<p>OP, do your parents live together? Did they live together last year?
It is possible, though not likely, that they do in fact qualify to file each as head of household - so I would not flat out accuse them of fraud, though that’s how is looks. If they lived apart from June 30-December 31, and each had a qualifying child, they would in fact both qualify as head of household. It is a rare but possible circumstance.</p>
<p>Regardless, the best you can do is file the FAFSA with the information that is available. Combine their income from the appropriate lines on their tax returns. Their income will still be the same, whatever their filing status. What changes is the credits they can claim and the taxes due. They way they have filed may have looked like a benefit to them, but the lower tax means a lower excluded income, so it should result in a higher EFC for you.</p>
<p>If that is the case, even if they are caught filing false tax returns, you will not have made a false claim for more aid than what you qualify for. Will they agree to sign the FAFSA with a pin, and send copies of their tax returns as they were filed? If so, do that, to preserve your ability to apply for aid in the future. When you sign the FAFSA you are signifying that the information included is accurate to the best of your knowledge - not that the tax returns are accurate, but that the FAFSA accurately reflects what was reported on them. </p>
<p>Whether your parents choose to file correctly is their problem, not yours. If they are charged with tax fraud, it may influence your ability to pay for college, but it does not reflect directly on you. I can’t speak to the likelyhood of them being caught, though I suspect it’s pretty high - they can’t file electronically and claim the same dependents, but the fact that they filed married previously, and are not both HOH is likely to raise a red flag.</p>