Parent asset allowance went down?! And delayed FAFSA

<p>Wow, how did I miss this? For a 50 yr old the parent asset allowance went down from $40,900 to $34,600. What could possibly be the reasoning behind this?</p>

<p>I'm a little stressed this year anyway, because we had some unusual financial events and I cannot file our FAFSA until I get all my 1099s. My son's college specifically states that you should try to file taxes before doing FAFSA (he will be a sophomore.) Hopefully we can take their word for it and he won't be penalized. He did receive a small Perkins loan this year, but kind of expected that to disappear anyway. I am nervous because I inherited some money this year, part of it being a taxable annuity and an unfortunately unnecessary distribution from a beneficiary IRA. I absolutely don't mind paying extra with the windfall, but now am scared that next year his aid won't bounce back up when the money is gone.</p>

<p>End rant :)</p>

<p>Yes, the assets allowance went down significantly the year before also. For 2012-13 the allowance for a 50 year old, two parent family was $46,600. Has to be something in the funding limits determined by Congress. The single parent allowances are and have been a sad joke compared to the two parent allowances.</p>

<p>And how did this “delay your FAFSA”?</p>

<p>This didn’t delay my FAFSA. Inheriting a brokerage account and never having had to deal with a 1099b and not knowing the details of the tax withholding on the rmd of the beneficiary IRA will. I also have no idea how to calculate capital losses on the sale of inherited municipal bonds, so I am going to have to wait. It is just hard because I did it on January 2nd last year, but I don’t feel confident enough to estimate accurately this year.</p>

<p>Why don’t you buy some tax software…HR Block’s federal basic software is on the shelves at Walmart for under $15. Since you are not versed in 1099B’s, simply use the interview method. Answer the questions. This should be a close enough estimate to file your FAFSA using the “will file” option for your 2013 tax return.</p>

<p>After you compile all your tax paperwork, you can complete the process.</p>

<p>Thanks, I just picked up TurboTax so I’ll give it a whirl. The school does say on their website that for returning students the priority deadline for FAFSA is April 1st, and to go ahead and file tax return first, but everything I have read here and elsewhere suggests it is better not to wait. Hence my uncertainty.</p>

<p>Hopefully the 1099-B will have detail showing the cost basis (normally for inherited investments, stepped up to FMV at date of death), the proceeds and the gain/loss, by item.</p>

<p>Can you ask your broker for a transaction history/printout that would show you the sales details for 2013? I will be awhile until you get the 1099-B.</p>

<p>Similarly with the income in respect of a decedent (IRA) you received; was there a statement with the distribution showing whether any fed/state income tax had been withheld or did you just receive a check and you are not sure whether it was gross, or net of tax? If you didn’t receive this detail, can you request it now instead of waiting for the 1099-R?</p>

<p>Does anyone know how to post in the threads? I have to ask something</p>

<p>You just did post in a thread. If you mean start a new thread, there’s a “New Thread” button just above the list of threads.</p>

<p>@madison85 Yes, the distribution from the IRA just came as a check with no withholding info, it was actually a mistake because my mom had already taken her rmd from another account, but not knowing what it was, I deposited it so that was that. My broker tried to get in touch with them, but couldn’t get through, at least that what she said. I am assuming there was tax withheld, but not 100% positive, and not sure what the rate was. I do have all the trade confirmations after liquidating, it’s just those munis that have me befuddled! So I am hoping the broker will provide basis on those. I am so thankful we did not have this situation to deal with freshman year.</p>