Incorrect filing status? What does this mean?

<p>I received an email saying there is a problem with my parent's filing status. What does this mean and how do I fix it?</p>

<p>"The District Financial Aid office attempted to process your verification forms, but was unable to complete the process. Please read the information below and submit all requested items to our office as soon as possible. No funds can be awarded until we receive the following document:</p>

<p>IRS regulations require couples who are married at the end of a tax year file as either (a) married filing jointly or (b) married filing separately. Based on the information provided on your FAFSA, your parents were married as of August 1978, it appears that your parents fall into that category. Your parents will need to amend their tax returns to Married Filing Jointly or Married Filing Separate. Your Mother’s tax transcript indicates that your Mother filed as Head of Household. We cannot continue to process your financial aid until we receive a 2012 1040X Amended Tax Return that indicates your parents have filed with the correct filing status OR until more information is provided to us that shows your parents current return was correctly filed. "</p>

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How about your father?</p>

<p>I didn’t include him in my FAFSA. Looks like they have to fill out a 1040x amended tax return. I wonder how long that’ll take. I’m so angry right now. Because of this I certainly won’t receive my summer financial aid and who knows if I’ll get any for fall.</p>

<p>I used to work at a school where I had to write a lot of those emails. The financial aid officer has no choice - if he/she sees an incorrect filing status while verifying, it is required by law that the aid be denied until there is an amended return filed with the correct filing status. What surprised me was that these incorrectly filed returns were often completed by tax preparers. Yikes.</p>

<p>Oh … and why did you not include him on your FAFSA???</p>

<p>In past posts, the OP indicates he was living with his parents in June of 2012…</p>

<p>If your parents are now separated & do not live in the same home, only one parent would be on the FAFSA … but obviously, you indicated on the FAFSA that the parents are MARRIED (per your finaid office’s email). What is the story?</p>

<p>If your parents are married, then one cannot file as head of household. That is the issue. If your parents are married and not separated, BOTH parents must be included on the FAFSA.</p>

<p>They would need to correct that tax return…and you would need to put your dads info on the FAFSA. Why didn’t you put your dad’s info on your FAFSA if your parents are married?</p>

<p>Were your parents living at all during the period from July 1 to December 31, 2012? (even just one night)…Or were they legally separated on December 31? (though a court order). Did they divorce in 2012? </p>

<p>If any of those were the case, but they reconciled (in 2013) and moved back together (or if they divorced but still live together), then your mother would still be entitled to file as head of household. If that is the case, you need to contact them and provide documentation to prove that the filin status is correct. Otherwise, yes your parents need to file an amended tax return.</p>

<p>Yes, this does even happen with paid tax preparers - because the clients are not always forthcoming with accurate information. Often people who want to take advantage of the system use paid preparers because they think it lends credibility to their tax return. Hopefully</p>

<p>OP - what did you list on FAFSA?
did you list your mother as married?
did you list your father as a member of the household?</p>

<p>Good luck getting this cleaned up. Unfortunately, it is likely to cost your parents in the form of higher taxes. Hopefully not too much - but it also means the EFC assigned when you completed FAFSA is not at all accurate.</p>