How bad would it be if my parents didn't file taxes until April?

Paying for College
1

<p>I'm sorry if this sounds dumb, but i'm having a hard time wrapping my head around dates for the FAFSA.</p>

<p>Some of you guys know me from previous posts, but if you don't: i'm a Class of 2013-er (headed back to HS next week), so i'm applying to colleges this fall. My goal is to apply to all of my schools early (all but one with dates in November, one is due December 1st), but I know that the FAFSA cannot be completed/is not due before then. </p>

<p>Every school is different, but I remember March being a sticking date. I also know that filing the FAFSA ASAP allows for a college to distribute aid packages to you sooner (first come, first served), and it's in my better interests to fill mine out ASAP.</p>

<p>Problems:</p>

<ol>
<li><p>My parents are, right now, refusing to file/have their taxes done before good 'ol April 15th. I asked them if they would give our guy (who does the taxes) the information as soon as they can (if I knew anything about taxes, I would've asked more tactfully) and explained why, they snorted and told me it was all lies and hooey that colleges come up with to "get your information". Um, okay. I think we need to have another talk about this.</p></li>
<li><p>I started working 'officially' (not babysitting gigs and odd jobs like shoveling snow) this year and know nothing about taxes. I filled out my W-2 and other tax forms, so I assume I have to file taxes? What I know is I was a 'seasonal' employee this summer and i'm starting an after-school job next week, with the same place (the town's recreation department). For the seasonal gig there were a lot of weird exceptions, like how they deducted $100 out of my summer's salary in lieu of retirement (couldn't set up a fund, I suppose) that they're giving back to me this winter. Otherwise, I know nothing, except simple things that a portion of my paycheck is taken out, and goes to taxes and 'Medicare Withdrawl' (as it said on all of my summer paychecks). I know how to do things like balance a checkbook and pay my credit card bills, but taxes are making me scratch my head.</p></li>
</ol>

<p>So uhhh...back on track, a part of me thinks that my parents are kind of right, that pushing them to get their taxes done is silly and useless. But the bigger part of me is concerned for my future, and the biggest obstacle between college and myself is the cost. I'll do just about anything (short of illegal things) to try and get myself as much aid as possible, so I don't want to be a sitting duck waiting for taxes in April, only to find myself effed over by the FAFSA.</p>

<p>Can someone explain it a little more simply to me? (And I know the FAFSA does not 'give' money, but determines eligibility.)</p>

<p>Also, when is the PROFILE filled out? One school i'm applying to also uses it and I figured i'd fill it out as well.</p>

2

<p>You could submit your FAFSA with estimated tax information. When your parent and you filed the tax returns, you can go back to correct your FAFSA.</p>

<p>Most schools will offer financial aid with estimated tax information, but they only beome “official” when the corrected FAFSA submitted with filed tax returns.</p>

3

<p>As for filing taxes, I think you need to make more tha 6000dollars as reported on w2 to have to file taxes, very unlikely you will make that. But double check that figure.</p>

<p>As for fafsa, most people use the previous years data as close as they can get to current years. Unless there is a huge change in income, the numbers should be fairly close. Fafsa and school understand. Just stay on top of it.</p>

4

<p>The FAFSA application is a standard form that’s used by schools to determine your eligibility for federal grants and federal loans. Some schools also use that same form to determine if you’re eligible for additional grants from the school itself. </p>

<p>Other schools use FAFSA for the federal grants/loans only, and use PROFILE to figure out if you’re eligible for additional school grants. The PROFILE application is a lot more detailed. I don’t know how soon PROFILE can be completed, but I’m sure someone else here can tell you that.</p>

<p>It’s true that you can use your parents’ estimated income to complete both FAFSA and PROFILE . . . but the figures you use can’t just be a wild guess. They have to be pretty accurate. So if your parents aren’t willing to help you, you’re going to have a problem.</p>

<p>What I’d suggest is running the Net Price Calculators at the websites for the schools you’re interested in. Use your parents’ income tax return from last year, if they’ll let you, so that you can get some idea what kind of aid you’d be eligible for. Then show that to your parents . . . and explain that you can only get that financial aid if they’re willing to step up and help you fill out the FAFSA and PROFILE forms when the time comes.</p>

<p>Good luck!</p>

5

<p>Just remember…any financial aid award given with estimated information on the FAFSA and Profile will be an ESTIMATE. Your finalized award will not be given until YOU get those taxes done and amend the FAFSA to reflect that they are completed, AND do whatever you college wants done regarding the Profile.</p>

<p>And YES your award COULD CHANGE. We got our taxes done in early February. One of college reduced grant money by $9000 and no that is not a misprint. Our actual income increased by less than $3000 from the estimated one.</p>

<p>Do you need need based financial aid to attend college? If so, do you really want to make your college choice on May 1 with an ESTIMATED financial aid award? </p>

<p>The year you are a freshman is NOT the year to do your taxes on April 15. This does not give the colleges enough time to finalize that award before the end of April.</p>

6

<p>You will have pay stubs, and w2s that will give you a very close number to what will be reported to the IRS. Fin aid people aren’t evil, they just want to work with accurate numbers. Take last years tax returns, take parents last pay stub of the year which should show total salary. </p>

<p>If you can encourage parents to move faster, efile by saying it gives to a better shot at money, that may push them, but If not dpnt freak put, you are not alone and just do the best you can w fafsa.</p>

7

<p>You file PROFILE and FAFSA based on estimates as others have said. Do let your parents know that the money is first come first serve, so yes, it behooves them and you to get them done quickly. As THumper says, financial aid can be quirky and a small difference in the estimates can mean a big difference in actual aid. You won’t get the money until the actual returns are verified. If your parents don’t believe you, you might want to talk to their accountant and let them know, and ask that he remind them that it is more urgent to get the taxes done earlier when there is a college student awaiting financial aid awards based on the numbers.</p>

8

<p>Yeah, it’s as I figured with the dates. I think maybe I should sit my parents down and explain it better instead of casually mentioning it at dinner. </p>

<p>@Seahorsesrock - I don’t think i’ll be making 6k this year. Close, but not quite, maybe like 5.5.</p>

9

<p>Try and persuade them to file early if possible. Although you can file FAFSA with estimates, you can still miss out on aid if you are selected for verification and they run out of money for some programs while they are waiting for your tax returns. My daughter’s last year of college she did not get a SEOG grant and a Perkins loan as she had in previous years. When she asked why they looked at her file and said she should have and then looked further and said it was because they ran out of funds in the 2 weeks it took for us to realize she was selected for verification (they post a note in the student’s online page and we were away for a week for spring break) and get the tax returns to them. We had filed FAFSA in January that year but at her school, if a student is selected for verification they do not process the file until verification is complete.</p>

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<p>Holding certain investments (re: limited partnerships) can force a person to have to file for an extension…not actually filing the final return until close to the Oct 15th extension deadline. This scenario could really throw a wrench into things…</p>

11

<p>If possible you need to elist the aid of whoever they use to file their taxes. That person is likely to know why they file late, and may be able to push them along a bit. If they are concerned that they will owe, and don’t want to pay until April, he can assure them that filing the return in February (or even as early as the day the IRS opens the tax season in January) does not obligate them to pay then. The payment is due April 15th, period. Most of my clients who file in April either don’t get their paperwork until then (investments, trusts, other more complicated paperwork), or they expect to owe. I encourage the latter to come in early anyway, because they might now owe, and if they do, it may be helpful to know exactly how much. If that is the case with your parents, their adviser can always prepare the return, and hold it until April 15 to file - but allowing you accurate number to use for FAFSA.</p>

<p>They may also assume that you won’t qualify for aid - which may or may not be true.</p>

<p>A bigger problem for you might be getting them to sign the FAFSA when you submit it, if their real objection is to sharing the information.</p>

12

<p>Correct me if I’m wrong on this but even if they wanted to wait until April 15 to submit them couldn’t they have them processed early and then just hold them until the last minute? You would still have the correct numbers to put into FAFSA early and unless your flagged for verification it will be accurate and everything should be fine.</p>

13

<p>Definitely file an estimated FAFSA asap, like early January (with your income and yourparents’ from the previous year). That puts you in the “first come first served line”. But then try to tell them how important it is (AND IT IS) to file the amended/actual numbers as soon as possible after that.</p>

<p>Good luck!</p>