the kiddo resides more with the dad then the dad is the custodial parent. If equal time, it is the parent providing the most financial support. This is usually the parent with the higher income. And usually this parent would be the one declaring you on their tax return. “Probably” does not mean this is always the case… It might be, But not always!</p>
<p>And…the missing link in this query is the dad’s situation. If the dad is the higher earner, and the dad declares the kid on his taxes, and the kid lives with dad on breaks because there is more room, then the dad would be the custodial parent.</p>
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<p>Sorry, I realize this is a bit off-topic, but I didn’t want to let this go without responding. First, child support absolutely is the custodial parent’s money, to spend as he or she sees fit for the benefit of the child . . . but it is NOT the child’s money. And the reason, in most cases, why child support would still go to the custodial parent after the child has started college is that the custodial parent’s expenses don’t just magically disappear simply because the child has moved out of the house. Unless child moves out lock, stock, and barrel, never to return, mom (or dad) still has the expense of maintaining a home large enough for child to return to during vacations. She (or he) may well still be paying for child’s health insurance. And there may be a myriad of other expenses that don’t end simply because child has graduated high school.</p>
<p>Yes, the child support is the mother’s money - but it is support provided by the father. </p>
<p>As far as taxes go, jamiecakes is not correct. claiming a student as a dependent is not the same as being the custodial parent. For tax purposes, either parent can claim the dependency, as long as the student is not providing more than half of his own support (and if he has significant amounts of student loans, he could in fact be providing 50% of his own support). If child support was considered the mother’s for tax purposes, it would be treated the same as Alimony - tax deductible to the father, and taxable to the mother.</p>
<p>Custody is an important issue for tax purposes as well as FAFSA, and tax law is very clear. The dependency exemption can move, but certain tax benefits (just like FAFSA custody) are based on presence. The parent with whom the student lived with the most can claim the Earned Income Credit, not necessarily whoever claimed the dependency. Remember, the student might not even be a tax dependent.</p>
<p>If the child lives on his/her own after starting college, and only visits parents briefly, it was my understanding that the original custodial situation would remain in effect. </p>
<p>Is this child intending to live on his own all year, or will he be at the college address only during school terms and then residing with a parent (or alternating parents) during the summer break?</p>
<p>Which parent has the higher income has nothing to do with being the custodial. It also does not necessarily imply that parent provides the most support. In this case most of the support will come from the 529 which will be owned by the mother. BTW, the 529 was set up as part of the divorce to insure college funding which is why this isn’t as strange a situation as some think due to the financial disparity</p>
<p>Past history also does not seem to come into play here, but the mother has always claimed head of household (and will continue to do so) and claimed the earned income credit. In many years she has signed over the exemption to the father (but this has no affect on head of household status, earned income credit or who is the custodial).</p>
<p>I don’t think what I am asking is how to commit fraud as many seem to be implying. I’m asking what’s right and how this should be interpreted. happymomof1 hit on my point. If the child lives on their own all year and only stays at either of the parents briefly during the year (visiting, not living), then shouldn’t the parent providing the most support be the custodial? To be counting what happens a dozen or so days throughout the year seems pretty ridiculous.</p>
<p>It does seem ridiculous but for FAFSA that’s exactly what happens. You could the actual number of days and if there is even ONE day more on one side of the other then that household is the custodial household.</p>
<p>If the kid never lives at either house then the other things kick in and here is the quote straight from the FAFSA.gov factsheet </p>
<p>• If your parents are divorced orseparated, answer
the questions about the parent with whom you
lived more during the past 12 months.
◆ If you lived the same amount of time with
each parent, give answers about the parent
who provided more financial support during
the past 12 months or during the most recent
year that you actually received support from a
parent. If this parent is remarried as of today,
answerthe questions on the FAFSA about
that parent and the person whom your parent
married (your stepparent).</p>
<p>For FAFSA my husband and I put that I was the custodial parent because although we split custody 50/50 and expenses 50/50 and there is no child support etc to factor in, my son does spend more days at my house due to circumstances. </p>
<p>Bummer since I make quite a bit more, but it was the truth.</p>
<p>kelsmom will know the answer to this one for certain. If she doesn’t appear here soon, send her a PM.</p>
<p>The wording of the second criteria should be noted:</p>
<p>◆ If you lived the same amount of time with
each parent, give answers about the parent
who provided more financial support during
the past 12 months or during the most recent
year that you actually received support from a
parent. If this parent is remarried as of today,
answerthe questions on the FAFSA about
that parent and the person whom your parent
married (your stepparent).</p>
<p>Since it states “If you lived the same amount of time…” it implies that there is some vagueness or lack of expectation that you would actually count the days if it was close. It would be an extremely rare and unique circumstance that if you actually counted you would come out with the exact same amount of time. The only common time this would apply is of the child did not live with either parent at all (though this assumption is not implied by the wording, note that it says “lived” equal time and makes no mention of not living with either).
Remember the situation I am asking about is for the renewal when it was legally established in the initial application who the custodial parent is. I would argue that this wording would seem to support that there may be a recognition once kids go to school, they often don’t live at home during the summer and the amount of days they stay with either parent could be minimal and actually keeping a record of this may not be expected if it is a close call.</p>
<p>(BTW, it’s been decided that the child will stay with the mother at least into June when high school ends thus insuring that there is no doubt of the custodial for the sophomore year renewal, since she will have 5-6 months vs the fathers 3-4 months in the 12 months prior to this renewal)</p>
<p>I doubt even if audited, anyone in a fianacial aid office is going to do a bed check. If the two parents do not live near each other, and student has a job on the books at a location which could only be realistic if the student lived at one parent’s home, it may be noticed. If student spends most of his time at school and at neither parent (say goes to summer school, or works as counselor), I would make certain I met 50% test, I would sleep on couch if necessary and keep very good records. I would explain to student in advance what has to happen, and kid will have to accomodate.</p>
<p>I am not going to weigh in on this one, because there is a tendency to try to twist things in a particular way depending on the individual post-er’s personal take on the situation. The only opinion (or interpretation) that matters here is that of the student’s school’s financial aid office. In this case, the student should ask this question - in writing - and get an answer from his financial aid office.</p>