How to File FAFSA for a US Citizen living Abroad

Paying for College
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<p>Hello Everyone - </p>

<p>First of all, I know this has been asked many times on this thread, but I'm still very confused on how to go about this. Let me give you a little background information -</p>

<p>I am a US Citizen living in India. I moved here in the year 2010. Due to moving difficulty and other stuff, my parents haven't filed taxes the years 2010,11, and 12. they have contacted IRS and explained. We will be filing those 3 year taxes in a few weeks. BOTH my parents are also US Citizens. We have no income in the US. </p>

<p>So, how do I go about filling the FAFSA? We have filed all our taxes in India. Can someone please detailedly explain the whole process of filing from living abroad? </p>

<p>Thanks and Regards - </p>

<p>anvesh95 (Class of 2017!)</p>

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<p>I think you’ll have to wait until your parents filed their US tax returns.</p>

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<p>Your situation is no different from that of anyone else who needs to file 2012 taxes and hasn’t yet done so.</p>

<p>To the best of their ability, your parents need to estimate the figures for their 2012 taxes and fill in the FAFSA using those estimates. File the 2012 tax return as soon as possible thereafter and, when it’s filed, correct the FAFSA to reflect the actual figures.</p>

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<p>

See <a href=“http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad[/url]”>http://www.irs.gov/Individuals/International-Taxpayers/U.S.-Citizens-and-Resident-Aliens-Abroad&lt;/a&gt;&lt;/p&gt;

<p>Also, if you don’t want to wait to file the FAFSA:</p>

<p>Most people use their 2011 tax returns to estimate their 2012 tax returns. In your case, your parent just have to estimate how much they earn worldwide and go from there.</p>

<p>They should be aware that they need to report their foreign assets too. The non-reporting penalties kinda severe. They should talk to a tax expert.</p>

5

<p>from the link that 4kidsdad posted:</p>

<p>

</p>

<p>If your parents do not file taxes, are are suppose to file, then you will not be eligible for federal aid (at some schools, you may not get state/institutional aid either). Your parents will have to file taxes and then use the IRS data retrieval tool for this year or submit and IRS transcript. IF your parents are not required to file taxes, then you must submit an Non-tax filers statement from the IRS stating that your parents do not have to file income taxes.</p>

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<p>

</p>

<p>For U.S. citizens residing abroad, foreign-earned income is subject to U.S. income tax; however, the first $95,100 of foreign-earned income can be excluded. </p>

<p>In addition to filing a U.S. tax return, citizens are also required to file a TD F 90-22.1 form every year to declare all foreign bank & financial accounts.</p>

<p>The IRS has a long arm…</p>

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<p>Many citizens outside the country discover that after all of the exclusions, credit for foreign taxes, etc. that they don’t owe a penny in US taxes. Which is one reason why so many don’t bother to file.</p>

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<p>

They still require to file.</p>

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<p>My parents are going to file them, but there is no income of any sorts. I think there is a form 2555 or something that’s for foreign income. but I was asking because FAFSA relates everything to 1040/1040EZ.</p>

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<p>The 1040 is the main form they (and all Americans earners) need to fill out. How can they have no income of any sorts? Don’t they earn income in India? Otherwise, how do you eat and pay the electric bill?</p>

<p>The 2555 is a supplemental form. </p>

<p>If they have any foreign bank accounts, they also need to fill out a TD F 90-22.1</p>

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<p>

Your parents need to report their worldwide incomes that include any incomes at India.
If your parents and you are not familiar with tax matters, you family should ask a tax expert to prepare your tax returns.</p>

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<p>Don’t get me wrong, my parents know how to file taxes. I was just kind of confused on how to fill FAFSA regarding what income. Alot of my universities have FAFSA deadlines in the first week of February. Any help of what I can do to reech the deadline?</p>

<p>Thanks!</p>

<p>And “income of any sorts”, I was referring to income in the United States.</p>

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<p>if your parents have income and don’t file taxes, you will not be eligible for federal aid</p>

<p>you will fill out the fafsa using their current income (converted to US dollars)</p>

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<p>^ Current income from any source…</p>

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<p>Thanks for the help everyone, I got my doubts clarified. Good luck!</p>

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<p>Hi, I’m a US citizen living overseas, I have just started working on the FAFSA for my son who will be attending Lawrence U in Wisconsin. I do file a US income tax return, but my US taxes are minimal (in fact none some years) because of the foreign income exclusion and the rather high taxes that I pay where I live. But I’m very confused about what to put on the FAFSA and haven’t been able to find anything useful on the IRS website … can anyone point me to instructions/guidelines? Also, I can’t file my 2012 return before May or June, so I am using my 2011 return to estimate … I indicated this on the FAFSA, but it is asking “how much are your 2012 taxes?” and I don’t know how to answer that. Thanks for any help!</p>