<p>Getting ready to address the whole fafsa form, and am a bit confused with much. I've been unemployed for nearly 2 years, so that is my only income (while I attended schooling-which is now complete). I have a savings account, which is swelled with an insurance claim for a bad roof (which hasn't been repaired yet). Should I make sure I pay for the necessary repairs before filing the fafsa, or could it be noted that funds are set aside for that purpose? Does the equity in my home, and the ex's home both need to be listed on fafsa? It amazes me when I do some rough calculations that it seems I won't get much financial aid, because I'm right-side-up on my home valuation. I also have been told by someone that Pell grants are likely out of the question, because even with only unemployment as income, it likely is more than the limits allow.</p>
<p>Any advice or comments are welcome! Seems like a wonderful website to learn much.</p>
<p>Generally speaking, I would suggest doing the repair first … but it may not be necessary in your case.</p>
<p>Will you file taxes in 2009? What will your AGI be? CAN you file a 1040A or 1040EZ … or are you currently unemployed (in which case you will say YES to dislocated worker & thus the tax form you file is irrelevant) … and IF your AGI is < $50,000 your savings won’t be considered. If the AGI is <$30,000, your EFC is automatically 0.</p>
<p>I am confused - is this financial aid for you or for your child? You say your schooling is finished but then you say ‘you’ won’t get the Pell. The answer makes a big difference to the answers to your questions.
Home equity in the primary home is not reported on FAFSA at all.
Only the parent who the student lives with the most is reported on FAFSA. The other parent is not reported at all. (this may be different on CSS but on FAFSA only the custodial parent).</p>
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If you are the parent you have a certain amount of asset protection. If the funds in the bank are below this amount then they will not affect the EFC. If they are above the amount they may. You cannot note that funds are set aside for that purpose. In fact even if you have borrowed money for that purpose and it is sitting in the bank on the day you file FAFSA then you must report it.</p>
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Who told you that? If this is for your child then you would have to be making a boatload in unemployment benefits to make it true if you have no other income. I did not think unemployment benefits were that high. If it is for you then it might be true.</p>
<p>If this is for your child and your AGI is below $30,000 and you meet some other criteria then you may qualify for the automatic 0 EFC. </p>
<p>If your AGI is $30k or more but <$50k you may be eligible for the simplified needs test where assets are ignored.</p>
<p>I assumed the OP was the parent - definitely could be different advice for the student! If student is independent with no dependents other than spouse … no auto 0 … but assets are ignored if the student qualifies for simplified needs.</p>
<p>kelsmom,
Can you please clearify?
If AGI is < $50,000 and either you can file 1040A/1040EZ or you are a dislocated worker, then assets won’t be considered.
What if there are good assets? None will be considered?</p>
<p>Assets increase available income for the family contribution. They would increase the EFC. When assets are not taken into consideration, the family could have a million dollars in the bank & it wouldn’t make any difference to the EFC.</p>
<p>However, if you have a million dollars in assets, you might be REQUIRED to file a 1040 if you are required to itemize deductions.</p>
<p>I’m not a tax expert, but I thought that there was a certain limit for dividend/interest income whereby you were required to file a 1040. I could be wrong.</p>
<p>But nevertheless…check to be sure you are not required to file that 1040…and if you aren’t…DON’T.</p>
<p>Will you file taxes in 2009? What will your AGI be? CAN you file a 1040A or 1040EZ … or are you currently unemployed (in which case you will say YES to dislocated worker & thus the tax form you file is irrelevant) … and IF your AGI is < $50,000 your savings won’t be considered. If the AGI is <$30,000, your EFC is automatically 0.</p>
<p>I will file taxes, as unemployment is taxable, and I usually itemize for the interest on my home mortgage, which makes for a larger refund. Is there a difference in which form I use to file my taxes. I just recently landed a job (on monday) so that’s a bit of relief, but my income is less than half of what I used to make.</p>
<p>I appreciate all your advice, and taking the time to 'splain it to me! (sorrry if I didn’t use the correct way to quote other posts)</p>
<p>My million dollar comment is sort of tongue in cheek … you would very likely HAVE to file a 1040 if you had that much in assets! However, the dislocated worker box, if checked, negates the 1040 rule (and only ONE parent/spouse needs to be out of work to be able to check that box).</p>
<p>Now that you have a job (which is awesome!), you will not be able to check off dislocated worker. You may or may not want to try to do your taxes in a way that allows you to file a 1040A. If your 2009 income is higher than the simplified needs threshold, or if your assets are low enough that they won’t negatively impact you in the regular EFC formula, it won’t matter which form you file. Try the EFC calculators … or search for the EFC formulas & do it by hand.</p>
<p>So the dislocated worker option goes away the second you find a job? I didn’t realize that.</p>
<p>As kelsmom said - check to see if you would be better off taking a slight tax hit in order to do a 1040a/ez. It about killed my husband to not itemize the first time round but for us (husband is retired and with health problems) it made us eligible for the auto 0 the financial benefits of which far exceeded the minor tax savings we would have got from itemizing. Obviously this will vary for each person so run the scenarios both ways.</p>
<p>If you’re not a dislocated worker when you file the FAFSA, you can’t check the box. If things change & you become dislocated later, you have to do a special circumstances. Remember, FAFSA is “as of today.”</p>