Just got done submitting fasfa for my daughter and EFC number seems way too high. It’s over 22600. I am not sure why. My husband and my combined income is less than 80k (year 2018)which is about the same amount at last year(year 2017). Our daughter is doing co-op and got 22k scholarships and need base grants but only about $6500 was considered qualify education expenses so the she paid tax on the remaining balance. Her co-OP w-2 was 19k (9k for hours she worked and 10k for housing which the company paid directly to the landlord) anyways her scholarship+grants+ co-op(w-2) was totally 35k . So since her income was over 6I we couldn’t claim her as our dependent. 35k-5500(ira)=29500-12k(standard deductions) = $17500 was her adjusted income.
Does anyone know it cause of her scholarship& grants or co-op marking the EFC to high?
We have a similar income and our EFC is around $16,000 with household of 4, 1 in college.
Isn’t coop earnings subtracted on the FAFSA for the student?
Taxable scholarships included in AGI of student are also subtracted.
You have to answer these FAFSA questions after the data retrieval from the IRS because everything is lumped together on the wages line of her 1040 and you need to make sure to list those amounts in the correct place.
There are certain tests you need to meet to claim your college student as dependent on taxes.
Relationship test, support test, etc.
Her income alone doesn’t disqualify her, it depends how much she spent on her own support as far as I know.
Scholarships and grants doesn’t count towards support I believe.
it’s for next year. our income was about the same last year and EFC number was around 5000-6000. I know it has something to do with her scholarships ans co-op. I will have her go to financial office when she goes back to school next week.
With $80k income you wouldn’t have a FAFSA EFC of $6,000, unless you had two students in college.
@“Erin’s Dad” the link I posted for question 43 f of the 2020/21 FAFSA seems to say that coop earnings are excluded from student income. If you look at the dependent student
worksheet on page 14 in the 2020/21 FAFSA formula PDF (you linked the 2019/20 one btw), it will ask for student AGI and income from working, and then ask for items in questions 43a-43f and these are **subtracted/b from taxable and untaxed income to arrive at Total Income.
But I would check with the college just to be sure. It might be that just her coop wages are excluded, not the housing.
A student gets an income protection allowance of around $6,840, plus deduction of federal, state and social security tax paid, and then their available income is assessed at 50% I think.