Job + Taxes

Paying for College
1

<p>I read some FAFSA notes recently and had this question.</p>

<p>I will be graduating in 09 and I'm looking to get a job in the summer (I know its early). If I get a job during the summer of 2008, lets say about $3000, then a similar job during the summer of 2009, then do i have to to the tax stuff for both? I heard if it is under $3000 then FAFSA does not look at it but what if it is $3000 in different years? Will FAFSA still consider it while calculating my EFC? My Family's income is really low so i need all the $$$ I can get.</p>

<p>Plus any additional information relating to this topic would be great. Thanks in advance.</p>

2

<p>If you're graduating in June '09, your last FAFSA will be filed in January '08 and be based on your income in '07. So any '08 income won't impact aid at all.</p>

<p>If your summer income in '07 was under $3335, it won't impact the contribution to the EFC from student income. But if some of the $3335 is still around as a reportable asset when you file FAFSA early next year, it will increase your EFC and potentially reduce your aid.</p>

3

<p>Wouldnt the FAFSA be filed in january 09 not 08?</p>

<p>and what does "...But if some of the $3335 is still around as a reportable asset" mean? Do you mean like I didn't spend all of that money and i still have it around?</p>

4

<p>No-- you're last college year is '08/'09, and the FAFSA for that year is filled out early in '08, using '07 income. You need to think about a year ahead.</p>

<p>Income and assets are different, and either can contribute to the EFC (and thereby reduce aid). There's no asset protection allowance for the student, so every dollar of reportable assets (cash, checking, savings, etc) increases the EFC and reduces potential aid. If you have $3,000 sitting in your savings account on the day you complete the FAFSA, it will increase your EFC by $600, and potentially reduce your aid by a similar amount.</p>

5

<p>So I have to file the FAFSA in a month? When I'm a junior?</p>

6

<p>Yeah-- you file starting January '08, while a junior, for your senior year. Actual deadline depends on the school, but us probably around early March, '08.</p>

7

<p>Sylvialee is a junior in HS not college. She does not have to fill out the FASFA until next January, her senior year in HS.</p>

8

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<p>You file your FIRST FAFSA in January of your senior year in High school. For example...for the 2008-2009 school year in college, you file the FAFSA beginning Jan 1, 2008 (using 2007 tax year information). For the 2009-2010 school year in college, you file the FAFSA in January 2009 using 2008 tax information.</p>

<p>Does that make sense? NO you do not fill out the FAFSA in your junior year of high school (unless you are graduating at the end of your junior year and are enrolling in college that fall....an exception).</p>