<p>I'll definately call FAFSA help line with this question but just wondered what folks here thought or experienced.</p>
<p>I'm a single Mom. D will be going to college this fall. First time for FAFSA. My mother lives with us and I do claim her as a dependant. So feel no question putting her down as additional person. </p>
<p>Question has to do with my sister, age 52. She moved here and in with us from out of state a few years ago. She has not found full time work and can't support herself. Does substitute teaching. She contributes nothing to household expense. Makes probably less than 7k a year. </p>
<p>What do you all think? Feel pretty sure she would count.</p>
<p>* My mother lives with us and I do claim her as a dependant. So feel no question putting her down as additional person.
*</p>
<p>I don’t think it matters whether you claim her as a dependant on taxes. Does your mom have any income (retirement, social security, etc). If she does, it may be hard to claim her on FAFSA. </p>
<p>The question about grandparents living in the home comes up frequently. If the grandparents have an income, then it’s hard to claim that you’re providing over 50% of their support. It has been said that often when GPs are living in the home, they are actually contributing financially to the household. In such cases, you can’t count them because you’re not including their income.</p>
<p>As for your sister…you say that she earns about $7k per year. Can you show that you contribute more than $7k per year for her (that would be more than $500 per month)? </p>
<p>Depending on your income, it may be hard to show that you’re paying $7k+ for her, plus X+ for your mom, plus whatever you and your child(ren) are costing.</p>
<p>This IRS publication includes details as to what constitutes “support” and a worksheet to figure out if you are contributing more than 50% (includes how to figure the value of the lodging you provide - including furnishing if you provide a furnished room, utilities, food, etc):</p>
<p>[Publication</a> 17 (2011), Your Federal Income Tax<a href=“the%20section%20with%20support%20examples%20and%20the%20worksheet%20begins%20about%203/4%20of%20the%20way%20down%20the%20page”>/url</a></p>
<p>For IRS purposes, a “qualifying relative” can not make more than $3700 per year in gross income (see above publication) and still be your dependent for tax purposes. But the FAFSA folks <em>might</em> not care how much money your mother or sister make, as long as you are providing more than 50% of support - I’d check with them.</p>
<p>This from an IRS blog details the categories of “support”:
Generally, the expense categories for determining support are:
the child’s share of household expenses
the child’s total clothing expenses
the child’s total education expenses
the child’s total medical and dental expenses not covered by insurance
<p>I’m not sure the amount the dependent earns matters for FAFSA purposes. Tax dependency and financial aid dependency are not the same.</p>
<p>My daughter earned $7000 the year she was a junior in college. We provided FAR more than that in support to her. She was our dependent…for financial aid purposes.</p>
<p>*My daughter earned $7000 the year she was a junior in college. We provided FAR more than that in support to her. She was our dependent…for financial aid purposes. *</p>
<p>I think it can matter when the “dependent” isn’t a child. Certainly, in your case, you were spending a LOT more than $7k per year for your daughter because you were paying a large chunk of her COA at a private university…and she was a dependent under basic FAFSA rules…child under age 24, not married, not graduated, etc. :)</p>
<p>I remember this question being asked and (I think) Kelsmom said that when it’s a grandparent (and I suppose any other non-immediate family adult) is living in the home, then if that person has an income (like retirement, job, etc) then the family can’t just count them in the household like a dependent because in many cases, they’re actually contributing to the household. </p>
<p>For instance, if my MIL came to live with us, she has a SS check that she gets each month. I could hardly claim that I’d be providing more than 50% of her support.</p>
<p>In the case of the grandparents, if it was going to make a difference in aid (often it did not), we would contact the family to ask if the grandparent had any income … retirement, social security, dividends, etc. Many of our families were immigrants, and the grandparents did not have any funds to contribute. Our families seemed to be pretty honest as far as the grandparents’ income was concerned. Those with a modest income would be removed from the household size.</p>
<p>In the case of the grandparents, if it was going to make a difference in aid (often it did not), we would contact the family to ask if the grandparent had any income … retirement, social security, dividends, etc.</p>
<p>OK…</p>
<p>so what would be the situation of another type of relation living in the home…aunt, uncle, etc? Wouldn’t the same guideline apply? if that person has a modest income, they would be removed from the household?</p>
<p>It would make sense in the case of immigrant grandparents who don’t have an income. I think in those cases, the sponsor family has taken financial responsibility for these family members so that they could come to this country.</p>
<p>Yes. Schools do have their own policies about how they handle this, though. Technically, the school can accept the signed verification form as proof that the family supports the relative at least 50% … that is what is asked, and that is what the signature certifies. Some schools investigate further because it is their policy to do so. For example, where I worked, people often put the relatives they listed on their tax returns as deductions in their household size. When asked, we would find that they didn’t live with them, and they didn’t support them … but since no one else was claiming them (no tax return on the relative’s end), the family would claim them for the deduction. We would remove these people from the family size.</p>
<p>Sorry I didn’t come back to this before now. Dealing with some heavy stuff right now.</p>
<p>FAFSA said yes my sister would be a person to show in my household as long as I provide 1/2 her support. No dollar limit as to her income and mine is not factored in either.</p>
<p>IRS is different and there is the 3700 cap on her income to claim as a dependent. Although for my mother, Social Security is NOT counted as income.</p>
<p>Another factor to consider is that on 12/30, Sister had a massive stroke w/paralysis on one side and we learned it was due to lung cancer. So she is disabled now and unlikely to be able to support herself for the 2012-2013 school year with all this. </p>
<p>Like I said, heavy stuff. Will have to get back to FAFSA soon though</p>