I am filling out the Fafsa for need based financial aid but I was told that I would need to fill it out using this years tax reports? My dad had a pretty high paying job when we filed for taxes this year but he lost his job around the begging of the summer and did not get a new one until a couple of weeks ago and this job pays much lower. Would I just fill out the fafsa with the tax information and wait till the little to no need based aid that I will get and the appeal to the schools financial aid office? Has anyone been in the situation? Thanks in advance to whoever responds.
What is the deadline?
All my colleges have different fafsa deadlines @coolweather
Are you currently a senior applying to colleges?
You need tax year 2015 (which will be file before 4/18/2016) for 2016-2017 FAFSA (which you may file on 1/1/2016).
You need tax year 2014 (which should be filed by 4/15/2015) for 2015-2016 FAFSA (which you could file from 1/1/2015 to 6/30/2016)
If your dad lost his job in 2015, the 2016-2017 FAFSA will factor in this information and you may appeal the 2015-2016 financial aid to your financial aid officer. However, your dad’s 2015 income may not be lower than 2014 due to the severance pay and /or unemployment insurance.
If you are currently a high school senior, your FAFSA won’t become available for filing until January 1, 2016. You will need to file the 2016-2017 form.
If your parents have not completed their taxes, you can complete the FAFSA using a “will file” status…and using excellent esttimates for the 2015 tax year.
Then ASAP after February 1, get those taxes completed. This is not the year to,wait until April to,do,your taxes! Then go back into the FAFSA and put in the numbers from your tax return, change the status to “taxes completed” and resubmit. You will likely have to link to the IRS Data Retrieval tool…and this usually can’t be done until about 2-3 weeks after your taxes are complete.
And remember…when you do the estimated FAFSA, you should be using 2015 information…so this will take into account the income from 2015 only.
@4kidsdad @thumper1 I emailed one of my top schools and asked them and they said that I would have to use the tax info from 2014 which was filed in 2015 and than I would have to appeal but the apeal would not take place until after the 2016 academic year has begun. This is so frustrating because my dad was making 80k and now he just got a new job about 2 weeks ago and will probably only make about55-60k a year.
Yes, you need to fill out the FAFSA as described above, using the income from 2015.It is what it is on the form. After you file FAFSA, file an appeal with the FA office of the school(s) you will be attending. There you can explain the change in income and how the 2015 taxes do not reflect the current financial situation.
The FAFSA itself doesn’t have a place for explanations. A huge reduction in salary can make a difference. Say your parent earned $100k per year at the first job but only $50k per year for the second. Income for 2015 would be 1/2 of $100k and $50k, or $50k + $25k for 2015 income of $75k which won’t get you much federal FA. However, the income for 2016 will only be $50k, so the FA officer can use professional judgment and treat the 2016-17 year based on the $50k.
Most schools have an appeals form on the webpage and list the documents needed (letter from employer, copies of taxes and paystubs, explanation letter).
What FAFSA are you completing NOW? If you are a HS senior, you cannot complete the 2016-2017 FAFSA NOW…it won’t be available for completion until January 1.
And when it becomes available, you use your best estimates for the 2015 tax year. Period. Then get your taxes done, and amend to reflect the 2015 tax return information.
@thumper1 @twoinanddone I am just confused on which tax for fafsa I would use. Im guessing I wouldnt have time to file all the w2’s once 2016 begins so I would haveto use last year’s which shows his high income?
@purpleacorn yes i am
For the 2016-17 FAFSA, you will use 2015 taxes. You can use 2014 taxes to ESTIMATE the 2015 taxes which you won’t have ready on Jan 1, or you can (and I think you should in this case) use the final paystubs from the job he worked Jan-June in 2015 or and the final paystub from the new job worked July-Dec.
When you file, the FAFSA form will ask if you have filed (no) or if you will file (yes). It then ‘knows’ that the 2015 figures are estimates. Once your parents actually file, say Feb 1 or so, you wait a few days and then go back into the FAFSA program and use something called the Data Retrieval Tool and like your filed taxes to your FAFSA. If your parents don’t file electronically, it takes longer.
You are not stating what your income is (the $100k salary or the $50k salary) on the FAFSA, you are using the actual tax filing information (earned $75k in 2015).
He didnt work a job in 2015 from end of may till begging of december. & so you are saying that I dont have to rush to send in my fasa right when if opens on the 1st? I can wait until after I file everything from the 2015 year to send it in around February are you positive? Because some schools lik Bucknell university have a deadline of January 15 which would give me no time to file my stuff from the 2015 year. @twoinanddone
You’ll need to file with estimated information to meet the 1/15 deadline and then go back and correct once you’ve filed. Even if you haven’t filed for 2015 yet, I would start collecting pay-stubs, etc.
Once more with vigor!
Your FAFSA will become available for filing on January 1. Since you need a lot of aid, I would suggest that you file,your FAFSA on or as close to January 1st as possible. YOU DO NOT NEED YOUR COMPLETED TAX RETURNS AT THIS POINT. You file using a “will file” status, and use the best possible estimates for the 2015 tax year as possible. You should have the information you need as 2015 will be over. Look at the last pay stubs for,the jobs your parents had (you don’t mention your mom, but if she lives with you, and works, her info needs to be included as well). Best estimates for 2015!
You should receive all of your w-2 info by the end of January. ASAP after that, you must complete your 2015 taxes. Do not delay. Get them done ASAP after February 1. You will then go back into your 2016-2017 FAFSA, and you will change the fields reflective of your completed 2015 tax return, and resubmit to the colleges. Oh…and change your filing status to “taxes completed”.
You will need to link to the IRS Data Retreival Tool…and this can’t be done until 2-3 weeks after your taxes are actually filed.
For Bucknell…you will file the 2016-2017 FAFSA using the best estimates possible for the 2015 tax year, and submit by January 15.
Actually, you can submit to all of your schools at that time. It’s easy to amend the FAFSA online once you actually have completed 2015 tax returns completed.
But use excellent estimates for 2015 when completing that will file FAFSA before your taxes are actually completed.
Haha thank you so much! I finally got it now @thumper1
So schools would be able to see that my dad had a job that paid 80k from january to end of may, then unemployed from may to beggining of december and now only has a jobthat pays 55-60k? & my mom works too but its not too much. Me and her combined probably make 5-8k a year and we have a family of 4 with a 3 year old child as well.
Your dad will report his total income earned for the year…add the income from job one to job two. Use the total. That is what the school will want to know.
So…how much did your dad earn from January to May? How much did he earn from December to the end of the year? Add those together.
The school,wants your dad’s casual earnings…not his year,y salary if he had worked all year at either job.
Did he collect unemployment or get a severance package from his first job? Those need to be included as well.
He probably earned about 45-50k together in the year of 2015 and me and my mom combined probably made about 8 k combined.
And his unemployment collection is weird. Before he had his 80k job, he had a another job and that job gave him about 600 a week for unemployment. So he had 1 job & then the 80k job & then finally he has the job now and his job before the 80k one was the one that gave him 600$ for unemployment a week. Which i find weird. But thank you so much for all the help. I was worried that i would have to use the tax report filed from last year and now that i know that i dont, it takes some weight off of my shoulders. @thumper1
Just do not miss any of the DEADLINES…not even by one minute. Submit your financial aid applications on time.
Also, check to see all the requirements your schools have. Some schools require the Profile, some have their own form…and all the deadlines are different.
You will need to include your dad’s earnings from both jobs and his unemployment money. And any severance he might have received from his old job. All of this should be on your estimated FAFSA. Accurately.
So i should file the fasa right when it opens up on jan 1 & the once all the taxes are done, go back and complete the fafsa for a final submission?
@thumper1