<p>I'm a freshmen in college right now during High School I had a difficult time completing my FAFSA. I submitted my application around February. I just put that the taxes would be filed later on. At first my parents couldn't find the resources, which meant that I ended up completing and actually submitting them in March. I thought that that would be the end of it well I was wrong. I also had to complete the Verification worksheet, that I had no idea of until I went to enroll into college and someone had the decency to tell me how to do it. To completed this I had to find an IRS tax return transcript I had no idea how to find. I couldn't get it through the IRS retrieve tool because my parents filed separably.I did get through that and finally found it after countless e-mails to the IRS. This though doesn't stop there apparently the address on my step-dads FAFSA was wrong, instead of SE the person we filed taxes put SW. Well I thought everything would be solved after this but a week ago I went and asked the Financial Aid Office at my school if my financial aid was processed and she said I had to re-do my taxes because my step dad filed as head of household and my Mother as single. The lady there said there was no way around it. The reason my mother filed this way is because my step father doesn't cover any of my costs. I'm afraid that my parents will be forced to give up some of the money they received before and either way I probably won't get much aid since it's way past when everyone should be doing their FAFSA. Now I have a 3000 scholarship that would really come in handy but the people can't process it until they receive my Financial Aid award letter. Any ideas on how to solve this mess? I'm really lost.</p>
<p>You can’t file as “single” OR as “head of household” if you are married and living in the same house. If they are married and living in the same house, your parents have made a mistake on their taxes and need to file amended returns. Better to amend themselves than get caught by the IRS later, IMHO. Their choices are probably “Married Filing Jointly” and “Married Filing Separately”. You may or may not lose your scholarship money, but it sounds like the college won’t accept the way they filed (and they probably shouldn’t).</p>
<p>Your parents can’t manipulate the system just to get more grant money. It doesn’t matter that your step-dad isn’t supporting you. That’s irrelevant. Your mom benefits from his income, and therefore, she can help you…that’s how the system looks at it. Your mom isn’t paying for all rent, utilities, food, etc…which she would be if she really were single.</p>
<p>OP, is your mom married to your “step dad”?</p>
<p>
The issue here is not just about your financial aid. Assuming your Mom and Step Dad are married and living in the same home, it is illegal for your parents to file the way they filed. They can file as married filing jointly, or married filing separately. They can not file with one as head of household and one as single. </p>
<p>You will not be eligible for aid until they correct their return. They need to correct it anyway before the IRS comes after them.</p>
<p>My guess is that your parents each were trying to qualify for the earned income credit, which maybe they thought they would not get, or not get as much, if they filed as married filing jointly.</p>
<p>But if they are actually married–and not just living together for a long time and calling themselves husband and wife–then they have only two filing choices, married filing jointly and married filing separately–and the married filing separately status automatically disqualifies for the earned income credit.</p>
<p>Your parents need to amend their returns to reflect the appropriate filing status. They may have bigger problems than your qualification for financial aid if they do not do so–the IRS is getting involved in more and more of these situations, because filing as single or HOH when married is considered tax fraud.</p>
<p>My guess is that your parents each were trying to qualify for the earned income credit, wh</p>
<p>Maybe, but I think the mom (by filing as single) earns a low income and the student’s EFC was low enough for Pell. But, the EFC is wrong, because the SF’s income needs to be included as well.</p>
<p>Wow. They committed(and probably have been all along) tax fraud.<br>
They have possibly collected thousands upon thousands in tax refunds that they weren’t entitled to and I have no doubt that they knew exactly what they were doing. I feel sorry for you but they are in a deep mess…and that 3000 scholarship is the least of their problems.</p>
<p>Truly a very small percentage of tax cheats are ever caught and I guess they were willing to take that chance…</p>