Financial Aid Question! Urgent !!

<p>I will appreciate anyone's input on this !</p>

<p>So my mom is a real estate agent and last year (2010) she sold A LOT of houses.... more than she usually does per year. Her gross income was 150k, but her original income is usually 60k or lower . </p>

<p>My question is if my parents haven't filed their 2010 tax return, can they use the 2009 tax return instead? </p>

<p>More questions ><
Fafsa required us to put info for 2010, and since they see that my mom made 150k just by herself along with my dad stable income of 75k, they won't give me much aid, correct? Is there a way to show them that my mom's usual income is not 150k but way less than that? I have two other brothers going to college so this is very important that we get as much as as we can.</p>

<p>Thank you for reading !</p>

<p>No, you cannot use 2009 taxes, FA for the 2011-2012 year is based on 2010 taxes. They do ask for 2009 taxes for reference, but I’m not sure how they are used in calculating need (perhaps someone else here knows). </p>

<p>You can contact a school and tell them that 2010 income was unusually high and why, but it likely won’t do much good. Next year if your mom’s income goes down, your FA will go up, that’s the way the system works.</p>

<p>Students are often told to use the 2009 taxes to complete the 11-12 FAFSA, then go in & update when the 2010 taxes are completed. In your case, this would not be wise advice, since the 2010 income is not similar to the 2009 income. The best thing to do is estimate for 2010, then update later.</p>

<p>As entomom points out, you would have to request a special circumstances review from the school. She is correct that it probably won’t make any difference. Your mom DID earn that money, and she COULD earn that much again this year. If she doesn’t, that will be reflected on next year’s FAFSA.</p>

<p>If your mom writes off expenses on her return, her income may not be that high. You will be using the amount on line 12 of the 1040, not the actual amount earned. That may help. Then again, it might not make any difference … I don’t know the COA for UC’s, but I would bet the family EFC is going to be high enough that even divided among the 3 in college the only “need based” aid will most likely be that instead of all unsubsidized loans, some may be subsidized. </p>

<p>Even at the $135,000 they “normally” earn, your parents’ EFC would most likely be at least $36,000 … or at least $12,000 each student. That probably is too high for any UC grants (although I could be wrong - others will know better than I).</p>