<p>Like everyone else we completed our financial aid package using 2009 tax returns. I work as a independent consultant and picked up a new client mid year and am making a lot more money than 2009. I was not sure how long this position would last but it does look like I will continue on this project for a while. Meanwhile my husband's position was up in the air all year long but so far so good and he's still hanging in at his job. So my question is - should I tell the financial aid office we are making more money or is financial aid always based upon what you made in the previous year?</p>
<p>No you don’t have to tell them until you apply for next year’s financial aid. Financial aid for the 2010-2011 year will be based on your 2009 income. You will have to report the 2010 income next year and that will be what your 2011-2012 financial aid will be based upon.</p>
<p>Swimcat is right.</p>
<p>However, be prepared for a lot less aid next year. You may not qualify for any free aid if the increase is that much.</p>
<p>As noted, you are not required to inform the college of you additional income this year. It WILL appear on your financial aid application forms for NEXT year, however. As Mom2 noted, just be prepared.</p>
<p>I will say…(and this is NOT directed at this OP…who inquired)…I find it interesting that folks DO tell the colleges when they have less money and need more aid…but not so when the family has a windfall and needs less aid.</p>
<p>Just saying.</p>
<p>Earning that money may be more than it is worth. See if the clients can pay you in cash, then don’t report the additional earnings on your taxes. </p>
<p>If your income in increased, your hard earned tax dollars are just going to be given to someone who isn’t working as hard as you are.</p>
<p>
</p>
<p>Haroldtower, please don’t give advice to folks that could land them with a tax evasion charge. Regardless of how you are paid, you are supposed to REPORT your earnings on your taxes.</p>
<p>Thumper1, Swimcatmom and momof2collegekids - Thanks for your response. I too was wondering why you can appeal to get more aid but aren’t required to report if you need less aid. We are prepared next year to not receive any aid but wanted to be certain I should not be paying more this year. Harold Tower - I am not looking to get out of paying for tuition I can afford or taxes I should be paying. It would be illegal for me to not report income made for both tax purposes and financial aid. I would much rather do things on the up and up. What kind of example would I be setting for my son if I am not honest on his financial aid application? Children learn by example…</p>
<p>Jsmom – obviously the advice in post #5 is criminal and wrong – but as an independent consultant it may be possible for you to defer at least some of the income earned in 2010 until 2011. It really depends on the type of work you do and your billing practices – but do at least keep in mind that money received on December 30th is going to impact 2011 financial aid, whereas money for the same tasks received on January 2nd won’t have a financial aid impact until 2012. </p>
<p>I don’t think there is any issue of ethics if the payment arrangements still fit within the range of what is reasonable or normal for your type of work. I mean – in my line of work, I have all sorts of options: I could bill hourly and send out a bill every month; I could bill a fixed rate for a clear set of responsibilities, and send out regular bills; I could bill by the project, and structure payments over the course of the project. I actually do bill different clients on different schedules, depending on the nature of the work. It also depends on your clientele – businesses generally like to close their books by the end of the year and would not want any delay in billing, whereas individuals might be very grateful if you cut them a break and gave them a few extra weeks to pay.</p>
<p>Harold, shouldn’t you be off at some TeaBagger rally somewhere?</p>
<p>Moderator Note: This forum is strictly for the nuts and bolts of how FA & Scholarships work. Any political opinions should be expressed on the Parents Cafe - Elections & Politics subforum, not here.</p>
<p>* will say…(and this is NOT directed at this OP…who inquired)…I find it interesting that folks DO tell the colleges when they have less money and need more aid…but not so when the family has a windfall and needs less aid.*</p>
<p>Although it will be apparent when they file next year ( or even decline aid), but since money seems to be ephemeral, unless the windfall is so huge that you will never be wondering how to pay for the mortgage again- I would just maybe make a nice donation to the scholarship fund.</p>
<p>Our family anyway has been bitten in the butt too many times thinking that " this level of work/income is going to be consistent for a while" and done things like " take a vacation" or " buy a car that is less than two years old!".
And then have to deal with big health care costs, the other car breaks down, or the roof falls in.
It’s like tempting fate.
:p</p>
<p>*Harold, shouldn’t you be off at some TeaBagger rally somewhere? *</p>
<p>*This forum is strictly for the nuts and bolts of how FA & Scholarships work. Any political opinions should be expressed on the Parents Cafe - Elections & Politics subforum, not here. *</p>
<p>I agree…it is very insulting to assume that those who support lower taxes and smaller gov’t would support fraud. One has NOTHING to do with the other</p>