<p>Hi, I was looking at the FAFSA application form this year so I'd know what info I'd need to give if I was applying to enter the 2014-15 year at any school. I saw the question of people in a household and am stuck on what I'd answer. My parents are legally married but my dad lives in the states and my mom in the EU. She lives with my minor sister and I came to live with him once I graduated high school (I'm taking a gap year). We're all American dual citizens and my parents are still married in the sense they just live like this for money reasons and my dad's job. He lists himself and my sister and me in his household in his tax return and not my mom. Thus, since he did support us my mom never filed a tax return in the EU country she lives in since she's never worked there. </p>
<p>What should I put down in the applications to come? Also...does this mess up my chances for aid in the future? If you've reached the end of this post: thanks for making it and reading all of that. Thanks in advance for advice too!</p>
<p>If both of your parents are US citizens, they should both be filing US federal income tax returns each year. Their options are to file a joint return together, or individually with the status of “married filing separately”. So start by finding out what is going on with their taxes.</p>
<p>If your dad is supporting two households in two countries on one income, chances are that he makes a fair amount of money, and you won’t be eligible for much need-based aid. So do find out how much he truly is ready, willing, and able to pay for your education. You don’t want any ugly surprises next spring.</p>
<p>He makes under 15k a year, but the exchange rate is in our favour and he has modest circumstances. The country my mom lives in doesn’t have the euro and it doesn’t have the euro because it’s currency is weak. That meant we could live comfortably even with my dad’s low income. My father is also on social security. He surely isn’t able to pay for my education on his own.</p>
<p>Would my mom have to file if she makes no money? My father files married but separately.</p>
<p>iF your mother has no income, she probably wouldn’t need to file a tax return. When you apply for financial aid, she’d need to submit a declaration stating that she wasn’t required to file a tax return.</p>
<p>But who is supporting her and your sister??? That may not need to be declared for tax purposes, but it may need to be explained if you want to be eligible for financial aid.</p>
<p>My father states on his tax returns that he supports my sister and I but is not allowed to deduct us because we were abroad permanently then. Would that be the ‘declaration’? </p>
<p>I’m having a hard time understanding how two households in different countries could live on less than 15,000 a year. Might raise some red flags.</p>
<p>It hasn’t always been easy and my mom was forced to sell a lot of stuff, but it’s much more than what my dad would make in the country I lived in in Europe. In the country the average person makes equivalent to 5k usd a year.</p>
<p>Your mom would need to complete a non-filers form if she doesn’t file taxes. This will be required by all colleges.</p>
<p>The colleges are certainly going to question how you are able to provide support to TWO households on $15,000 a year. Be prepared to provide documentation of how this is done.</p>
<p>Does your dad collect SS in addition to his $15,000 a year income?</p>
<p>It sounds like your father may be eligible for file as Head of Household for 2013 (the year used for 2014-2015 financial aid), as long as you moved in with him before the end of June 2013 (“Your home was the main home of your child, stepchild, or foster child for more than half of 2012” is the IRS language). If so, your mom would just sign a nonfiler statement if you are selected for verification.</p>
<p>I moved in with him in August. My dad just started collecting social security in August as well. My mother lives with family and so she doesn’t have to pay rent and utilities, which makes the money my dad makes work.</p>
<p>Your dad will not be able to legally file head of household, because you lived with him less than 6 months in 2013. Look at the IRS 1040 instructions for head of household filing status, or use this link: [What</a> is My Filing Status?](<a href=“http://www.irs.gov/uac/What-is-My-Filing-Status%3F]What”>http://www.irs.gov/uac/What-is-My-Filing-Status%3F). It appears he can file Married Filing Separately, but not H of H.</p>
<p>He can … but because she is not living with him, he is eligible to file separately. I am not sure what the benefit would be … I just know it can be done.</p>
<p>He could file separately even if she were living with him. Many married couples do so.</p>
<p>But they can also file jointly which would most likely result in a lower tax liability. They can do so even if he isn’t supporting her 100% because she is his spouse, not a dependent.</p>
If OP’s parents file jointly, they have to report their worldwide incomes/assets. Their worldwide incomes may/may not be just $15,000 and OP’s mom may/may not has assets in Europe.</p>
<p>Op’s parents should calculate their taxes in both cases - MFJ & MFS.</p>
<p>He could file separately even if she were living with him. Many married couples do so.</p>
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<p>That’s correct … I was thinking along the lines of him supposedly filing H of H when I said “separately.” Any married couple can file as Married Filing Separately.</p>
<p>If the mom has no income, and the dad sends her money, I don’t see how it makes any sense for the dad to file HOH or MFS. It seems (to me) to only makes sense for them to file MFJ. </p>
<p>but maybe I’m missing something.</p>
<p>Eiither way, for FAFSA purposes, both parents’ income and assets will have to be included. Filing HOH or separately does not mean that mom’s assets/income are excluded since they’re not separated or divorced. (they live separately for job purposes, not because of marital disharmony, etc.)</p>
<p>I’m not going to touch the tax issue. Hopefully, the OP’s father has discussed the situation with a tax professional and what he is doing is legal and the best thing to do in that regard. OP might want to ask the father to consult with a professional if he has not, just to make sure he is not breaking any laws and is doing things the most benefically for him.</p>
<p>However, for FAFSA purposes, the student claims as the parent the one with whom s/he lived the most in the last year. So that person is the custodial parent, and only that person’s income and assets are reported for FAFSA purposes, including any shared assets with the others and support given by the other spouse. I believe that the “separated” category for FAFSA purposes does not necessarily jive with the states’ definitions and federal definition for tax purposes, and living apart like this would qualify as separated.</p>