So my parents have money in certificate deposits, however, the money is solely for retirement? Where should I list this on my fasfa. It is really preventing me from receiving aid I believe. My parents make less than $50,000 a year
When you do the fafsa, does it ask for parent assets?
Any chance you qualify for SNAP, free or reduced lunch or some other means tested benefit?
Can your parents file a 1040A tax form?
mommdc
January 26, 2017, 2:09am
3
Did your parents file a 1040A tax form in 2015 by any chance? Or do you qualify for reduced lunch at school? Then you might qualify for simplified needs test, and then assets won’t need to be reported.
quoted from: https://studentaid.ed.gov/sa/sites/default/files/2017-18-efc-formula.pdf
Which students qualify for the simplified EFC formulas?
(1)
For tax filers, use the parents’ adjusted gross income from the tax return to determine
For non-tax filers, use the income shown on the 2015 W-2 forms of both parents (plus
.
mommdc
January 26, 2017, 2:11am
4
But savings that are not in qualified retirement accounts, would normally be reported as assets.
Certificates of deposit fall under investments I think.
How do you know if you are qualified to file a 1040A??
I read somewhere that you are eligible if you make less than $100,000 a year? And don’t own an individual business?
Also as of May 2016, since a loss of social security benefits will be a loss of $15,000 per year
mommdc
January 26, 2017, 2:20am
8
https://www.irs.gov/taxtopics/tc352.html
some info quoted from above link:
you may be able to use Form 1040A if:
Your income is only from wages, salaries, tips, interest, ordinary dividends, capital gain distributions, taxable scholarships and fellowship grants, pensions, annuities, IRAs, unemployment compensation, Alaska Permanent Fund dividends, and taxable social security or railroad retirement benefits.
The only adjustments to income you can claim are the IRA deduction, the student loan interest deduction, the educator expenses deduction, and the tuition and fees deduction
You don’t itemize deductions
Your taxable income is less than $100,000
The only tax credits you can claim are the credit for child and dependent care expenses, the credit for the elderly or the disabled, education credits, the retirement savings contributions credit, the child tax credit, the additional child tax credit, the earned income credit, and/or the premium tax credit, and
You didn’t have an alternative minimum tax adjustment on stock you acquired from the exercise of an incentive stock option
You can also use Form 1040A if you received dependent care benefits or if you owe tax from the recapture of an education credit or the alternative minimum tax.
Would anyone agree? I am kind of scared to put this because I don’t want it to be wrong and I know that obviously fasfa is something that you can’t put inaccurate information on
But savings that are not in qualified retirement accounts, would normally be reported as assets.
Certificates of deposit fall under investments I think.
Qualified retirement accounts can be invested in CDs.
So what does that mean? ^
Ahh help I don’t want to get in trouble for listing or not listing something wrong
mommdc
January 26, 2017, 2:38am
14
@BelknapPoint , yes you are right. I took OP’s information, “money in certificate deposits”, as invested not in qualified retirement accounts. Maybe s/he can clarify?
@newuser321 When you go through the FAFSA, just answer all questions honestly. Can your parents help?
mommdc
January 26, 2017, 2:38am
15
The income and tax return relevant to this FAFSA, is the one from 2015.
Qualified retirement accounts are not a reportable asset on FAFSA. So if you are required to report assets (i.e. you don’t qualify for the simplified needs test), you will need to find out if the CDs are in a qualified retirement account.
I don’t believe the CDs are qualified retirement accounts. Thu are just in the CDs and they know thy are using it for retirement but I believe I qualify for sayin no to reporting assists?
Does anyone know which line you report your assists?
I believe your PARENTS need to be eligible to file a 1040A…not the student…as one of the criteria for being eligible for the simplified needs test.