<p>Question about the FAFSA and Stafford.</p>
<p>During the 08 housing bubble, my father lost his contracting business. Since then he has been doing private residential work through ads online and through word of mouth. My mother baysits a relative of ours. Because of this neither have a W2 form or proof of their income since they just earn "self earnings". My parents haven't filed their taxes for the last three years. Since they have no tax return or w2 forms to prove income, does this screw me out of financial aid? I'm a highschool senior and have had a part time job for the last year and did file my income taxes, if that helps the situation.</p>
<p>If it's not possible to receive aid, is it still possible to receive a Stafford Loan?</p>
<p>Thanks!</p>
<p>If they did not have to file taxes because they did not make enough money to have to do so, that can be indicated, but they still have to complete the FAFSA and put in the numbers. It’s not that the FAFSA cannot be completed, but your parents may be reluctant to deal with this. IF they should have filed and/or paid taxes, it is a red flag and it may trigger other action. Your app will almost certainly be flagged for verification, and your parents may have to come up with some other documentation of income and fill out additional forms. Lying on those forms is a Federal offense and can lead to prison. The Feds do not fool around about this.</p>
<p>If your parents should have filed for taxes, and they probably should have, even if they did not have to do to low income since if their income was that low they could have gotten the Earned Income Credit and money back for the government, they should do it now. Just because you have self earnings does not mean you do not have to file/pay taxes. They could have tax problems here.</p>
<p>You need to have FAFSA completed with your parents’ financial info as well as yours in order to get a Stafford loan and most any aid.</p>
<p>So it will be possible then, yes?</p>
<p>Unless their combined income is below the filing threshold, they are required to file a tax return. “Self earnings” are not exempt from taxes. In fact even if they are low, they probably are required to pay at least FICA taxes on them so should have been filing a return.</p>
<p>If they have not been filing a return when the should have been (which seems likely, but they would probably need to talk to a tax accountant), then you will probably not be eligible for federal aid. If worst comes to worst, I believe there is a way to file FAFSA without parent info purely to be able to take out unsubsidized federal loans. I think parents have to say in writing that they will not provide the information. This would not make you eligible for any need based aid, just unsub loans.</p>
<p>If their income is low, it might be worth them consulting a tax accountant as you may be eligible for aid that would outweigh what they may owe in taxes. They really should do so anyway.</p>