<p>It sounds to me like they are filing separate returns, and not only are they no co-mingling any money, but the step mother is not sharing any financial information. I would worry that she might be committing other fraud - and the fact that she hasn’t been called on it doesn’t mean the government doesn’t care. With fraud, they can go back as far as they want to collect unpaid taxes.</p>
<p>Step mother initially lived with her daughters, presumably before the marriage - filing with just mom was fine. When they got married, if they lived apart more than half the year, and each had dependents of their own, they could each have still filed taxes as head of household - but that causes some confusion when filing FAFSA, because FAFSA rules are not the same as tax rules. Now that she lives with her husband, she is not eligible to file as head of household, and if they file married filing separately, they still must each list the other on the tax return. That won’t pose a problem for the IRS, but it will raise flags on the FAFSA.</p>
<p>The whole idea that she is not contributing to the household is a problem the father should consider - either she IS in fact contributing (paying her share of meals and other expenses, of she is not. If she is not contributing, yet benefitting from his house and his food, then he is contributing to HER household, and she is a freeloader. He may be perfectly happy with that arrangement, but he should be aware of it. She is gaining the benefits of marriage, without the costs - cost that are being paid by the rest of us in the form of any federal aid the daughter “qualifies” for by not listing his income. I hope he knew ahead of time what he was getting into in this marriage.</p>
<p>I don’t find the separate financial arrangements strange at all. I see this a lot in families here, especially when it is not the first marriage, or when the couple is older and have quite a bit established financially on their own. The marriages I see this way, seem to work just fine. What the stats on this, I don’t know.</p>
<p>However, the situation with FAFSA does require info from the step mom. She doesn’t believe it. Once she is convinced of this, perhaps she’ll fill in the info privately on line, once she realizes what is at stake. Someone from a college financial aid office or the high school guidance office needs to explain that this is a federal requirement for her step son to be eligible for any financial aid, and for loans. How she did it with her daughter is a whole other issue and should not be brought up. She can deal with that herself, but for now, enough is that the OP needs her financial info on a FAFSA form to have a chance for any aid, and for loans.</p>
<p>I need FAFSA help! The question that asks for, “the number of people in your parents’ household attending college is _” I put 0 because I am not living with my parents, in fact I don’t even live in the same state. FAFSA wouldn’t let me move on with that answer though. According to FAFSA, I am dependent. Should I put “one” anyway? Does household mean physically living there or just in accordance to being dependent?</p>
<p>Are you at a boarding school? You would still be considered in your parent’s household.</p>
<p>For FAFSA purposes, you are a dependent if you cannot get through the “test” for independence. So, yes, you are in your parent’s household, as are all students even if they never come home while they are in school. I knew some in that exacft situation.</p>