<p>Okay so I'm really worried about the FAFSA.</p>
<p>My mom said that she hasn't filed her taxes in years, does this mean that I can't do fafsa at all, even if I filed my own taxes last year?</p>
<p>She claims me as a dependent, and I am a senior in high school.</p>
<p>If so, it would really suck for me...</p>
<p>Thanks.</p>
<p>There is a question on the FAFSA that asks if parents have filed. They can fill in NO. How can she claim you as a dependent if she hasn't filed taxes? If you do the FAFSA you will still need to provide her financial info.</p>
<p>Thank you! </p>
<p>Her business still takes taxes out of her check, so she claims me as a dependent so that she can save some of it. </p>
<p>But I'm relieved to know that I can still get fafsa if she hasn't filed.</p>
<p>If she was required to file but hasn't then you cannot get financial aid. The "not filing" means that the person (either parent or student) isn't legally required to file their tax return. Your mom may need to get to the local IRS office or tax professional and find out if she made enough to be required to file.</p>
<p>I think you may have a problem. The option is available on FAFSA because some people do not have to file a tax return because they do not earn enough. If your Mom is not required to file then you are OK. If she is required by law to file taxes, but just does not, you may not be eligible for federal aid. </p>
<p>I have tried to research it but the closest thing I can find is on finaid and relates to 'tax protesters', who do not files taxes and believe they should not have to. According to finaid they would probably not get aid because </p>
<p>
[quote]
If someone whose data were required on the FAFSA submits a signed statement claiming nonfiler status and you have reason to believe that person would have been required to file a U.S. tax return, this constitutes conflicting information and must be resolved. ..
[/quote]
</p>
<p>from FinAid</a> | Professional Judgment | Tax Protester
If your Mom's income is over the threshold for filing taxes and you say on FAFSA that she is not filing, will be conflicting information.</p>
<p>I am not sure of this, though it seems logical that this would be the case. It would be interesting to hear an opinion from our actual financial aid officers. Nikkil and keslmom - are you out there?</p>
<p>She can check "will file" - that will at least get the application filed by the deadline. </p>
<p>Not sure what the implications are for her if she files 2008 taxes after not filing previous years, but at least you'd retain your eligibility for aid. She probably needs to consult a tax attorney.</p>
<p>If she's having taxes withheld from her paycheck, then there's a good chance she is required to file. If she isn't, she should be filing just to get that money back. I don't believe FAFSA asks about any year prior to the one we're talking about and the 2008 return isn't due until April, so have her estimate what her return will look like now, or even go ahead and file as soon as she can and use that.</p>
<p>
[quote]
Her business still takes taxes out of her check, so she claims me as a dependent so that she can save some of it.
[/quote]
</p>
<p>I think you need to get this clarified. Does your mom own this business or is she hired by someone else? If she is hired by someone else and earned above the amount required to file, she is required to file. If she owns a business, she is required to file taxes. Anyone earning an income in excess of a not very high amount is required to file taxes.</p>
<p>You should also check your state requirements. Many states that have state income tax require folks to file IF any amount was deducted from their pay for state taxes.</p>
<p>Try to get accurate information from your parent.</p>
<p>Employees who believe that they will not be subject to the federal income tax because their income is below the filing threshold generally check the "exempt from withholding" box on their W-4 forms, and their employers do not withhold federal income taxes, although they will withhold Social Security and Medicare taxes. Claims for dependents are irrelevant for these employees, because it is not necessary for them to calculate exemptions.<br>
If your mother is exempt from withholding but failed to notify her employer, then she should have been filing federal income tax returns in order to receive a refund of the federal tax withheld.</p>
<p>I am going to second nikkil's post ... if your mom is supposed to file a tax return and does not, you WILL NOT be eligible for aid. If she wants you to be eligible for aid, she will have to file (if required to do so).</p>
<p>Ok so, what you all are saying is that I can still get financial aid if my mom files her taxes -this- year and check the "will file" box on the app?</p>
<p>She definitely makes over te threshold income. </p>
<p>Or am I just completely screwed for her irresponsibility...?</p>
<p>If she files her 2008 tax return with the IRS, you will be fine for your 09-10 FAFSA. She may have issues with the IRS for not filing prior years, but that will be between her and the IRS and will not affect the 09-10 or later FAFSA applications. It could have an affect if any of the schools require both the 2007 and 2008 tax returns, though, so she may need to get both those years filed ASAP.</p>
<p>How can you file taxes that were due years ago?</p>
<p>Do I have to wait until she gets her tax return to be able to fill out fafsa?</p>
<p>Baah...</p>
<p>You can estimate income to submit FAFSA and put 'will file' for the tax return. You may get a preliminary award based on this. But no aid will be finalized or disbursed until a return is filed and you are able to change 'will file' to filed.</p>
<p>Individual taxes can be filed up to three years into the past (including the current year I believe). THe forms are typically archieved on the IRS website or can be obtained from your local IRS Office.</p>
<p>You can actually file them much further back if you owe the IRS. If they owe you, you can only go back three years. You have until April 15, 2009 to file the 2005 return.</p>
<p>Your mom can file a 2008 tax return (and state tax return, if she needs one), but ideally she should speak with an enrolled agent (a person who specializes in income taxes and who is approved by the IRS) or a CPA before deciding how to approach filing for the missing past years. Depending on the circumstances, she could face some significant penalties. On the other hand, there may be mitigating circumstances, and an enrolled agent can help her understand her options. (In cases like this I think an enrolled agent can often be more help than a CPA, because the EAs handle a lot of cases like your mom, and are well versed in putting together offers in compromise.) There are a surprising number of people who don't file, and it isn't even unusual to find out that they are even owed refunds -- things just got overwhelming, they couldn't cope with the paperwork, medical problems or a divorce ate up time, energy and money, or an eviction or flood or some other problem caused paperwork to get destroyed.</p>
<p>Fixing the non-filing problem isn't usually as awful as people expect, and it sounds like there's a really good reason (you!) for her to get some help with it now. </p>
<p>PM if you have any questions.</p>