Please help me understand FinAid implications of my new small business. Have I screwed our family?

I don’t know how your tax return goes automatically to the college. Most people have to mail forms or use idoc. But that is initiated by you.

Do you mean linking the tax return to the FAFSA with the IRS retrieval tool? The FAFSA will only ask for 2015 income and that’s the return that will be linked to the 2017/18 FAFSA.

Unless like sybbie said, the college can request other info. But FAFSA and CSS profile now use prior prior year.

Yes, I meant the data retrieval tool. Sorry for the confusion there.

This is amazing news. I feel like a huge weight has been lifted. So if I understand correctly, and both FAFSA and CSS are using prior-prior year, her 2017-2018 senior year cost should be the SAME as what we are paying for 2016-2017. If that’s true, that’s wonderful. Every year I have not been able to budget or make financial decisions until July when the FA award letter came, which obviously made things difficult because it was halfway through the year! But if this is true, then I will know NOW how to budget for 2017. Wow.

Yes, the income will be the same, but your EFC can still change because assets are reported as of the day you file FAFSA. So if your assets are higher in October versus February, then EFC can be somewhat different.

But income usually has more impact on EFC than assets.

I actually just got off the phone with my D’s school’s FA office and they confirmed exactly what you’ve said. I’m just so incredibly relieved.

And I also am so happy for all the future parents who will know be able to plan their year’s finances at the START of the year rather than having to wait until halfway through the year to find out what they will own for college. This is a wonderful change!

Yes, I believe that was the intent, to be able to provide financial information earlier for students and parents, and basing it on already completed tax returns.