<p>My brother is currently a freshman in college. Our EFC last year, for him, was $20,000.</p>
<p>My dad's income dropped about $15,000 since last year largely because of the economy.</p>
<p>So is $13,000 the amount my dad will be expected to pay for my brother and I combined next year? Or is $13,000 the amount my dad will be expected to pay just for me?</p>
<p>Would a $15,000 drop in income cause the total EFC to go from $20,000 to $13,000?</p>
<p>That EFC is likely just for one child, because you are supposed to fill out one FAFSA for each child, I believe. So, the EFC could have gone down for two reasons: one could be the reduced income, and the other could be because there are two children in college. That comes into play as well.</p>
<p>But if that EFC is just for me, that means my dad has more to pay for my brother?</p>
<p>That's why I asked the second question...$13,000 seems reasonable for both of us combined given that our total EFC last year was $20,000 (and my dad's drop in income and the fact that we have two kids in college next year).</p>
<p>So this is why I'm confused. $13,000 seems like it'd be the correct total EFC (for my both my brother and I), but this number was given on my FAFSA...so it also makes sense that this number is just for me.</p>
<p>???</p>
<p>Did your family AGI go down significantly as reported on the FAFSA? Sometimes, though there is an income decrease, on paper it does not show up on the whole. It looks to me from what you have said that each of you have a $13k EFC making the family EFC $26K this year which does not make sense.</p>
<p>^ If that's the case, that really doesn't make sense.</p>
<p>Absolutely nothing changed besides my dad's income...which significantly dropped.</p>
<p>What is AGI?</p>
<p>AGI = Adjusted Gross Income</p>
<p>This is line 37 in the US Federal Income Tax form 1040. I don't know what line it is on the 1040A or 1040EZ.</p>
<p>AGI includes income from all sources (wages, self-employment, interest, capital gains, etc. etc.) as well as certain deductions from income (tuition and fees deduction among others). Further deductions and exemptions are taken later out of the AGI and Taxable Income is reported on line 43 of form 1040.</p>
<p>AGI is not the same thing as Taxable Income.</p>
<p>Did your family fill out two FAFSAs? One for each student?</p>
<p>Has your brother completed his FAFSA? He needs to do one this year also.</p>
<p>If you put 2 for the number in college then $13k is the EFC for you. If absolutely the only difference compared to last years figures is that his income has gone down then it is surprising that the total family EFC would be effectively higher than last year. There are several other things that affect the EFC though. Parent assets, student assets, student income. Are any of these higher than on your brother's FAFSA from last year?</p>
<p>Other things that could make a difference - so make sure they are entered correctly on FAFSA. Amount of income earned from working. FAFSA asks for AGI and also asks for the amount of income that is from working. The amount earned from working is used to calculate certain allowances that are deducted from income, such as FICA. Important to report this correctly. Education tax credit - if your father was able to take a credit such as the Hope credit this reduces the tax you have to report on FAFSA. FAFSA asks for information on this so as to reduce parent income by this amount so as not to penalize you for taking the credit. Number in family and number in college. These make a difference.</p>
<p>Go through line by line and check everything.</p>
<p>I wonder how many people put their Gross income down instead of AGI or earned income. My AGI is nearly 20K less than my Gross pay because of retirement contributions and health care premiums. (of course the retirement is added back in, but if you put your Gross salary down and entered the amount of retirement somewhere else, you would be adding it in 2x, NOT a good thing!)</p>
<p>Well my dad apparently thinks his AGI is the same as his 'income earned from work'.</p>
<p>But the AGI is $130,000.</p>
<p>And yes, I think, we filled out two separate FAFSAs. The one I helped fill out with my dad was only for me, so I think I can safely assume (I'm not actually sure) my brother filled out his own.</p>
<p>Parent(s) Marital Status / Family
Parents' Marital Status: SINGLE
Parents' Marital Status Date:<br>
Parents' Number of Family Members in 2009-2010: 4
Parents' Number in College in 2009-2010 (Parents Excluded): 2
Parents Received Supplemental Security Income?:<br>
Parents Received Food Stamps?:<br>
Parents Received Free/Reduced Price Lunch?:<br>
Parents Received TANF?:<br>
Parents Received WIC?:<br>
Is Parent a Dislocated Worker?: NO</p>
<p>Parent(s) Education
Father's Educational Level: COLLEGE
Mother's Educational Level: UNKNOWN</p>
<p>Parent(s) Tax Return Information
Parents Filed 2008 Income Tax Return?: WILL FILE
Parents' Type of 2008 Tax Form Used: 1040
Parents Eligible to File a 1040A or 1040EZ?: NO
Parents' 2008 Adjusted Gross Income: $ 130,000
Parents' 2008 U.S. Income Tax Paid: $ 25,205
Parents' 2008 Exemptions Claimed: 4</p>
<p>Parent(s) Income
Father's / Stepfather's 2008 Income Earned from Work: $ 130,000
Mother's / Stepmother's 2008 Income Earned from Work:<br>
Additional Financial Information
Parents' Education Credits: $ 0
Parents' Child Support Paid: $ 0
Parents' Taxable Earnings from Need-Based Employment Programs: $ 0
Parents' Grant and Scholarship Aid Reported in AGI: $ 0
Parents' Taxable Combat Pay Reported in AGI: $ 0
Untaxed Income
Parents' Payments to Tax-Deferred Pensions & Savings: $ 0
Parents' Deductible Payments to IRA/Keogh/Other: $ 0
Parents' Child Support Received: $ 0
Parents' Tax Exempt Interest Income: $ 0
Parents' Untaxed Portions of IRA Distributions: $ 0
Parents' Untaxed Portions of Pensions: $ 0
Parents' Housing, Food, & Living Allowances: $ 0
Parents' Veterans Noneducation Benefits: $ 0
Parents' Other Untaxed Income or Benefits: $ 0</p>
<p>Parent(s) Assets
Parents' Total of Cash, Savings, and Checking Accounts: $ 4,500
Parents' Net Worth of Current Investments: $ 0
Parents' Net Worth of Businesses/Investment Farms: $ 50,000</p>
<p>You do have to enter the amount earned from work as well as the AGI. As I said, it is used to calculate allowances for work income related expenses such as FICA. The AGI figure is not used for calculating the work related allowances as FICA is not charged on unearned income.</p>
<p>However if the AGI is $130k then a 26,000 family EFC and 13,000 EFC seems about right, if not a little low. I am very surprised your brothers EFC would have only been 20,000 last year if the income was $15k higher.</p>
<p>What is his business/farm worth from? Does he own a business that employs less than 100 people - or a farm on which your family home is located? If so, he should make sure he reads the question carefully to see if he should indeed be putting a value here.</p>
<p>Also, are his taxes PAID that much? Sometimes people put their taxes incorrectly. Make sure he's using the number from the correct line on the 1040. Also, income from work and AGI aren't generally the same # for people in your dad's situation. </p>
<p>The bottom line is, make sure your dad is reporting everything correctly. Make sure he is carefully reading the directions & looking at the correct line of the 1040.</p>
<p>However if the AGI is $130k then a 26,000 family EFC and 13,000 EFC seems about right, if not a little low. I am very surprised your brothers EFC would have only been 20,000 last year if the income was $15k higher.</p>
<hr>
<p>$130K was his 2008 income. His income this year will be about 15K less.</p>
<p>What is his business/farm worth from? Does he own a business that employs less than 100 people - or a farm on which your family home is located? If so, he should make sure he reads the question carefully to see if he should indeed be putting a value here.
------His business employs less than 100 people and the net worth is $50K</p>
<p>Also, are his taxes PAID that much? Sometimes people put their taxes incorrectly. Make sure he's using the number from the correct line on the 1040. Also, income from work and AGI aren't generally the same # for people in your dad's situation.
------I know. I thought this was strange.</p>
<p>The bottom line is, make sure your dad is reporting everything correctly. Make sure he is carefully reading the directions & looking at the correct line of the 1040.</p>
<p>He shouldn't have listed the net worth of the business, then. </p>
<p>Has he actually done his taxes? If so, will he let you look at the return to make sure everything was entered correctly?</p>
<p>I'll ask him soon.</p>
<p>If he doesn't contribute to a 401k or have health premiums taken out of his pay (and usually those are done with pretax dollars) then his AGI could be the same as earned income. But AGI will also reflect any interest and dividends that the Earned income won't.</p>
<p>Did he actually run his numbers thru a tax program</p>
<p>btw, the amout of your assets are so low that even w/o the farm thing, assuming you have 2 parents, the affect of the assets on the EFC would be very minimal. </p>
<p>savings of 4500 on income of 130K is VERY VERY low.</p>
<p>13000 EFC on AGI or Earned income of 130,000 is VERY LOW if that is for both students combined. per student is more likely</p>
<p>The fact that his income in 2009 will be $15k than 2008 has absolutely no impact on the FAFSA this year.</p>