<p>When the Profile asks for the amount of taxes parents will pay in 2010, my husband wants to put all taxes paid - Federal, State, and Local. Line 55 is only Federal. Since we pay a higher tax rate than some states, he wants this accounted for. While the schools should be aware of this, I am worried that we will receive packages in April that will be based on incorrect numbers and my daughter will not be able to make an informed choice. When the school asks for the tax returns, they will adjust the eward. Do the school require the tax returns before or after the awards are sent out?</p>
<p>That is such a bad idea…does he want to do this on her FAFSA too?! It doesn’t really matter whether they send an award letter before or after because all award letters are subject to change, especially if they’re based on false information. Yes, your taxes are high in NJ, and there are other areas of the country with very high tax rates as well, but schools are aware of that and there are allowances built into the system to account for it. It may not be a dollar for dollar reduction, but it tends to level out the playing field a bit since it works the same way for everyone. Overall, where and how you live is usually viewed as a personal choice.</p>
<p>Tell your H that if he’s adamant about receiving additional consideration for his non-federal taxes, your D should probably just go to one of your fine public colleges where his tax dollars are already hard at work!</p>
<p>Do NOT put inaccurate information on either the Profile OR the FAFSA. Knowingly putting false information on the FAFSA is considered FRAUD and could result in not only loss of aid but loss of admissions and a fine. Is this really worth risking?</p>
<p>When the school asks for the tax returns, they will adjust the eward. Do the school require the tax returns before or after the awards are sent out? </p>
<hr>
<p>The schools WILL update the FAFSA based on the correct amounts. That will change the EFC, which may then change the awards.</p>
<p>Awards are always estimated if the student’s school selects that student for verification. Any changes during verification may require an adjustment to estimated awards.</p>
<p>Agree. The schools will just change it anyway so that it agrees with your tax documents. Putting in the incorrect number is not going to help. There is a place on the Profile for comments. If your husband wants that information to be known, it could put in the comments field, but I wouldn’t be surprised if, like sk8rmom says, schools already take this into account at least to some extent. Typically, there is so much verification of your financial information at Profile schools, it’s not like it’s going to get you anything to present it inaccurately. They’ll just go in and correct it based on your documents. That happens all the time, even for small, inadvertent errors.</p>
<p>Thanks for all the good advice. I solved the problem by completing the form myself!</p>
<p>FAFSA calculates estimates for state taxes based on tables in the EFC formula. The percentages vary based on the state you live in (not saying they have any relationship to actual taxes anyone pays). I am guessing profile does something similar. So the state taxes are included in there somewhere. Sort of.</p>
<p>^True, and, at 10%, NJ has the highest state tax allowance in the FAFSA tables! Followed closely by NY and CA…</p>