<p>My mother reports cash income but she switches job often, and the jobs she work at, they only give cash, no w2. It is also hard for her to get her employer(s) to prove something because they don't want to do it if my mom keeps switching jobs. My dad is also in China on medical bills and receiving $ from my mom. She can prove all that but I don't think she can prove the tax returns correctly since there is no w2. Can anyone help me? What if I get picked for verification? </p>
<p>Your mom sounds like she is self employed, and gets paid by lots of different people. She should be keeping good track of this income in some way. She gets paid in cash, but she is supposed to file taxes based on her total earnings for the year. Employers are not required to give a person a 1099 for small amounts of work. But your mom should still be keeping track of every penny she earns.</p>
<p>Yea, the lawyer who files her taxes estimates her income based on a lot of information, but what if FAFSA asks for proof? Wouldn’t we be screwed? </p>
<p>Or should I not be too specific? </p>
<p>If your mom is filing tax returns, then verification shouldn’t be a problem. You can use the FAFSA Data Retrieval Tool to import the tax info from the IRS to FAFSA. Generally that satisfies verification. You can also send a tax return transcript but the DRT is easier. </p>
<p>Schools that use CSS profile or their own form do often require W-2s or 1099s in addition for institutional aid but hopefully the lawyer is doing things properly and there is sufficient doc for you to provide.</p>
<p>It looks like you are planning to apply to some schools that also use the Profile form. Just keep in mind that the Profile scrutinizes your finances much more than the FAFSA does. As long as your mom can document her earnings, you won’t have an issue. </p>
<p>You ask about being specific? What do you mean? The info on your financial aid applications is supposed to be VERY specific and accurate.</p>
<p>I mean like on FAFSA, there’s no place to type additional information.
Does CSS profile ask for proof? </p>
<p>Your COLLEGES will be the ones to ask for documentation. Maybe they will and maybe they won’t. BUT if a school asks for information, you need to be able to provide it. </p>
<p>You are applying to some expensive colleges, and it sounds like you are hoping for some significant need based aid. The colleges awarding generous need based institutional aid are well within their rights to verify that the information you are providing on the financial aid application forms is accurate. </p>
<p>If you are being honest about your finances, you have nothing to worry about.</p>
<p>If your mom is self employed, and she takes business deductions as part of her taxes, you DO need to know that some business deductions allowed by the IRS for tax purposes are added back as income for financial aid purposes.</p>
<p>I am looking for the colleges that will only make me pay a few thousand through the net price calculator. Do you know what type of info they may ask? Like if I talk about the $ my mom sends to my dad in the add. information section in CSS profile.
And what do you mean by added back as income? </p>
<p>Some deductions allowed by the IRS for self employed are NOT allowed as deductions for financial aid purposes. These are added back into your mom’s income when the schools compute financial aid awards.</p>
<p>Your parents are married, right? Your mom is supporting her husband. That is what LOTS of married folks do…one spouse supports the other. Would you think that ANY parent should be able to deduct the costs of support for their spouse? That is not usually the case. Your dad is living abroad…why is that? The best you might get is a special circumstances consideration whereby the college considers your dad’s unreimbursed and necessary medical expenses. These will need to be documented…and carefully. Also, keep in mind…if your mom’s income doesn’t seem enough to support these monies being sent abroad, that WILL raise some eyebrows.</p>
<p>Why is your dad in China? What is the necessity for this? Or is this a choice (you don’t have to answer here…but colleges may view this as a choice…not a necessity).</p>
<p>And if your mom doesn’t keep track of her income…what makes you think she I’ll have the necessary documentation for your dad’s medical bills? You will need bills submitted by the medical folks, statement of necessity for this medical intervention, submissions to insurance (if applicable), and clear records of the balances paid by your mom. A note on the Profile saying “my mom paid $10,000 in medical bills for my dad in China” will NOT satisfy the colleges. They will want PROOF.</p>
<p>One other piece of advice…the net price calculators will NOT be accurate in your situation. Your mom appears to be self employed, and it sounds like your family is maintaining two residences. This is not a straight forward financial picture.</p>
<p>Well yea my mom and I are renting this place we live and my dad is living by himself in China. He was rejected after the immigration interview 3 years ago even though we are legit. </p>
<p>We do have medical bills but not all of them. And if that is the case, what should I do? Not mention that she sends money to him? </p>
<p>You’re freaking me out by the way. </p>
<p>I’m not meaning to freak you out. I’m just trying to state the facts as I see them. </p>
<p>You absolutely can mention those medical bills. BUT you will also absolutely need to provide firm documentation of what were necessary medical bills, and the exact amounts you paid out of pocket for them. You will likely need to produce both the bills from the doctors, and some evidence of the amount your mom actually paid.</p>
<p>The medical bill issue is not used to compute your financial aid award. It might be used to in a special circumstances consideration request. This is when you ask the college to reconsider your financial aid award based in extenuating financial circumstances. Keep in mind, these are handled on a case by case situation. Some colleges do not do them at all. Even if a review is done, there is no guarantee that you will receive additional financial aid.</p>
<p>How much can your parents contribute to your college education annually? You need to ask your mom this question. She should have some idea IF she can help you with college costs. </p>
<p>Yes she can afford 4-5k a year but she just has to work harder, she’s really sick and kind of unemployed atm, it all changes.
Are you saying if I don’t mention the medical bills and my mom sending my dad money, they won’t care? I think we will still get a lot of financial aid regardless. However, how would I explain the noncustodial parent issue then? My dad is still unemployed. </p>
<p>You need to mention your dad at schools requiring non-custodial parent information, unless your parents view themselves as separated.</p>
<p>However, if he has no income, this won’t reduce your need based aid.</p>
<p>Your mom will file her taxes for 2014, right (and ASAP after February 1)? Is her income sufficiently low that you will qualify for need based aid? Does she HAVE $500 a month to give you towards college costs?</p>
<p>Yes she has $500, I may have to work though.
So do I have to prove that my father has no income? If so, how? My mom and dad are working on the proof that shows the house that we “technically” own is owned by the government. But I guess I won’t mention that my mom sends money to my dad and other misc things? </p>
<p>You can mention your mom sends money to your dad. But if you expect the college to consider that in your financial aid equation, you will need to document the reason for this.</p>
<p>If your father has not income, he has no income. Does your mom file a joint tax return with your dad? She can do so even if he earns no money. </p>
<p>The college might require a non-filer statement if your dad does not complete taxes. I’m not sure if this would be applicable since he is not a U.S. Citizen and resides abroad.</p>
<p>I don’t know anything about joint return, he lives in China.
Okay so if I mention something, they would ask me for documentation or no? Or I should just not mention it at all to avoid hassle.
I’ll just have noncustodial parent profile to worry about. </p>