<p>My ex husbands tax preparer is amicable to filing our daughters FAFSA using my ex's tax information. Our daughter spends equal amounts of time with each of us during the Summer. Throughout the year she is on campus at college.</p>
<p>His tax preparer sees no problem using my ex's tax information for my daughters FAFSA ensuring that she will receive full benefits. I would still be claiming her on mine and my husbands taxes.</p>
<p>I am feeling a little uncomfortable about it but the tax preparer says there is no issue with it. He says this is a "loophole" in the system. And that all kids use the information of the parent that makes the least amount of money. </p>
<p>What are your thoughts?</p>
<p>The tax preparer is playing loosey-goosey with the rules. All kids don’t commit fraud and use the lowest earner when it’s not within the rules to do it. Precisely equal amounts of time during the summer, to the day? How about school breaks? Precisely equal time means the household who supports the student most is required to be included on fafsa. Who claims the student on taxes is irrelevant but it seems to support that you provide the most support unless the claiming is per the divorce agreement. It’s not a loophole, it’s fraud if not valid. Did you get this direct from the tax preparer or through your ex’s filter.</p>
<p>It’s not a loophole and not all kids use the info of the parent who makes the least amount of money. However, if it’s close or equal as to how much time a student spends with the two parents, it behooves that student to spend a little extra time if possible before the filing of the FAFSA to break that tie, by making sure s/he spends more time with the parent making the least.</p>
<p>@ annoyingdad</p>
<p>I felt this was questionable so I actually spoke with the preparer and he did indeed back what he was saying. I just feel extremely uncomfortable about it. We put her on our taxes because I am the “owner” of her 529 plan and she is the beneficiary. She also does not work.</p>
<p>I would take cptofthehouse’s approach and make sure she spends at least one day more at your ex’s house than yours, making filing with her dad’s information the correct and in fact required thing to do.</p>
<p>FAFSA rules do not care about the 529, taxes, custody, etc. in the definition of who the custodial parent is of the student. It’s simply the parent with whom the student lived the most for the one year period before filing the form. If it’s a even steven tie, then it goes to the parent who gave more financial support. </p>
<p>What your preparer is counting on, is that this is rarely checked, and when it is, in many cases difficult to prove if both parents live in the same area. Sometimes parents, and kids really can’t say who had the kid the most because they didn’t keep track. It’s truly up in the air, and if they can’t say, then who can? </p>
<p>My friend who has primary custody of her kids, made sure that her son, spent more time at his father’s in the year before FAFSA was filed, specifically because he is low income, and she is not. Frankly, it made little difference in most of the schools, since the dad did not make so little that the kid was PELL eligible, state aid uses both parents’ incomes, and the FAFSA only schools did not meet full need anyways. He maybe got a little bit more in offers, but ended up going to a PROFILE school anywasy which uses both parents’ financials. It’s not like an embarassment of riches is awaiting the student if he uses the parent with the lower income, most of the time. Most schools do not meet full need as calculated by FAFSA alone.</p>
<p>Where does your daughter spend the bulk of her time? What is her permanent address at college? If your daughter REALLY spends an equal amount of time with each parent…then the parent who provides the majority support is used on the FAFSA. </p>
<p>If you are complying with the FAFSA regulations, it will not be an issue.</p>
<p>Since your DD spent equal time with both of you during the summer and breaks, and the definition is the one year period before the form is filed, not the calendar year, perhaps if she spends a weekend with dad, that will break the tie. I guess an issue would be if you and your ex live far apart and it’s pretty danged clear who your daughter lived with the most during the high school year.</p>
<p>My ex and I live within 20 miles of each other. I guess I am just finding this weird because I was on her FAFSA last year. With mine and my husbands income she gets nothing from financial aid. If my ex filed with her she would get full pell grant because he makes very little and his new wife has 2 kids in college also.</p>
<p>It’s not wrong for her to spend more time at his house, and since it benefits her, why not? Ex may very well be selected for audit, so make sure she really does spend more overnights there.</p>