Questions about taxes/assets

<p>I worked in 2009 and made $1794. My mom brought the W2 to the preparer and was told that because I received a W2, I have to file taxes. Is this true? Do I say that I filed taxes on the FAFSA/CSS?
Also, how much does the amount of money in my and my mother's savings/checkings affect my chances at financial aid?</p>

<p>Not true. If that was all you earned (and you had no other unearned income such as interest or dividends) then you did not earn enough to *have *to file a tax return. However if you had any State or Federal taxes deducted then you may want to file in order to get those taxes refunded to you. Rather than pay a tax preparer you can do it for free yourself. The IRS web site has links to free software, such as turbotax, that you can use to prepare your taxes and efile. Quite simple, the program will walk you through it. </p>

<p>If you did not have taxes deducted and do not have to file then you say will not file on FAFSA. If you had taxes deducted and file to get them refunded then you would report this on FAFSA. Your income is below the student income protected allowance so will have no impact on your EFC.</p>

<p>[Free</a> File Home - Your Link to Free Federal Online Filing](<a href=“http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=7]Free”>http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=7)</p>

<p>Money you have in savings will impact your EFC by 20% of it’s value. Your Mom will have a protected asset allowance based on her age. Anything over that will affect the EFC by around 5.6%. But if your Mom is low income (under $50,000) and meets other criteria, assets may be ignored i the EFC formula.</p>

<p>I didn’t have any taxes deducted, but my mom filed taxes using my W2 (under my name). Do I indicate that I filed taxes, or do I say that I don’t have to file taxes?</p>

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<p>Are you saying that your mom included YOUR W-2 earnings in HER taxes? If so, she needs to amend her taxes. I do not believe she should have done this. </p>

<p>Or are you saying that your mom filed taxes FOR you using your W-2 (perhaps her preparer did this?)? If so…then yes…YOU have filed taxes. It doesn’t matter who prepares and files your taxes (many folks use tax prep folks to do this)…if it’s your tax return with your social and your earnings…then YOU have filed.</p>

<p>Re: the “do I need to file” question. That can also vary by state. One of my kids worked and earned a pittance in our state. BUT the state law is that IF state taxes are deducted from your earnings, you MUST file in this state. So…she filed. It was really stupid because no federal taxes were withheld…just state taxes. But she had to file here. The following summer, she specifically asked that NO state taxes be withheld (she had to fill something out for that to happen) and she hasn’t had to file since. Perhaps this is the reason you had to file…perhaps it had something to do with earning income in your state.</p>

<p>Wow - so many things wrong with that. If a tax prep company files taxes in your name you, not your Mom, would generally have to sign a form allowing them to efile for you. You are not required to file, even if you have a W2, if your income is below the amount where you are required to file. I hope they didn’t charge your Mom for that. If you did file a return then you will have to say o FAFSA that you filed a return. It won’t make any difference to your EFC.</p>

<p>Hopefully your Mom did not include your income with her taxes. if so she incurred unnecessary taxes.</p>

<p>^^^I Didn’t think about the State taxes. Our state you don’t have to file State if you don’t earn enough to file federal.</p>

<p>No, she didn’t include my W2 in her taxes. My mom had filed taxes for me using my W2. The preparer had told my mom that because I worked and received a W2, I had to file taxes even if there were no tax deductions.
Another question: "Enter the amount of medical and dental expenses your parent(s) paid or expect to pay in 2009 that were not covered by insurance or a medical or dental plan. "
^ Does my mom include her copay, or just the medical/dental expenses?</p>

<p>Include the co-pay. That question is asking you how much you and/or your parents spent on medical/dental costs. That will include anything that was not paid by your insurance company, including co-pays, any amount you paid before reaching your deductible amounts, any portion of bills you paid after your insurance company paid their part, also include the cost of health insurance if your mom pays it herself (or whatever portion she pays for if her employer pays for the rest.)</p>

<p>Do not include any payments on bills paid by your insurance company or reimbursed to you by your insurance company for bills you paid. Do not report any insurance premium costs covered by an employer or anyone other than yourself or your parents.</p>