I am currently in the process of filing the FAFSA. However, I have a unique situation.
My mom files taxes under a 1040 NR form, while my father holds a diplomat visa status, meaning that he is exempt from filing taxes.
Due to this nature, I am confused on how I should go about filling in certain FAFSA questions, in particular my parents’ gross income. Should I only fill in my mother’s income? Or should I also include my father’s income? The only problem with adding my father’s income is that because he is exempt from filing taxes, and does not have any tax records, adding his income would not make sense when filling out other questions, like income tax, etc.
Any advice on how to navigate this situation? Thank you so much!
You will report both incomes. Your mom will report the information from her 1040NR, which should include all of her income & taxes paid. Your father may not have to pay taxes, but he does have to report his income on the FAFSA. He will do that under Untaxed Income, question 92 (I am guessing it will be 92h).
Okay, thank you so much! So in a question (I forgot which one) where it tells you to give each individual parents income, I’ll leave my dad’s blank and then fill it under untaxed?
That’s not what I meant… I obviously am going to put my dad’s income, but there is a specific question where it tells you to list parent 1 and parent 2’s income. @kelsmom said to list my dad’s income under Untaxed Income, so I was asking to clarify if I still had to enter his income twice, once in the question I’m talking about and AGAIN under Untaxed Income.
I just thought of something. Is your father paid by a foreign government?
From the Federal Student Aid Handbook:
“Non-tax filers, foreign countries, and international organizations
… What happens when one spouse does file a return and the other does not file but has foreign earned income as described above?
… the foreign income is still reported as income earned from work, but it is also added to the AGI of the tax filing spouse …
In some instances employees of certain international organizations, such as the United Nations, the International Monetary Fund, the World Bank, and others, might not be required to file a return, which results in situations similar to those described above. Follow the same guidance—a non-tax filer will report income from that employment as income earned from work only, while a person who is married to a tax filer will report it as income earned from work and add it to the AGI of the tax-filing spouse.”
You do NOT report his income as untaxed income in 92h. I was wrong on that.
@BelknapPoint I am a US citizen but my dad is a diplomat and my mom is a non-resident alien, who is dependent on my dad’s status.
@kelsmom Yes, my dad works for the United Nations. I’m so sorry to keep asking the same question, but I don’t quite understand—would that mean that I would include my Dad’s income in my mom’s income as one number? If that’s the case, wouldn’t the IRS tax amount that my mom filed not make sense?
FAFSA and the IRS forms are two different things. FAFSA does not tax income. The IRS does. Your mother was required to file US tax forms, and the numbers on her 2019 1040NR. are reported on the FAFSA. What @kelsmom has said is that your father should add his income from work to your mother’s AGI on that 1040NR instead of reporting it as untaxed income.
There is a chance that you will be asked to verify these numbers so a copy of that 2019 1040NR and your father’s year end income statement , however it is reported should be kept at hand.
It is confusing, especially because you fall into a relatively small exception to usual procedures due to your father’s job. Your mother’s situation is straightforward.
Yes, you will report your dad’s income as his income from work. You will add his income to your mom’s AGI from her 1040NR. You will not report any of your dad’s income as untaxed income.
You should not use the IRS Data Retrieval Tool, because it won’t work for your situation (you have to adjust the AGI, which you cannot do if you use the DRT). It’s possible that your FAFSA could be flagged for verification, but if the AGI is high enough, it probably won’t be. It all depends. Just in case, you should ask your mom to request a copy of her IRS tax transcript for 2019. She can order it here: https://www.irs.gov/individuals/get-transcript. (It’s ordered online & is free.)