My father lives in another country and the tax year in the country begins in July. In May 2015, he retired and since then he has not worked. As a result, he did not file any income tax returns, and I showed his income for the latest tax year as zero on the 2016/17 FAFSA. Then I got selected for verification and when I emailed my school to tell them about his retirement, they said that they look at the income for the calendar year, so I should show the previous tax return, including January to May 2015. Based on those 5 months, his income should be calculated. Should I make corrections to FAFSA to reflect that change, or should I just submit the required documents for verification?
Submit the documentation the school requested.
Are your parents married?
Yes, they are. But my mother doesn’t work
Send the school whatever they requested. Call the school and see if you should make the change to your FAFSA.
All income earned in 2015 must be listed on the FAFSA…ALL.
Is your dad a U.S. Citizen? If so, was he required to file U.S. Income taxes?
He is not a US citizen and does not work there so no, he was not required. He filed foreign taxes and the tax year is from July 2014 to June 2015.
So now that your dad is retired, what is your family going to live on?
^ That is going to be the question the colleges ask.
The tax year for your dad’s country of employment does not matter. Any money he earned in 2015 MUST be reported on the 2016-17 FAFSA. That will be the case for the 2017-2018 FAFSA as well.
ETA so if his tax year is July 2014-July 2015, then you DO have a tax return that he filed…in his country. You will have to include the money only from January until when he retired in May 2015. And if he collects a pension that started when he retired…THAT must be included as well.