<p>Hi There!
My oldest is heading off to college in the fall. His dad and I are separated and I am not sure if we will file our taxes joint or separate. I am self-employed and earn waaay less than my spouse and my son lives with me. I filled out the FAFSA based on last year's tax return, so all good. I understand that I need to go back and update the info once the tax returns for '13 are complete. In the meantime FAFSA says I have successfully completed the form. I just want to know if time is still a concern in getting the taxes filed. His dad is not very good at supplying needed info and I am worried that I won't get his info to the tax preparer until late March. I can file separately if it is going to cost us some financial aid but I expect it will also cost me more in taxes to file separately. It may well be with the savings in aid (and headaches). Thoughts?</p>
<p>Well…you do need to understand that any financial aid award based on 2012 info will only be an estimate. The finalized financial aid award will be based on your amended FAFSA which will reflect YOUR 2013 tax return information. </p>
<p>And yes…if there is a change, your estimated financial aid package CAN and WILL change.</p>
<p>Please talk to the dad, and explain that your kiddo needs his REAL financial aid award, and in order to have that by May 1 when he decides where to matriculate, the taxes need to be filed ASAP.</p>
<p>If you used joint tax info from 2012 to estimate 2013 then that’s incorrect because your son’s fafsa should only reflect your individual tax info from 2013 in the end. If you do file taxes jointly for 2013 and your fafsa is selected for verification you won’t be able to use the DRT or a tax return transcript to satisfy verification. You will have to provide some other documentation of only your individual income for 2013.</p>
<p>Annoyingdad is correct. Since you are separated, the ONLY income should be YOURS, not the other parent. </p>
<p>The final financial aid package will depend on your verified FAFSA data. I was told that it is better to submit it early to get your form in the system. You just need to verify the data by the deadline later on unless you expect a big difference. Nevertheless, I just did the DRT update and found I made a mistake originally on FAFSA. The EFC went up much higher. It would be better to find out error like this earlier as you don’t want to have a last minute surprise particularly if you are deciding among schools based on their financial aid package.</p>
<p>The original question is about tax filing status. You must follow the choices and select the correct status as of your marital status on Dec 31, 2013, which would be married. You can then file together or ‘married filing separately’ which, in MOST circumstances, will result in paying more in federal taxes as some credit are disallowed or the qualifications for them are lowered by half (child credit, EIC, etc).</p>
<p>If son is only living with you on the day you file FAFSA, you only consider your income on the FAFSA. Others are right that you will probably have to verify it manually as your return will show both incomes. You can do that by submitting W-2s, and information on half of any co-owned assets. </p>
<p>Much more of a paperwork headache, but you may save some money on taxes and still qualify for financial aid.</p>
<p>You may also want to contact the Financial Aid office afterward as you have a big change in family status that may impact your financial situation.</p>
<p>First of all FAFSA and tax filing status are not necessarily going to follow the same rules. </p>
<p>For your tax filing status, you need to check your state rules and find out if you are considered separated as of 12/31/13. From IRS publication 504(2013), I quote: "You must follow your state law to determine if you are divorced or legally separated. " You might also be permitted to file as HOH. These are issues you need to bring up with a tax expert in your state. </p>
<p>For FAFSA purposes, if you are separated from your spouse on the day you complete the FAFSA, then you are separated and only your info is needed even if you file Taxes jointly with your spouse. The rules are different from tax filing status. You are the custodial parent of your son if he lived with you more than with his dad for the year preceding the date of the FAFSA filing. </p>
<p>If you filled out the FAFSA with both parents on it rather than just you and you were separated on that date, then you have an error that needs to be corrected on that form. It can make a huge difference in aid possibiities, especially if you are low income.</p>
<p>Thank you all for your quick responses! I did indeed only supply my tax info on the FAFSA as custodial parent and since I file Schedule C, I can verify my income. I estimated my expected earnings for '13 on the FAFSA form as it allows and am less worried about the amount of aid changing than I am missing an opportunity to get the aid.
My question is about timing - do I need to have the tax return filed close to the March priority deadline or do I have some time to motivate his dad to provide his tax info, and to file jointly which is my preference for reducing my tax liability.</p>
<p>The earlier you actually file taxes and update the fafsa with actual numbers and provide verification doc if required, the more likely you will have an actual aid offer, rather than an estimated one, before you need to choose among schools. I don’t think anyone can really say anything more specifically about it than that.</p>
<p>For tax status, are you permitted in your state to file as single, or do you not meet the requirement thereof? I ask because HOH status is probably the most favorable for you. Also, you then don’t have to involve the dad.</p>
<p>Annoyingdad has said it. Some schools specifically say they guarantee to meet full need, only if the deadlines are met, and when you check their data, there are kids not getting full need met. If you have an issue, you might want to talk to fin aid and if they tell you that there could be a problem, you might just want to file separately and do a 1040X amending it later when your DH gets around to agreeing to file with you. You would then provide, the yet again amended, info to the school, by then you’d know which one, for possibly, yet another revision. Ironically, you’d probably do better aid wise filing married separately because the fin aid formulas will subtract the tax from your income and you get more tax generated filing that way.</p>
<p>If you can file HOH it will almost certainly be better for you tax-wise and it will allow you to complete FAFSA on your own schedule. Worth consulting an expert on that, I’d say. Here are the IRS guidelines on that: <a href=“Publication 501 (2022), Dependents, Standard Deduction, and Filing Information | Internal Revenue Service”>Publication 501 (2022), Dependents, Standard Deduction, and Filing Information | Internal Revenue Service;
<p>I don’t qualify for HOH this year but next year my daughter will be a senior in high school and I will be applying to grad school. Head spinning, but thanks! Better armed with information!</p>