<p>Last week I posted re: tax credits and got some help--thank you! We redid our taxes following the suggestions. Shifted some scholarship $$ to D's taxes and used the Hope credit.</p>
<p>All seemed fine until my husband told me that our EFC went up exactly the amount of the tax credit. D has an ACG and I am concerned that she might not be eligible for it next year.</p>
<p>And since our income has dropped (not the time to be a small business owner), I wonder if we should revise a second time?</p>
<p>Did you make sure that you reported the taxable scholarships included in income on in the appropriate question (46d) on FAFSA? The taxable scholarships will increase your daughter's AGI but s/b reported elsewhere on FAFSA so that that amount is deducted from income by the EFC formula before the EFC is calculated.</p>
<p>Also on the parent questions (94a) it asks if you took any education credits. Did you answer that correctly? The tax credit decreases your tax paid which would make the available income for the EFC higher. So the question asks about the credits and the formula deducts them from the income so that you are not penalized for taking the credits.</p>
<p>Ahem, Mr. Efficiency forged on while I was at a meeting and filed everything. Despite my notes, on the printed copy the box for Student's Grant and Scholarship Aid Reported in AGI is blank AND he entered -0- for Parents' Education Credits.</p>
<p>swimcatsmom, you are such a gem, thank you. </p>
<p>But now what, do we simply correct a second time or call and explain we are dorks?</p>
<p>You will have to correct it again even if you call and tell them you are dorks ;)</p>
<p>hey last year I almost filed our taxes with the estimates for interest and dividends I had plugged into turbotax to estimate our taxes for FAFSA. It was a lady at the county courthouse, where my husband took the taxes for some deal to do with property taxes and age and being below a certain income, who pointed out that our supporting documentation (actual 1099s) and tax numbers (my uncorrected guesstimates for FAFSA - higher than the real numbers) did not agree. I did feel silly.</p>