If your parents do not meet the requirements for the simplified needs test, any CDs they have that are not in a qualified retirement account would be reported using FAFSA question 91.
Okay so my parents do not own a business, are not self employed and make about $47,000 a year. Are they eligible? Last year we answered “don’t know” but upon research abou where to put the CDs I found that I think we are eligible. If putting yes does that mean we have to file a 1040A? I put yes and then put no to when it asked would you like to list your parents assets. I submitted this and this was already a correction because before I just didn’t list any assists and submitted it but then my fasfa was being verified so I knew I did something wrong. Is it bad to keep correcting a fasfa? Am I going to get arrested haha I’m scared
Because a FAFSA is pulled for verification does NOT mean you did something wrong. Some schools verify every FAFSA, some one-in-three, some at a certain income level.
Which tax form did your parents file for 2015? If it was a 1040A, good. If it was a 1040, they still might have qualified to file a 1040A but just chose another form (or the tax program chose it).
It was a 1040 and I feel like it was being verified because I didn’t list the CDs as assists when before I did. I answered no to do assists exceed $14,000 when the previous year I answered yes
Also my family receives social security from survivor benefits which is like half our income. Does social security make me ineligible for 1040A or 1040 EZ
^?
Are you saying that $25,000 of your parent annual income is SS survivor benefits?
Are these taxed?
@2newuser321. When you say your parents make 47K does that include all the SSI and interest on the CD’s. I think the total income has to be less than $49,999 and this includes all sources of income. I am not sure how much they have in CD’s, but if you do have to report them and the value is not very high, it may not hurt you that much. As far as verification, if you submit tax returns that show interest income it will be clear that this income came from somewhere. This may lead to follow up questions.
Please look up the simplified needs test. Your income needs to be less than $49,999 and you need to ALSO do one of the following other criteria:
- Eligible for a means tested benefit like SNAP or free/reduced lunch.
OR
- Parent eligible to file 1040A or 1040EZ...in 2015
OR
- A parent is a dislocated worker.
If you are eligible for the simplified needs test, your assets will NOT be required on the FAFSA.
If you apply to Profile schools, you will need to include assets.
Our total income combined with social security, salaries, and interest is about $46,000. The security only taxable to a certain extent? Like 10,000 of it is! But the rest non taxable. And yes assets good amount because for retirement…
You should call the school and ask if the SS survivor benefits have to be reported on the FAFSA.
Once more…do you qualify for food stamps (SNAP) or free/reduced lunch?
I’m not to sure. I don’t think so. But I was eligible for sat / application fee waivers
Was there a specific reason your psrents filed a 1040 tax return instead of a 1040A?
You were probably eligible for fee waivers because of your income. That is not a federal means tested benefit…like free/reduced lunch or Snap.
I’m not sure we have an accountant file our taxes. I guess we should call and ask him if we are eligible for a 1040A? I know I am not eligible for 1040EZ because of social security
Also what is unfair is my social security benefits ended this past May which is like 40% of our total income but that won’t show because it is 2015 fasfa when we got them the full year. It’s really messing up my aid
What aid is your SS benefit messing up? You are talking about the FAFSA. Unless you applied to Universitynof Chicago…the colleges you applied to don’t met full need with the fafsa as the only financial aid application form.
The only thing this might “mess up” would be your eligibility for the Pell Grant…which is $5800 if you are eligible for the full amount.
What colleges are you applying to?
What amount of aid were you hoping to get? A free full ride? At fafsa only schools…getting need based aid to cover your full cost of attendance would be unlikely.
My assests leave my EFC at $15,000 but without its $3,000. I am applying to Tulane, UF, UCF, FSU, PSU, and Tampa
?