<p>I've been going to USC for 2 years now and have had to fill the FAFSA out every year, as well as the CSS Profile. My parents are divorced and neither are remarried, in case that's important. Normally my mom's AGI is between $22,000 and $45,000. That means my $55,000 schools costs (tuition, room & board, fees, etc...) is usually balanced out by a significant amount of financial aid. This year my mom's gambling addictions have taken over again, and I'm afraid that this means I may not receive any aid at all. When doing the FAFSA 2010-2011, I submitted the AGI from her 2009 tax return, which was $207,536. I'm scared. Her actual income from wages and salaries was only $16,520, whereas the other $185,436 was from gambling winnings. What confuses me, however, is that on the same tax return under the itemized deductions section she has $185,436 worth of gambling losses as well. The total itemized deductions were $196,154. That means she actually made very little income. We don't even have a house or any liquid assets left. I live with my grandparents and she lives with a friend of hers. Does this mean that her gambling addiction is going to cost me my education, or does the FAFSA or the school take into consideration the gambling losses as well as the winnings? And if this does mean I'm not going to get any financial aid, then I'm just wrecked thinking about it. Any help or input would be greatly appreciated.</p>
<p>Have you discussed this with the USC financial aid office? Regardless of what anyone here says, that is who you must talk to. Do so immediately.</p>
<p>"rentof2 is correct. Anything has to be discuessed and cleared with the fin aid office as they have the final say on deciding how unusual circumstances are treated.</p>
<p>For tax purposes gambling wins can be reduced by losses, as long as the net result is not less than zero. In other words, you cannot claim a loss as you can on investments but you can reduce your winnings/gains by your losses. Your mother sure as heck does not owe taxes on that reported gambling income amount. If she is such a big ticket customer, the casinos will have record of her experiences and what she has paid as well as the winnings. The question is whether FAFSA looks at gambling win the same way. You need to ask the college fin aid officers,and or call the FAFSA line that can help you with some questions. The ultimate arbiter is going to be the fin aid officer at the school, however.</p>
<p>Don’t bother calling the FAFSA help line. The regulations are clear — the gambling winnings will be counted into the AGI. You have no choice but to report it as it is. You can file a special circumstances appeal, requesting that the gambling income be looked at as a one-time windfall. It may or may not make a difference in your aid - the financial aid office does NOT have to make any adjustments, and it they do choose to adjust, it is not just deducted from your EFC. The aid officer would have to decide how to treat the money, since she DID earn it. This is professional judgment, so there is no way to know what will happen until you try.</p>
<p>The mother may owe some taxes on the gambling winnings since some of the itemized deductions are probably phased out for 2009.</p>
<p>Kelsmom, wouldn’t the net gambling gain be what is reported on the AGI and therefore on the FAFSA. Does the student have to then report the winnings as additional income? Looking at the forms, I don’t think that the amount needs to be reported except as a net gain.</p>
<p>cptofthehouse: Gambling winnings are reported gross (not net of losses) in AGI and therefore on the FAFSA. Gambling losses, in an amount not to exceed gambling winnings, are an itemized deduction on Schedule A. This is the root of the problem for TXTrojan.</p>
<p>Not that it has anything to do with FAFSA, but since it’s in AGI, it may also be taxable to the State. It is in Michigan.</p>
<p>So sitaution is sad, but you can’t expect taxpayers and full-pay families to subsidize your parents lack of judgment. If you are at risk of losing need-based aid, focus on applying for in-department merit scholarships or applying to schools that have merit-based scholarships that do not consider need to avoid this situation in the future. The power is in your hands and as a mature adult you have to handle this yourself instead of running to mommy.</p>
<p>Bedouin, that was just uncalled for - there is NOTHING in this kid’s post that suggest they are expecting or receiving anything from the mother. She doesn’t even provide housing! But this kid’s education is on the line because of the way the government defines dependent students…and because of her addiction! The correct and mature thing to do is to advise filing for a special circumstances adjustment…not to suggest that a department scholarship is going to fund a $55K bill for an otherwise low-income student.</p>
<p>Are you kidding me with that noise, Bedouin? You’re seriously saying that kids should just have to deal with having terrible parents and that’s just the way it is?</p>
<p>Gosh, let’s just abolish the entire foster care system. It’s not the TAXPAYERS fault some parents suck. Public education? If these were GOOD parents, they’d be able to afford to send their kids to high school without taxpayer subsidy. Medicaid? If these were GOOD parents, they could afford to get their kid to a doctor. Since they’re not, the kid shouldn’t be seeing a doctor. Meth lab exploded? Well, even if there are kids inside, we shouldn’t be calling the fire department…their parents should have known better. Home has no heat in winter? Well, if the parents were hardworking folks, they’d probably have heat, so we should just make sure their kids have a lot of sweaters and blankets.</p>
<p>Yeah, I know, we’re talking about a college student here, but as long as this student is DEPENDENT you need to take into account that their parents can screw them over as badly as they can screw over a minor. And get down off your high horse when you’re doing it.</p>
<p>Cute strawman argument, people. :rolleyes:</p>
<p>I’m not saying that the student is at fault and should be punished. I am saying that the system is screwed up and stacked against her; her mother made bad decisions and no, it’s not the student’s fault but there isn’t really a remedy outisde of each individual financial aid departments professional judgment. If their hands are tied – and they almost certainly are – the student has NO CHOICE but to seek alternative means of financing her education if the financial aid programme that she has been relying on forthwith is falled apart. That is why I recommend pursuing departmental scholarships that are usually available n most campuses. This can help make up the gap between a temporary gap in need-based aid – the one that will exist this year because of her mothers sudden influx of money as a result of gamlbing – for this year without forcing the student to have to drop out.</p>
<p>I guess I should first clarify that I’m a “he” and not a “she.” While that’s not important, I still thought it should be noted. Secondly, I was wondering if there may be a way for me to get independent status. Since gambling addiction is a serious condition with many side effects similar to that of alcoholism, is there a way for me to get the courts to declare me as an independent student based on her inability to properly support me? I’m just trying to seriously consider all of my options. As for the financial aid office, I’ve sent them multiple e-mails and still have not gotten a response. My calls have also been thwarted by heavy call volume. I’m just a bit lost. 
Also, I take no offense to what Bedouin said. If my mother had acted appropriately with her winnings, then there would be no need to even seek financial aid this semester or even the next. Sadly, the ravenous and aggressive way that my mother gambles prevents these thoughts from even entering her mind. I don’t blame her, I blame her mother. Bad habits are generally taught, which is how my mother so easily acquired her addition from my grandmother. However, the cycle of addiction must end with me. I refuse to ever put my future children in the position of not being able to choose a life of higher education. It’s sort of ironic; I always thought parents were supposed to have to convince their children to matriculate. I guess there are always exceptions to the rule.</p>
<p>I don’t think you have a chance of declaring yourself independent. You reside with your parent. Bad parent financial judgement is not a criteria for independent student status. Sadly, there are other parents who have high incomes and choose to fritter the money away on things other than college tuition, or who simply won’t contribute the money they have to college costs. That is not a criteria for independent status.</p>
<p>What you do need to do is talk to your parent(s) about what you are doing after high school AND how that is going to be paid for. Then…you need to make a plan that will work within those guidelines. There are MANY MANY college students out there who are not receiving financial aid OR money from their parents. Some choose to work part time and attend college part time. Some go the community college route and work too. You can make a plan…but the finances DO need to be considered.</p>
<p>Thumper’s advice is spot-on, as usual.</p>
<p>I will add that if you can get your mom to agree to the amount she will contribute towards college, it needs to go into an account where she can’t touch it. She is an addict. She will spend it all in a weak moment if she’s given the chance. It should go into a bank account in your name, or a trusted relative’s name.</p>