Hi all, I am having some troubles doing my FAFSA. In short, I’m totally lost and confused. I know that is a loaded statement, but to explain:
My parents don’t know much English and I don’t speak much of my native tongue. So there’s a little language barrier and it’s really hard communicating with them. I guess since having immigrated here, they don’t know much about the system and are kinda oblivious about these forms and lines and such. I’m trying to do my FAFSA with them but they’re just as lost as me, they don’t know what 1040 is (I’m sure they have to have done it or perhaps they had a friend help?), and I don’t know who I can contact or talk to to get access to that.
I know it’s not even that big of a deal, all you need is a form and the info is right there. I just feel so lost/confused doing this because I don’t know how to get this 1040 or who to go to. I’m hoping that there are people in other similar situations? Certainly I’m not the only one with English-troubled parents. How did you do your FAFSA with parents who are somewhat oblivious?
Any help/advice would be appreciated, thanks very much!
If your parents have jobs they should have a federal tax return. They may not have done it yet though, but if they did one for last year that should be good enough for mine for estimates to meet any priority filing deadlines.
Are your parents here legally? Do they have legitimate jobs or are they paid under the table or supported by relatives?
If they have legal jobs, then they should have tax documents. By the end of this month they will receive W-2 statements, which are their earning statements from their employers. Those statements are used to prepare their 2015 taxes, using the 1040 form (or a 1040EZ if they do not own property, have significant interest income or claim high deductions).
If they have their last paystub from 2014, you can do an estimated FAFSA using the income and tax withholdings shown on that end of December paystub. Then, after they file their taxes, you can make corrections on the FAFSA.
If they are working illegally, then you need to report their income on your FAFSA without those documents.
Thanks everyone for your replies! And @KKmama haha yes I’m pretty sure they are here legally. Just that their English is very poor and often friends or other relatives help with this sort of stuff.
For an update, I got my mom to call an accountant friend who has helped with this stuff. I think it’ll all be ok in the end, I was just getting a little unnerved/stressed because it is just a totally confusing process (at least for me).
Just a few questions if anyone doesn’t mind to answer:
I’ve learned now that my parents file taxes separately. Is this better/worst in terms of FA?
In any case, for parents’ adjusted gross income would I just add up their incomes? It says on the site that this info can just be found on one line, but I’m guessing that’s only if they file together.
And maybe a little more trivial, but for student/my assets, that’s anything I have in the form of cash/savings right? So I include gift cards, money I got over Christmas, etc.? I just don’t feel certain cause it’s such a small + changing amount.
Are they legally married? Are they filing as ‘single’ or 'married filing separately?
Generally it is more advantageous tax-wise to file a joint return (married filing jointly). Maybe they could or should for 2014. Can you find out why they file separately?
Yes, just add your parents’ incomes together. In fact, it asks for it separately, so you are a step ahead. Your assets are what you hold in your name in savings accounts or at home. Honestly, I don’t think most people include the $10 received from Aunt Mary or what they have in their wallets if it is a small amount. You are supposed to, but most don’t spend hours counting their quarters in the cup on the dresser or looking through coat pockets. Do what you feel right doing.
Filing taxes separately won’t affect the amount of aid you get but generally it does mean your parents are probably paying more in taxes than if they were filing jointly. Are your parents married?
Yes, if they both filed returns you would add the amounts on each return to get the amounts to put on fafsa.
Don’t include gift cards, they can’t be spent for college. Yes, any cash you have on hand and any bank accounts need to be reported as of the day you first submit fafsa.
ETA: Only income from work is asked for individually, everything else like AGI and taxes paid asks for the parent totals.
@Madison85@annoyingdad yes they are legally married, so “married but filing separately.” And I did not know that joint would be better, I think they have been filing separately for the last several years. For a pretty long time, actually.
To make a long/dramatic story short, they er sorta don’t like each other. As in, they could get a divorce any time, but they told me (and my sister) that they’d wait until we both grew up and were independent before they split up. But I feel like that is disadvantageous in terms of FA. I know it’s a horrible thing to say, but wouldn’t it be better if they split up earlier (knowing that they WILL split up in the future) so that my sister and I get more FA since we would only have to report one parent? Either way, I guess it doesn’t matter at this point.
And @twoinanddone that’s good to know, I guess it doesn’t matter much unless a student had a ton of money in assets. It’s only a few hundred dollars for me so I doubt it would affect EFC that much
Do your parents both live together? If so, you need to include both of their incomes and assets on the FAFSA form.
If your parents were separated or divorced that would be a different story…but they are not. So for now, forget about the woulda coulda shoulda that would go with divorced parents. Yours are married…and not separated.
You have gotten the correct advice. Add up both AGIs to get the total. Add together both lines for taxes paid, etc. include any bank accounts either has.
@thumper1 yeah I know, they are not legally divorced and as of now that’s the only thing that matters, so there’s no changing that. And yes, it makes much more sense now, they have separate 1040s so I just add them and other than that, I think question-wise I am good, thanks!
@4kidsdad I’ve been told by a few people that it would indeed have been wiser if they split up for both my sister and my sake, but eh it’s too late anyway (at least for me). Maybe I can convince them otherwise when my sister goes to college in a few years (she is a high school junior) but for now I’ll just make do
@Madison85 I’m actually a California resident and only applied to CSUs and UCs. I’m assuming these are FAFSA-only schools? If so, grool!
Sometimes there is a good reason for married people to file separate tax returns. It often has to do with large medical deductions or business losses. Or sometimes they just don’t like each other. It’s not our business or yours, you just have to deal with it. However, there are some tax breaks they will not be eligible for (the American Opportunity Tax Credit for tuition, for one) and they may want to discuss this with a tax pro.
The AOTC is up to $2500 - unfortunate if the parents miss out on this substantial tax credit because personal dislike (and not tax savings due to large medical or business items) is their reason for married filing separately.
@thumper1 no there’s nothing else, I think all of my substantial questions have been answered. Other than that, I’m submitting my FAFSA probably tonight–and either way, you can correct it afterwards (I mean you have to anyway for 2014 info right?)
@twoinanddone@Madison85 Hm wow thanks for the info, didn’t know about all of that. Regardless, I guess I shouldn’t be too worried cause I’m going to a state school as opposed to a private school, and it’s only two years too since I’m transferring. I think I’m all good for now.
Yes you can correct it afterwards, but you can’t change the amounts listed for assets (cash in the bank, stocks investments) since those are the balances as if the day you file it.
Read more about the AOTC in IRS Publication 970. It is up to $2500 in FREE money provided certain conditions are met including that you spent up to $4000 on tuition/fees/books from loans or your own money.
@Madison85 wow I skimmed through the basics and I feel way more enlightened. So basically I need to prove that money is being spent on college, I presume through 1098 student tax form or something? And it’s essentially free money in that income taxes are lowered by up to $2500(?). Also, thanks for the heads up on the assets. And again thanks for all this info