<p>I get different answers to this depending on which website I'm looking at. Some indicate that I would qualify for the Simplified Needs formula in that I could have used 1040A because I took the standard deduction (did not itemize) and have a family income below $49,999. Others say that if I have a number in line 13 of the 1040, I can't. I have a negative number in line 13, and again, I took the standard deduction. Do I qualify for using 1040A and using the Simplified Needs formula?</p>
<p>The rule for simplified needs and automatic 0 is that you must be eligible to file a 1040a or 1040ez, not that you did or did not itemize. Itemizing is just one thing of many that may make you ineligible to file a 1040a or 1040ez. If you reported anything (other than certain education credits such as the Hope credit which they make an exception for) that require you to file a 1040 (ie cannot be reported via a 1040a or ez) then you are not eligible for the 1040a or 1040ez so are not eligible for the simplified needs. Line 13 is capital gains/losses. If you have these the only place to report them is a 1040 which means you are not eligible for a 1040a or 1040ez, so are not eligible for simplified needs (unless you meet the alternative requirements - displaced worker or certain means tested benefits).</p>
<p>that really makes it clear. I was wondering if you know anything about my other post today, re: the look back period and "giving" your land away by establishing an irrevocable trust with a friend as the Trustee? I have seem nothing on the look back, but someone wondered about it as the only potential obstacle.</p>
<p>Capital gains distributions from mutual funds also go on line 13 of the 1040, and you can use a 1040A if you have these only (no sale of assets). Since the OP has a loss on line 13, it is obviously from a sale of assets, so 1040 is required. It depends on what the number on line 13 came from.</p>
<p>Oh ok. I usually make sure to point out I am not a tax expert by any means. As it is a loss does he have to report it?</p>
<p>...that is my latest question. If I decide to be a good American and not claim the capital losses and pay more taxes, can I file the 1040A?</p>
<p>I believe so.^^</p>
<p>I don't think Uncle sam is going to hunt you down for not claiming a loss (can that be carried forward and claimed in a future year??)</p>
<p>The law states you must claim all sources of income...nothing about having to claim all losses or expenses.</p>
<p>The thing you need to keep in mind, having looked at both of your posts, is that private colleges search out every dime. Thus the joke that EFC stands for every f****** cent. While FAFSA schools may overlook and miss things, the privates are used to folks trying everything in the book in an attempt to get aid and have the staff to scrutinize.</p>
<p>One college official who posts here told tales of people pulling up in new luxury cars pleading hardship. Expect the privates to go through everything with a fine toothed comb.</p>
<p>What's with that? We've been doing a prestigious private college for two years that uses just FAFSA. Also, please see my response to you in other thread. As for pulling up in a limo, not likely as I am LEGITIMATELY poor (not that it's any of your business), haven't worked in over six months, my wife at 59 can't, and like everyone else, have lost a good percentage of any "retirement." (Work until you're 75? Yeah, right.)</p>
<p>hmom,</p>
<p>That was me....but guess what, my private 4-year LAC is a FAFSA only school, with no desires to use Profile ever.</p>
<p>I do not know of any prestigious private college that is FAFSA only. I guess some might consider NYU prestigious, but they give such crummy aid it's irrelevant for most.</p>
<p>Look atticweb, I have little sympathy for those who would take the action you suggest to try to beat the system. And I was earnest in my warning that I think many private colleges would catch the scheme.</p>
<p>You seem a bit out of control. The only reasons I'm in here asking question is to be sure I DON'T "beat the system," that is, that everything I do is up and up. That doesn't mean I'm not trying to do what's best for my family. In this case, I'm simply trying to find out if I can legitimately file a 1040A. So far, the intelligent answers seem to lean toward, yes I can. I'm still looking for the absolute "no question about it," but I'm getting enough answers from those you seem to know that indicate that I am eligible (which is the criterion) that I am re-doing my FAFSA to say YES I could have used the 1040A. Without changing my total assets line (leaving the same as it was before), this lowers my EFC <em>legally</em> by about $20,000. So when the financial office tells me "Can't do anything, it's all based on FAFSA," I can say, hey, what can I say, it's all based on FAFSA.</p>
<p>Thank you for the straight talk answers. Just wondering if you consider yourselves tax experts in any way. Do you prepare others' taxes?</p>
<p>"While FAFSA schools may overlook and miss things, the privates are used to folks trying everything in the book in an attempt to get aid and have the staff to scrutinize.
One college official who posts here told tales of people pulling up in new luxury cars pleading hardship. Expect the privates to go through everything with a fine toothed comb"</p>
<p>CSS Profile is, indeed, a murky business, but if the "profile" it presents to the FA people at the college shows some hardship, it will most likely culminate in a better FA award than the FAFSA. Information about such things as cars (older models as opposed to recently purchased or leased) and residence (no mortgage but estimated value on the lower side) will, even if accompanied by a modest income in the 80-100 thousand dollar range, present a picture of people who have made sacrifices in their daily lives. I think the profile is an interpretive tool to see how much fat can be trimmed, and if you're lean and mean chances are you won't be needing to cut back on that European vacation this year because you haven't gone on one since the little tykes popped out of the oven. That's my read anyway: relativity.</p>
<p>Nobody has an obligation to pay a penny more than they legally have to, either in taxes, or in college expenses.</p>
<p>It's in a parent's best interest to prepare for college financing by learning how the process works, and what the rules are, in order to get their finances in the best possible position, in order to maximize the possibility of getting aid. Legally and ethically.</p>
<p>Seems to me OP's questions were in that vein.</p>
<p>No I'm not a tax expert. I am a budget analyst so numbers are 'my thing'</p>
<p>And I'll respond to the person who said NYU gives crummy aid. I got news for you. My EFC is 11K and my son got 30K per year in scholarship money from NYU. I guess it depends if they want the student enough. NYU has been wonderful to deal with, in fact they gave him an extra 1K last semester just for asking.</p>
<p>Attic,</p>
<p>I've been a professional tax preparer for 15 years and a financial aid administrator for almost 5.</p>
<p>Atticweb - Regarding line 13 capital/gains/loss question. If you receive a form 1099DIV to report dividend income only then you can file 1040a. If you received a form 1099B which records stock/mutual fund transactions then you would be required to a file a Form 1040 with a sch D. The reason... the IRS is looking for a match in document info, one from the broker house (of the money you received) to match with the information of the sale of stock which would be report on a Schedule D. </p>
<p>The purpose of the schedule D is to let the IRS know, in your case, yeah I received $10,000 but I paid $12,000 so I am reporting a $2,000loss rather then a $10,000 gain. The brokage house is just letting the IRS know you sold something. One way to trigger an audit is to misreport information that the IRS already knows from a third party. The audit could take two years to show up and sometimes they show immediately for math errors.</p>
<p>Another example of document matching... the IRS will correct your return if you misreport the information they received from your employer on your W-2. For example, if you said you had $1000 withheld in tax but actually it was $100, it would be corrected. </p>
<p>Taxes are complicated and I think many errors are from lack of understanding. Try Turbo Tax, you enter the forms (W-2, 1099DIV, 1099B, etc and the program selects the form in belongs on. It will also let you see if you will need 1040 or 1040a.</p>
<p>NikkiL, Findmepete seems to make sense, unfortunately, as I do have one measly little 1099B for taking some money from a mutual fund. Another post said that they had to use the 1040 just because his dad overpaid his state taxes and the resultant form had to be submitted on 1040. FAFSA is crazy; if you have such a minor item as these, in my case, it can mean the difference between an EFC of $23,000 and $3,000, in effect a $20,000 penalty for taking $1,000 from my liquid assets. Insane, show me the Profile only schools please! Do they make any more sense?</p>