<p>My father makes the majority of his money working full time as an exterminator for a large company. A few years ago, he and a friend started their own little company on the side, from which he received about $4000 in 2012. The entire company itself wasn't worth more than $20,000 and they didn't employ anyone else, but they did file taxes in 2012. Due to the partner's personal circumstances (no financial reason) the partners decided in November to dissolve the company and split the assets down the middle. At that time I'd already applied to two schools early action and I'm working on my regular decision applications now (most of my schools require CSS and parents' tax forms). Should I inform the schools I applied to that the company no longer exists? Should I still send in business tax forms to the schools I apply to next? Again, it existed in 2012 and through most of 2013, but will not exist or be contributing to my father's income in 2014.</p>
<p>A lot of things change for a lot of people in 2014 or whatever the year is that follows the one for which financial info is filed. Your aid is going to be calculated on what your family income was for 2013 calender year and the assets on the day you filed the form. Whatever happens in 2014 isn’t going to matter a whit for the 2014-14 school year unless is it is something that qualifies for some Professional judgement such as unemployment (displaced worker) ,death, catastrophe, disability, etc. When you complete the FAFSA and the CSS PROFILE, after 12/31/13, you and your parents no longer have to use projected and estimated figures for the year, but actual ones. You should contact the schools to which you’ve already sent PROFILE estimates and ask how they want the changes to be reported. Some might even have the process on their web sites. An ED school, and any school requesting early PROFILE info is well aware that the numbers they get are not accurate since the year is not over and estimates are used and they have their own ways of having applicants report the actual numbers. It’s up to them as to what the timing is and how they want the changes reoported.</p>
<p>If your father is now unemployed and has little or no income, you should let the schools know this as this might be something that Professional Judgement could be used to mitigate the numbers being used from 2013. Usually, the unemployment situation has to be the status quo for a while, not just a month or a few months. Again, it’s up to each school.</p>
<p>We’re talking about a pretty small income difference, the money my father would have made from the company in 2014 (a couple thousand) will probably still come to us through informal jobs off the books, the difference is it’s just not going through the company. The thing is they’re splitting the company’s assets right now too, so that’s maybe $10,000 we’ll gain from that. My dad made 46K last year including money from the company and my parents have next to nothing in savings. Do you still think the difference is large enough that I should contact the schools and report it? Thanks for your help!</p>
<p>If you are talking about assets only, there is an asset protection allowance for your parents which is more than $10,000 a year.</p>
<p>Here is the thing. At many PROFILE schools that already have your info, there will be a a comparison of sorts with the FAFSA. You have yet to file that as it is not even available until 1/1/2014. The FAFSA and the IRS 1040/attachment info have to jive in terms of income numbers when verified. Some deductions that are allowed for taxes may not be allowed for FAFSA purposes, so they will be added back in. So this can affect your financial aid. Be prepared for that. Each school does things differently so blanket advice about this cannot accurately be given. But when financial aid officers do start giving out federal money, they have to go by FAFSA guidelines for that, those numbers will come into play as things such Work Study, SEOG, STafford, Perkins, maybe state money, PELL all involve FAFSA figures as well as the school PROFILE numbers. </p>
<p>The schools will likely contact you if additional info is needed. CHeck their fin aid websites regarding what their rules are for estimated PROFILE submitted early, before the end of the year, and how final acual numbers should be reported.</p>