Right…if,you are giving your dad this money just to hold for you temporarily…then it’s not really his money, right? You are expecting him to give it back to you. You just want him to hold it while,you file your financial,aid applications for college.
I would say…nope…not proper.
You keep repeating that at some time you will get the money back. Therefore it is YOUR money and your father is just holding it for you. It is YOUR ASSET. Having your father keep temporary custody of it is no different from hiding it in a mattress. ALL ASSETS belonging to you - in a mattress, in your father’s account, all have to be reported. Not reporting it is fraud.
I’m wondering even if you gave that money away, is it still income that needs to be reported on the FAFSA?
So basically I should have never taken the money directly from SS? Or would I have had to use it regardless since (as the SS website is suggesting) they are considering it my money either way? But even if I were to “gift” it to my dad, I presume that it would be highly unlikely that I would be believed?
Also, what does the fact that it is considered income mean with regards to FAFSA typically? And are there any negatives to qualifying for the “simplified method” in terms of aid?
By the way, I appreciate the help all of you have been giving me tonight, thanks.
Simplified needs test comes into play if parent makes under $50,000 and can file 1040A tax form or is dislocated worker or family member qualifies for federal means test benefit (reduced/free school lunch, SNAP). Then assets are disregarded in the EFC calculation I believe.
If you qualify for,the simplified needs test…no,assets are counted…and student incime is not counted in the FAFSA formula. Note…there is no simplified needs test for Profile,Schools.
Ok. I imagine we qualify for that; is that something that is automatically applied to my application, or do I have to go out of my way to ensure that it is? I did find online however that some FAFSA-only colleges require the assets regardless if you wish to be considered for grants. I assume I would have to contact my school to find their policy on that.
@Kaponator as an aside here…you are talking about trying to move off campus at OSU next year even though the school requires students to reside on campus for two,years. Keep something in mind…firs…don’t lie and say you are living with your parents and commuting…don’t lie.
And secondly…check the cost of attendance for commuters. You may find you won’t get the same financial aid if you reside off campus.
:D. I had no intent of lying, I just wanted to throw it out there that I could (I will not do that though). I actually may stay in the dorms again next year (even though my post there indicates otherwise) due to convenience, as parking at OSU is a nightmare. However, I didn’t mention any of that here because I wanted the conversation to be under the assumption that I WILL be in the dorms and will need the same amount of money.
Back to the topic at hand though, it is clear that I am from Ohio, so I am one of those states listed that has to list assets regardless. Does that mean that the simplified method doesn’t do anything for me, or does act like the auto-zero EFC would, where I list them anyways but they aren’t considered?
The simplified needs test is for federally funded need based purposes. If your state requires the info, that means your state uses the additional info for any state funded need based aid.
Ok, that makes sense. Out of curiosity though, if I had not taken the money myself and had just let my dad keep it when we were receiving it, do you know if it would it have had to be counted as part of the FAFSA?
@Madison85 Is this SS benefit considered income for the child?
FYI
SS benefits for children
https://www.ssa.gov/pubs/EN-05-10085.pdf
What is exactly is meant to “apply for benefits for your child”? Does that mean that the money is the child’s, or that the parent is receiving money to raise the child?
I think it’s up to the family to decide.
But once that money is deposited into YOUR bank account under YOUR name, there is an electronic paper trail that you once received it.
Shoot. So I guess we screwed up. Oh well, it’s not like I can’t afford it. Thanks everyone for taking the time to help me out, I really appreciate it. If anybody else has any other information that they think would be relevant for me to know, please let me know.
My understanding is that in the case of a child receiving SS because the parent is collecting retirement SS, it is money that is taxable income to the child and to be spent on or saved for/by the child. It would be electronically deposited into a custodial account (child’s account with child’s SS number).
Put it in a 529.
Ok, what you said makes sense. I will put it (probably not all of it however) into a 529. How long does it take to get that set up and who do I contact to do it? EDIT: and does it matter to FAFSA when I set up the 529, or is it fine as long as it is set up before I submit the application?