Parents Work Abroad, No Tax Returns

Paying for College
1

Hi All,

I am filing my FAFSA/CSS profile, but my dad (not U.S. citizen nor permanent resident) works in China and has a small business, while my mom (a permanent resident) has retired and receives retirement distributions from China government. They made under $21,000 when I convert their income to dollars. Both of them do not file tax return in U.S., which means I have no documents to back my information up. Under this circumstance, is it likely for me to get financial aid? Also, should I get any documents from China government just to prove their income? (It’d be really hard for me to do it, though).

BTW, I’m currently living with my aunt in U.S., but she’s not a court-ordered guardian so I cannot use her income information.

Thanks in advance!

2

Do your parents file tax forms in China?

3

I think your mom would need to report her retirement income on her US tax return. US permanent resident is required to report worldwide incomes, not just US incomes. Your mom needs to talk to a tax expert.

4

Madison85 -
My dad does file tax but there’s no such documents as tax returns in China.

5

4kidsdad -
Good to know - thanks for helping!

6

What form does your dad file?

7

If you file your FAFSA correctly, the schools will estimate your financial aid for you. Many schools will work with you to verify your parents’ incomes and assets in order for you to get the actual aid.

8

How much aid do you need? How much can your parents pay each year for 4 years? What are your stats? Are you a senior-where are you applying?

9

FAFSA is fed aid which isn’t much.

What schools are you applying to?? Many of the schools that give the best aid will require CSS Profile and they’ll want PROOF!

10

@ucbalumnus
This student may be going to a Calif high school while living with his aunt (no custody). Parents live abroad.

If he graduates from a Calif high school, he qualifies for instate rates, correct?

If so, does he qualify for Cal Grants? does he qualify for instate aid??

11

If your mother has a SSN, you might be able to fill out the FAFSA online using her info, and checking the ‘non-tax filer’ indication. You still have to fill in the income, whatever the source, and I’m pretty sure (like (100%) that you’ll be chosen for verification. But that’s okay, lots of people have to do the verification. You’d have to submit the non-filer form and any records of income that you have, even if it is just a letter showing her retirement funds and your father’s record of income (even if hand written).

I don’t know about the CSS.

12

Please have your mother talk to a tax professional ASAP. US tax laws require filing in most cases - even if she would owe no taxes. Penalties for not filing can be harsh. Best to get a clear picture on that first. Once she files - you have good documentation of at least her financial status.

13

If your parent us a is citizen/ permanent resident while you may be eligible for aid and get a financial aid package, it will not be disbursed until you provide an IRS transcript or non filers statement.

14

https://www.irs.gov/individuals/international-taxpayers/frequently-asked-questions-about-international-individual-tax-matters

yes, have your mom check with a tax professional to see if she must file US tax return.

15

https://www.uscis.gov/green-card/after-green-card-granted/maintaining-permanent-residence

also how long has your mom lived in China as a US permanent resident?

16

Your mom may have lost her GC status