<p>Tomorrow I'm going to help out a mom fill out her first FAFSA. Shouldn't be too hard, but she has some circumstances I haven't directly dealt with, so I was hoping for some general info.</p>
<p>She is getting divorced, but is not yet divorced. Her (ex) husband left the marriage, and the home, about 8 months ago. He did all the financial stuff, and she's a bit at sea with all this. She earned only about $17,000 last year, has her last paystub. The husband earns somewhere around 100K. She tells me that they'll be filing married/jointly for 2010.</p>
<p>When she goes to fill out the FAFSA, as I understand it, she will provide only her income info. (She has no assets as far as I've been able to learn -- even her home is being foreclosed on, although I know for FAFSA purposes the house isn't relevant anyway.)</p>
<p>So am I correct in understanding she will use only her income info even though they'll be filing married/jointly for 2010? And if she's selected for verification, she'll send a copy of their tax return with supporting docs (her own W-2?) to support her portion of that income?</p>
<p>(She also needs to do the CSS Profile, but first we have to get through the FAFSA. The husband will fill out the NCP form for the Profile, and does expect to help their daughter with her college costs.)</p>
<p>I'd appreciate if there's anything else I should know about a newly-single/separated custodial parent with regard to FAFSA filing.</p>
<p>I think that you have a good handle on it…just separating out her income/assets should be enough but she will have to enter her child support as untaxed income. If she can file 1040A or is receiving benefits from any of the federal means-tested programs (food stamps, HEAP, free/reduced school lunches) she may qualify for an auto 0 EFC. Btw, I have to wonder why she would want to file jointly…it sounds as if she should file HOH and would probably pay little/no income tax and qualify for an Earned Income Credit. You might suggest that she run her numbers through separately before making a decision on that.</p>
<p>Thanks, sk8rmom. I wondered too why the married/jointly filing status. I expect it’s her soon-to-be-ex husband that wants that filing status for some reason. I think she’s very inexperienced with all things financial and is just taking the path of least resistance. I’ll ask her what that filing status choice is based on.</p>
<p>Also, thanks for the info on the child support. I don’t know if she’s receiving alimony, but I’ll find out tomorrow. Do you happen to know how that would be handled?</p>
<p>Actually, of course she wouldn’t be receiving alimony since the divorce is not yet a done deal. She may be getting some kind of financial support informally, though… so I suppose that would also be considered untaxed income?</p>
<p>She hasn’t said anything about money from him, but she can’t possibly be living only on her income… I don’t think, anyway…</p>
<p>I am not a tax expert, but IIRC alimony is taxable income and is reported on form 1040 (I don’t think you can file a 1040A or EZ). So it would be included in her AGI.</p>
<p>He may still be paying for the house, in which case she doesn’t have to claim that as income. If he pays her money for upkeep (informal alimony), it would be considered untaxed income. Only report what was received in 2010 while separated.</p>
<p>If the husband did not live in the house the last 6 months of 2010, she can file head of household if she claims at least one qualifying child, I believe (do not take my word - consult the tax code or a tax preparer to confirm eligibility for HofH status). Schools often will verify separation. We request recent bills in the name of each parent, with address information, to verify separate residences.</p>
<p>Thank you, Kelsmom. I know the husband has had his own apartment about 20 miles away since at least June or July… but it may have been before that even. I am not intimately familiar with this family, but I’ve worked with the daughter a bit on her college apps as part of the volunteering I do at the high school.</p>
<p>She is living with the mom now. The dad isn’t a deadbeat or anything, and since the girl will almost certainly be attending a school that requires the Profile, he’ll be contributing. I just need to help this mom get her forms filled out as properly as possible. It seems like her whole life is falling apart… husband left, last kid is leaving the nest, house is being foreclosed on. When I talk to her, she just sounds sort of paralyzed by it all.</p>
<p>Interestingly the dad is in banking in some capacity, so she has never handled any of the family money matters.</p>
<p>I, on the other hand, am utterly swamped with my own schoolwork and my job and I don’t have time to take this on… but I’ll meet with her tomorrow and see if I can at least help her get the FAFSA submitted with decent estimates.</p>