<p>If I put $2K into an IRA I can get my AGI below 50K</p>
<p>The question "eligible to file a 1040A" Can I use this if I chose to take the standard deduction vs using itemized deductions? My refund would be a few hundred lower, but if I can qualify for the simplified needs test and not have assets considered, my EFC would be several thousand lower.</p>
<p>And then there is the issue of the tuition and fees deduction. Does that disqualify me from being "eligible to file a 1040A"</p>
<p>finaid hs a page with info about this. According to this you have to file a 1040 if you are taking the tuition and fees deduction but, if that is the only reason you have to file a 1040, you can answer yes to the question 'are you eligible to file a 1040A'</p>
<p>I *think *you can reduce the AGI that way you are proposing. Even though the IRA deductions are added back on one of the schedules the AGI would still trigger the simplified needs. I think. Try running it through the EFC calculator to see if it works.</p>
<p>that finaid site is where I got my info from.</p>
<p>I have run the numbers with the AGI below 50K and putting the 2K from the IRA into the worksheet B number and saying that I can file the 1040 (and not use my itemized deductions and get a smaller refund) and it DOES ignore my assets.</p>
<p>My EFC goes down by nearly the exact amount of the IRA contribution when assets are excluded. I guess it's sort of a wash. Tie up the money for the next 11+ years (until I'm 59 1/2) or give it to my son's school (which gaps aid anyway but maybe my son could get a perkins loan again with the lower EFC).</p>
<p>You'd think being a budget analyst as a profession would make me like the fun things you can do with money to affect your EFC, well you'd be wrong....</p>
<p>it seems like when I did it- it was added back.
so if I was using 2007 #s for the 2008-2009 FAFSA, and in 2007 I put $2,000 into an IRA, it made my taxes lower, however, it was added back into income for the FAFSA.</p>
<p>but I don't remember- I may have itemized anyway.</p>
<p>Did you use the new formula when you made your comparison? There are some changes in the income protection percentage, so that may affect your situation. You may want to wait until the new FAFSA comes up on the web. Then you can run your numbers with the new formula (I assume the finaid calculator will update). I think you can contribute to your IRA for this year after Jan. 1 - but I am not 100% certain about that. If you can, you'd be able to check right after the first of the year & decide then what would work best for you. As long as you are reporting everything properly on the FAFSA, if it works to your advantage, you are good.</p>