I just filled out Fafsa for the 2018-2019 school year for the first time, and they asked for my parent’s 2016 tax return. I chose the option that they didn’t file taxes, since they literally didn’t file taxes. We moved here from another country in 2015, I’ve been living with my aunt ever since, my parents travel back and forth for their work in our original country. They don’t really have a job here, therefore don’t file taxes.They then asked for my parents income, which I put in a small amount for both of my parents, which I don’t think is incorrect, most of their income come from the country that they’re working in and they file taxes and pay taxes to that country. I just submitted the Fafsa and it’s still pending, waiting for my parents signature, I’m freaked out right now thinking I might have done something wrong.
ALL I NEED TO KNOW IS WHAT SHOULD I PUT IN THE TAXES AND INCOME IF MY PARENTS ARE LEGAL IMMIGRANTS, WHO HAVE NO JOB AND DONT FILE TAXES?
You would put in their total income regardless of where it was earned.
You are required to list ALL income for your parents regardless of where it was earned.
Are you a U.S. citizen or green card holder?
Are your parents?
We’re all green card holders. I didn’t know so I put 0.00 in the income section, thinking that I wouldn’t be able to provide proof of income. I want to correct it, but I don’t see any options to do so, it’s still pending for my parents signature.
Anyone who puts 0 as income will be a big red flag for any college. they will know that you are hiding something. It could jeopardize you receiving any aid. if your parents pay taxes overseas then there will be documentation that you must provide or you will get no aid.
You really FAFSA has not been processed yet…because one of your parents needs to sign. Do they have a FSA ID number?
Until this one processes, you won’t be able to make the change.
https://www.irs.gov/individuals/international-taxpayers/taxation-of-resident-aliens
Your parents need to talk to a person who is knowledgable about resident aliens and US taxes.
They might need to file taxes here in the US.
For now you need to ask them about the foreign tax return to report the income they had in 2016.
Thanks, I appreciate the help. I’ve been trying to to figure how this going to work. I’m gonna correct the information after having my dad sign it. Foor the documentation will they accept it if it’s from a foreign country?
If you need to fill out the FAFSA now because of school or state deadlines then you can try to report their foreign income. But your parents should find out if they were required to file a US tax return.
If you can wait to file the FAFSA then I would try and wait until you have that information.
From Fafsa,gov. Question 33 . . . you must select the income tax return that you filed or will file for 2016:
IRS 1040
IRS 1040A or 1040EZ
A foreign tax return
A tax return for a U.S. territory or a Freely Associated State (including Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia, and Palau tax returns)
Under the help:
“If you (and your spouse) or your parents filed (or will file) a foreign tax return, use the information from the foreign tax return to fill out this form. Convert all monetary units to U.S. dollars using the published exchange rate in effect for the date nearest to the date you complete the Free Application for Federal Student Aid (FAFSA). Go to https://federalreserve.gov/releases/h10/current to view the daily exchange rates.”
It will be much better to correct the information before your father signs it. Why would you knowingly have him sign an incorrect form, and then go through the hassle of correcting information that has already been formally submitted? Not smart.
Well, I guess $0.00 is a “small amount,” but really…
A 0.00 income means that you are living in a homeless shelter and eating at soup kitchens. No college will believe that.
Not true. Many people have $0 in taxable income. They live off savings, live with relatives. It is not ideal, but there are people who made no income (or even had negative income after deductions) and do not eat at soup kitchens.
MANY, MANY people have $0 taxable income. I previously worked at a large urban university, and we had many 0-income students/families. There were many different ways they were able to live, with only a few actually living in homeless shelters (yes, we did have students and their families in that situation). Please try to keep comments helpful.