I live in a single parent household where it’s just me and my dad. My dad is in his 50s and 12 years ago he decided he earned enough money to live the rest of his life. So basically our family had 0 income for the past 12 years. I’m wondering how much financial aid I will qualify for? Am I considered low income? Obviously my dad has a ton of savings, but I don’t want him to pay for my education .
Your father’s assets will be considered, and if your mom is alive, her assets and income might be considered, also.
You are not low income if your family has significant savings/assets etc. As noted above if your mother is alive and earning money her salary could count as well.
From another post it seems you are a HS senior. Haven’t you sorted this out yet? If not it is certainly have the time to have the money talk.
But, this is one of those situations that if he goes to a FAFSA only school, he may get substantial aid. If the income really is $0 (income includes interest and dividends so it may not be $0), the student would qualify for a Auto $0 or simplified assets on FAFSA, thus receive a Pell grant and maybe some other need based aid. We don’t know how his father has invested his income. If it is all in post tax investments or IRA’s, he may be low income.
OP, you need to look at (or ask your father) what the AGI is on his taxes. That will be the number your simplified FAFSA would be based on. If you chose a CSS school, all bets are off and they will look at assets.
No income at all? Or income only from interest off of investments. There is a difference.
How does your family pay its day to day living expenses? Where does that money come from?
How much interest income does your dad have on his savings?
Does your mom work?
All of these question answers will impact what folks here can tell you.
And supposedly you already got accepted to Colorado State.
Did you complete the FAFSA with your dad? If so, what was your FAFSA EFC.
They divorced 15 years ago. My mom and my dad have no contact. Even if my mom makes a lot she will not pay for my college , she has her own family and doesn’t care about me at all.
Also on the fafsa it says the house we live in does not count as net worth. Also my dad put all his earned money from earlier years in a offshore account earning interest since there are non in the U.S. the money has been offshore for more than 10 years. The IRS have no idea how much he has. Only the amount he wired to his us bank account
It appears that your father can afford to pay and that he and you are trying to avoid that. Either that or you are bored on a Saturday afternoon.
Some colleges will consider your mom’s income and assets, even if you have little to no contact with her.
And some colleges will want to know your dad’s assets, even if they are in offshore accounts.
It doesn’t matter where your dad has his money socked away. It could be on the Moon.
Listen again…it is considered FRAUD to knowingly provide false information for financial aid gain. FRAUD.
Another thing…if your income is really $0, you will most definitely be verified when you apply for need based aid. You will need to document HOW you are paying your day to day living expenses…rent or mortgage, utilities, taxes, health insurance, food…everything.
Financial aid departments aren’t stupid. If someone claims their income is $0, they will be asked to prove how they fund their day to day living expenses.
The money in the off shore accounts is not income, but it is an asset and the interest earned on it might be income for the year. Again, look at the AGI on the tax return for 2016. That’s the yearly income.
If you are going to Colorado State, it is a FAFSA only school and they will only consider your father’s household’s income. If it is low enough for Auto $0, none of the assets would be considered. Your primary residence is not considered.
Did you complete the FAFSA? That is the only way you are going to receive FA. If you are a Colorado Resident, you should also get about $2000 from the state fund https://highered.colorado.gov/finance/cof/
It sounds like this parent has NOT completed a tax form…as the poster says the IRS doesn’t know about this money because it is offshore.
If no tax return was completed…and the parent will need to complete an IRS non-filers statement. The reasons for NOT filing are listed on this form…and the parent needs to choose the one applying to him. “my money is in an offshore account” is not one of those reasons. The parent would likely choose that he was not required to file because he didn’t have any income.
BUT that takes us back to the question bout how the family is paying their bills with $0 income. This family will need to have clear documentation on how exactly the are making ends meet for living expenses on $0 income…when verification comes their way.
And yes…Colorado State is. FAFSA only school. Assuming an EFC of $0, the only guaranteed aid would be $5900 Pell Grant, $5500 Direct Loan, and possibly $2000 of State grant funding.
The cost of attendance is $26,500. That aid above is half that cost.
With $0 “income” where is the remaining money going to come from? When you can pay that bill…don’t you think the college will notice? They might not the first year…but that $13,000 that gets paid from your $0 income will need to be explained…at some point when you file your next FAFSA. It’s money being paid by someone…
The IRS have no idea how much he has. Only the amount he wired to his us bank account<<<<<<
LMAO. If this is the actual case, don’t apply for FA. Speak to daddy first.
You definitely need to talk to your father first. Just because his money is offshore doesn’t mean he doesn’t owe taxes. As a US Citizen and resident, his taxes are based on “worldwide” income. He might or might not have owed any taxes for the past 12 years, but he still probably had to meet filing requirements, and if he has more than $10,000 in a foreign account, he is required to disclose it. If he doesn’t, he is committing tax fraud. And don’t assume the treasury department doesn’t know about those accounts either - if he’s transferring money into a US account, there is a paper trail or an electronic record. To be honest, I wouldn’t assume your father isn’t filing taxes and reporting his worldwide income - he simply might not be sharing that information with you. I he hasn’t applied for free lunch for you, or medical insurance based on your “low income” then I doubt he expects you to qualify for financial aid for college based on that low income either. If his offshore accounts produce enough income to live comfortably, he has significant assets, and they will have to be included on your FAFSA. You really don’t want to have him accused of tax fraud and be accused of financial aid fraud yourself.
It really sounds like a kid speaking without the actual facts, as OP is a senior, I suspect the money situation is already sorted, but dad (wisley, it would seem) doesn’t share the details with alvin.
Has dad been filing taxes? If so, he has to report all worldwide assets and income - otherwise it is fraud.
If not, you are going to have trouble demonstrating zero income. Dad will be forced to file. He may not want to. Then he will be forced to pay.
I know of families that choose not to file FAFSA because they do not want to open their finances up to scrutiny. That is their choice. Your dad needs to let you know ASAP what your situation is.