<p>I have a question and was hoping one of you may help me.</p>
<p>Finaid.org notes under the Simplified Needs Test Chart the following:</p>
<p>"Since 1999-2000, taxpayers who itemize deductions on Schedule A of Form 1040 are now considered to be required to file a 1040 and hence ineligible for the Simplified Needs Test"</p>
<p>Would like some clarification on this. Must I always file 1040 even if my situation has changed and now able to file 1040A/EZ and meet requirements. Is this a FAFSA requirement only? Not sure if the IRS requires me to always file a 1040 just because I used Schedule A in the past?</p>
<p>You will fill out FAFSA every year. I could see a possibility that one year a person could have Schedule A deductions because of medical expenses and want to fill out the long form for the higher deductibles and not be able to check the 1040EZ/A on the FAFSA and the next year not have those expenses or want to fill our 1040 and be able to check the box on the FAFSA forms. The IRS forms and the FAFSA forms are two different things.</p>
<p>No, the election to file 1040A or EZ is made each year, based on the type of income/deductions you’re claiming. If you want to file 1040A and become eligible for the simplified formulas you can do so provided IRS rules don’t force you to file 1040.</p>
<p>Can’t the person be eligible for simplified needs with an income below $50K and eligibility for one of the needs tested benefits (like food stamps, free lunch)…?</p>
<p>It is the tax return you file for the year you are reporting on your FAFSA that matters. It does not matter what type of return you have filed in other years. There are some other things that make you have to file a 1040 - the one that bit us one year was a refund for overpaid state taxes in the previous year - we had overpaid state taxes by around $100 the previous year and had itemized, so the the refund the following year meant we had to file a 1040 because , and this made us ineligible for simplified needs (we didn’t meet any other requirements).</p>
<p>@thumper - yes - you have to meet the income requirements *and *one of the other requirements. Off hand, the others are the 1040A/EZ eligibility or a family member receiving means tested benefits or a parent being a dislocated worker.</p>