FAFSA, married filing separately (not me)

[garland]

<p>Question for the FA experts here: recently, I have anecdotally heard of students filing for FAFSA using just one parent's income, when the parents are married but filing separately. I can't imagine that's in the bounds of allowable, but I can't find the place that would say that both parents' income tax forms must be used--the line for finding gross income on the 1040 says nothing about looking at more than one form. It would seem to be a large loophole if it were not enforced, but I'm wondering how common this is. Or perhaps I'm misunderstanding the stories I've heard. Any thoughts on this?</p>

[swimcatsmom]

<p>From FAFSA for the parent section

If your parents are both living and married to each other, answer the questions about both of them.

</p>

<p>No loophole. Just people trying to cheat the system.</p>

[garland]

<p>That’s what I thought. Thanks. I wish it was written more explicitly (when they ask for information from 1040’s, they might explain that there could be more than one. ) In the case of some students I know, they have parents that might really not grasp this, though hopefully FA is catching it.</p>

<p>Also, it could be that the students are misunderstanding what the parents are doing.</p>

[swimcatsmom]

<p>It’s funny - in the student taxes section they are very specific about the instructions.

For the 2009-10 FAFSA, you will use 2008 tax information to answer the income tax questions. The income tax questions give 2008 Internal Revenue Service (IRS) tax form line references.</p>

<p>If you are married at the time you submit the FAFSA, even if you were not married in 2008, both your and your spouse’s income, assets and exemptions must be reported. If you and your spouse filed (or will file) separate tax returns for 2008, be sure to include the combined information from both returns on the FAFSA.

</p>

<p>They don’t repeat that in the parent section but there are several places where it is pretty clear they are asking for both parents information. Such as

90. Mother’s/stepmother’s income earned from working. Enter your mother’s/stepmother’s 2008 income earned from work (wages, salaries, tips). The amount reported here will receive certain income allowances (deductions) from the income for necessary expenses (such as taxes and basic living costs).</p>

<p>If your parents filed (or will file) a 2008 tax return, each should include only his or her share from IRS Form 1040—lines 7 + 12 + 18 + Box 14 of IRS Schedule K-1 (Form 1065); 1040A—line 7; 1040EZ—line 1. Even if your parents filed a joint return, they should report their earnings separately in Questions 89 and 90.

</p>

<p>I am not sure who people are trying to kid. I sure hope the FA people catch them.</p>

[kelsmom]

<p>Oh, man - you touched a nerve with me! When a student is verified, we absolutely DO catch that!! The student includes both parents on the FAFSA & says they are married … both parents are in the household size … one tax form comes in. Sometimes, they even try to cheat by only listing one parent on the FAFSA. But when we get the tax form with married filing separately as the filing status … ummmmm … do they think we are stupid!!! </p>

<p>But the WORST is the shyster tax preparers who tell folks that both husband & wife can file as head of household. We have a ridiculous number of students whose aid is being held up because their parents have to file amended returns … and they argue with us constantly. We tell them we aren’t reporting them to the IRS, but if they choose not to file an amended return, their kid won’t get aid. Period. My personal favorite are those who insist they were eligible to file that way because they don’t live in the same residence … and one return has a P.O. box. Funny how they back off when we require proof of another address for the parent with the P.O. box.</p>