<p>So I get that generally you're supposed to send your FASFA form in during Jan. Or Feb. once you get your tax information, but what do you do if your parents have stocks? They don't release that information until around March.</p>
<p>I apologize, I just realized I used FASFA instead of FAFSA throughout the whole post.</p>
<p>If your parents have realized capital gains or losses through the sale of stocks, they can log in to their brokerage account today and see their total gain/loss for 2012. They don’t need to wait until the 1099-B forms come out, which are generally sent at the end of January. If your parents didn’t trade any stocks then there would be nothing to report on your taxes, but they’d need to include the value of their shares as of the day they file FAFSA. This again can easily be looked up online.</p>
<p>We receive our 1099s re stock sales by the end of January.</p>
<p>That’s interesting to know! Our accountant said we had to wait until they came out, and he said they come out on March.</p>
<p>You use estimates on your FAFSA now and update with the actual numbers once you have them.</p>
<p>Our accountant said they don’t look at the estimates, so there’s no point in doing it until you have the exact information.</p>
<p>That’s why I was curious as to what others and in this situation.</p>
<p>Your accountant is wrong. The thing he doesn’t apparently know is that some forms of need based aid are given on a first come (meaning first applied) first serve basis. Federal work study, SEOG, and Perkins loans are a few examples of funds which are limited…and are awarded on a first come basis. Completing the FAFSA with estimates, and submitting to your colleges gets your place in the application line held. You don’t want to apply later and find out these limited availability funds have run out. Share this information with your accountant so others will benefit from it.</p>
<p>Just seconding that your accountant is wrong. Our kid’s school posts financial aid on the school portal based on the estimates, then the numbers change slightly when taxes are done. But we are in line for ‘work study’ and I would think would be for other things if we qualified for them. You need to have something in by the school’s deadline.</p>
<p>Just adding…many schools have later deadlines. YOU want to make sure you are one of the first in line…not the last in line. The year your child is going to be a freshman in college is NOT the year to do anything at the last minute…including the taxes, and the financial aid application forms.</p>
<p>Wow, our accountant obviously doesn’t know that the estimates save your place! So just clarify, we would still be in front of some people that have the exact numbers? Thank you so much for this help! So we should use estimates to save our place, and then use the exact numbers when we get the stocks information?</p>
<p>Yes, you would be in front of anyone who submits FAFSA after you do. The initial aid package will be an estimate, but it effectively puts a hold on that money for you (like the hold on a credit card when you stay at a hotel). If you’re EFC ends up higher, they will reduce your package, if it’s lower hopefully they will still have enough to meet your need - but you would at least get the estimate instead of nothing because they ran out.</p>
<p>However, you may need to check with your accountant and ask what specific forms he’s waiting for. Many brokerage statements, and similar forms may be available online now. Others, like K-1 forms if your parents participate in a pass-through entity, or trusts, will not be available yet. In those cases, you have to wait for their returns to be completed, so they can send the K-1. Be aware also that some brokerage houses have issues with their statements, and have a habit of sending amended forms - two tax preparers I work with invest with one company that has done this each of the past 4 years, and last year they amended twice, which meant they still had to amend their own returns though they had waited for the (first) amended forms.</p>
<p>Complete the FAFSA with estimates, and don’t worry about the accountant. He won’t do their taxes until March, but you will have your place in line. If he argues, let him know the schools in fact have deadlines too (and many are before March).</p>
<p>Alright, thank you so much for all of your help! That definetly will save us some money. This is really good to know!</p>
<p>It really will depend on the school. it seems like many schools will estimate aid and you will be in front of the line using estimates. At my daughter’s school, if you are selected for verification, they do not do do an estimated award and carry on awarding those limited funds. We fond that out the hard way her last year of school. (and yes she asked why she had not got a couple of awards she had got, and when they looked at her papers they told her it was because she was verified).</p>
<p>Nevertheless, I would file FAFSA as early as possible and then do the taxes as early as possible.</p>