<p>I have some FAFSA questions for you...</p>
<p>Since it is early January and there is no way 2009 taxes will be complete until after February 1st (due to really late arriving W-2's), I need to file FAFSA with either last year's tax information or with our estimated information based on the final pay stubs of 2009.</p>
<p>Gross income during 2009 was 103,000 versus 105,000 during 2008. </p>
<p>Will the $2100 drop make any difference? </p>
<p>Should I wait to get supporting documentation for this year or file with last year's info and ammend?</p>
<p>Should all bills be paid a bit early so that less cash shows up in the checking account?</p>
<p>Thanks for the help!</p>
<p>You’re suppose to estimate 2009 based on 2008 on the FAFSA</p>
<p>You should complete the FAFSA now using estimates for 2009. You should do it in keeping with the deadline for the schools to which you are applying. If the school has a January deadline…here’s what you do.</p>
<p>File your FAFSA using a “will file” status which means you WILL file your taxes but have not yet done so. Use the BEST possible estimates based on your end of year pay stubs, interest statements etc. Then submit it to the school(s).</p>
<p>Do your taxes as soon as reasonably possible after Feb 1 when you have all of your 2009 documentation. Go back IN to the FAFSA website and amend your FAFSA to reflect the figures from your 2009 completed tax return and resubmit to the college(s). Change your status to “taxes completed”. </p>
<p>You will ONLY amend the portions that pertain to figures on your tax returns. Assets do not get changed.</p>
<p>You should plan to do your taxes ASAP after Feb 1. This is the year you want to get your taxes done as soon as possible. It is NOT the year to wait until April 15th to complete your taxes.</p>
<p>If you need to file FAFSA before your 2009 taxes are filed then estimate as accurately as possible. You will have to go back and correct once you file your taxes.</p>
<p>For assets you should report assets as of the day you file FAFSA. If you can pay bills early it won’t hurt. it may or may not make much difference. Parents have a certain amount of asset protection based on the number of parents (1 or 2) an the age of the older parent. If your assets are under the protected amount they don’t impact the EFC. If they are over the protected amount them up to 5.6% goes to the EFC. Students have no asset protection. 20% of their assets go to the EFC.</p>
<p>With an income of $104,000 you will not be eligible for federal grant aid even without assets. Institutional aid will depend on the school and its policies.</p>