Hello! So to cut to the chase, parents had some gambling earnings that literally doubled our income, pushing us to a little over 100k for last year’s income taxes. However, those 50k of earnings were quickly lost back to the same casino. I’ve already submitted my FASFA, and since it asks specifically for the adjusted gross income, I put 100k. Now my question is, since those gambling losses are documented, is there any hope for getting more financial aid based on that change of income, or am I just screwed my first year of college (since it said that my EFC was 021000 roughly). Just for reference, I am applying to mainly UCs but also privates such as USC. Thank you for your help!
Your parents won that $100,000. It’s not the schools issue that they then gambled it away and lost it.
It’s income.
It is not the schools issue that your parents gambled the money away, just like it would not be the schools issue if I went on a huge shopping spree and spent half of my income. It is still income.
What you can do is request a special circumstances review to see if they will remove the gambling income from the AGI and put it in assets, instead. This can sometimes result in more aid, but it depends on individual circumstances. It’s a Professional Judgment call, and each school will have its own policies on whether or not it will make that adjustment.
2 Likes
Seems like you may want to make a financial aid appeal to ask for net rather than gross gambling winnings to be used for that year’s income. Whether they colleges will do that is another question entirely.
For IRS purposes, gambling winnings are income (i.e. become part of AGI), while gambling losses up to the amount of gambling winnings can be a schedule A itemized deduction (i.e. not part of AGI, but deducted later): https://www.irs.gov/taxtopics/tc419
1 Like
But here is another issue…this time, your parents gambled away gambling earnings…what will happen if they gamble away their income?
Can you afford this college?
2 Likes
You’ll need to go to your financial aid office and explain what happened. They should be able to make that adjustment for you. No guarantee of the outcome. Good luck!
Well, this is not you fault, neither schools’ fault. All responsibility lays on your parents and, honestly, i doubt that you can get any financial aid. You see there, the problem is that when you’re gambling in casinos such as [suomikasino kokemuksia](https://casinoscroll.com/) you have to gamble responsible. What does it mean? Well, you have to set the limit of losses. Each casino works to EARN money, not to give them. So chances to win are really small. If you’re the lucky one or chosen by the gods, you will have an opportunity to win. What’s next? STOP. You’ve won. You have your money now. Chances to double them are significantly smaller due to the statistics and probabilities. This is the reason why casinos have mostly bad reputation. Because people can’t gamble responsible. Again, it’s the coin with two sides: people who gamble with sick obsession are simple food for casinos and the main source of income along side with ads and affiliate programs. People who gamble responsible and win - put casinos back in earning and revenue. If person can’t hold back stupid desires and instincts - he or she should stay away from gambling. I myself gamble pretty often. Sometimes to relax, sometimes to try and earn. But never do i gamble because of obsession or desire to double the income or take back what i’ve lost. Your parents should keep it in mind.