<p>Profile may not be your best option, as it will take into consider more of your assets than FAFSA, such as your primary home and non-custodial parental income and assets (if there is a non-custodial parent). Despite the 1040A vs 1040 issue, most people crave FAFSA only schools...don't think I have ever head of someone asking for a Profile only school...which doesn't exist, as the FAFSA is a federal requirement for federal aid.</p>
<p>Hey Atticweb,</p>
<p>Check out the Instructions for the 1040A. Pages 12-14 outline which third party items get reported where and when a 1040A can be used versus the 1040 is required.</p>
<p>For a 1099-B (Broker and barter exchange transactions) "Must file Form 1040." There is no distinction between gains and losses, unfortunately.</p>
<p>Appreciate all the feedback.</p>
<p>Just when you think you're finished... I did what Lunar_eclipse suggested and checked out the instructions for the 1040A. First it says flat out that you can use it if you have capital gains. Then on the details, it states you only have to use 1040 in you have an amount in Box 2b, 2c, or 2d (1040A</a> (2007):%5D1040A">http://www.irs.gov/instructions/i1040a/ar01.html#d0e1826):)</p>
<p>Line 10: Capital Gain Distributions</p>
<p>Each payer should send you a Form 1099-DIV. Do any of the Forms 1099-DIV or substitute statements you, or your spouse if filing a joint return, received have an amount in box 2b (unrecaptured section 1250 gain), box 2c (section 1202 gain), or box 2d (collectibles (28%) gain)? </p>
<p>I'm looking at my 1099-DIV in question for last year, and box 2b is zero and there are no boxes 2c or d. If this is correct, I could have filed 1040A, again a difference in my EFC of $20,000.</p>
<p>?</p>
<p>Based on the rules and information you posted, you could have used 1040A.</p>
<p>We get some dividends and we are able to use a 1040a. I thought from what you had posted previously that you had something that could not be put on a 1040A such as a stock sale. You need to check with your tax preparer, or software if that is what you use.</p>
<p>So, Lunar_eclipse, I also got a 1099-B for the same transaction just mentioned. I don't see anything in the 1040A instructions about if you got a 1099-B (see my post #24 for link).</p>
<p>Atticweb - #27 doesn't seem possible - It is possible to sell a stock, say GE, and received a 1099B reporting the sale (gain or loss) and also receive a 1099DIV to report the dividends it earned while you owned it. </p>
<p>It is also possible to lose money on the value of the stock when you sell it but still have a nice dividend earned. For example - you could have bought GE for $40 and sold it for $15 = a $25 loss to report on Sch D and also have earned $8 dividend on 1099DIV. The stock is the same but the transactions are not.</p>
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<blockquote> <p>Insane, show me the Profile only schools please! >></p> </blockquote>
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<p>Hmmm....I'm not sure there are any Profile ONLY schools. There are FAFSA only schools.</p>
<p>Just an FYI to everyone here. This is an internet message board, not a professional service for taxes, financial aid or anything else. Many folks here do have experience in these areas, but none are brokering their services (or should be anyway) through this site. Most of us have experience in filing these financial aid forms, and most of us are not professionals in these fields (although some professionals graciously post here...and I thank them for their expertise a LOT). BUT if you really need or want a professional in your area of question, you need to hire someone, not rely on a message board. You can certainly get guidance or ideas here...but hiring someone to handle your individual need would probably serve you better.</p>
<p>Atticweb, </p>
<p>Instructions 1040A, page 13, Section: When Must You Use Form 1040?. "Check Where to Report Certain Items...1099 beginning on page 12 to see if you must use Form 1040."...</p>
<p>Instructions 1040A, page 12, "1099-B Broker and barter exchange transactions, Must file Form 1040"</p>
<p>I'm no tax expert, just a parent trying to determine if my kid filing for the first time can use 1040A or 1040EZ. Am reading the sections "Who Can Use Form 1040A" and "When Must You Use Form 1040". Good luck.</p>
<p>...thumper has me afraid to say anything else. He speaks for everyman it seems.</p>
<p>I'm also just trying to "figure it out." Apparently the IRS online instructions are in error? Oh no, I can't ask that!</p>
<p>Geez.</p>
<p>Listen, we're just trying to help. I'm not a tax expert and I totally understand that the IRS instructions can be confusing.</p>
<p>FWIW, I use taxactonline deluxe edition and it really helps me do MY taxes.</p>
<p>I'm not looking at online instructions. I'm looking at the paper Instructions. You can get them as a PDF online from the IRS website. Are you really seeing discrepancies in online help and paper instructions? If so, for a 20K difference I'd be paying a tax pro for clarification and tax planning.</p>
<p>I agree Thumper. Many of the IRS and FAFSA rules change so often it is hard for even professionals to be 100% up-to-date on every situation.</p>
<p>Atticweb: in your post #20 you say you have a 1099-B. That means you have gross proceeds and have to report it on a 1040. You cannot use a 1040A even if it's a loss and you choose not to claim the loss. That is because the 1099B shows the amount of the gross proceeds (the sale amount) but not the basis. It does not tell the IRS that you have a loss. Only a sale. If you leave it off the return, you WILL receive a notice from the IRS asking for the tax on the sale amount.</p>
<p>Also agree with #29 about not being professional tax service--But, I must admit, the board often gives enough good information regarding taxes or the FAFSA to direct a person in the right direction. I have found the postings very informant many times. They also shed light on how two people can see a question two different ways. We are all just trying to file the information correctly.</p>
<p>In a previous thread about this topic, I remember sommeone had the same issues....that there were just a couple of items that made them IN-eligible to file the 1040A/EZ.</p>
<p>They made changes such as getting rid of the small investment that incurred capital gains and replaced it with one that did NOT have yearly capital gains, and if I remember right the other things were making sure NOT to overpay state taxes and be due a refund and changing their child support agreement vs alimony somehow.</p>
<p>None of these are "fixable" in a current year when you become aware of them, but are things you can look at for down the road next year maybe.</p>
<p>Remember too, if I understand right, that the Simplified Needs Test only eliminates looking at ASSETS, not INCOME too.</p>
<p>FWIW,</p>
<p>DJD</p>
<p>What confuses me is why would it matter what type of return you file 1040/1040a/1040ez? </p>
<p>Why would filing a long form because you had a stock sale and/or state refund but were still under $30,000 or $50,000 yield a higher EFC than filing a 1040a or 1040ez?</p>
<p>Why couldn't you still qualify for simple needs based on low income?</p>
<p>Because them's the rules. I would be curious to know the thinking behind it. </p>
<p>We had to file a 1040 a couple of years back because we had a small ($100 ish) taxable state tax refund. It meant we could not qualify for simplified needs. Our income was the same. Just the tax return type was different. Don't understand why that is a requirement. But it is.</p>
<p>I dont have time to look it up, but my understanding is this;</p>
<p>Simplified Needs Test means that you INCOME counts, but NOT your ASSETS.</p>
<p>An example if you have low income (<49,999) but high assests, and you qualify, your assets aren't counted. Different examples I have seen on here over the years are; lump sum life insurance payouts that you might need for many years to replace a spouses income, farm/woodland that was inherited but provides no income, an extra piece of property that is in a joint ownership situation but you are unable to borrow on it or get income from it.</p>
<p>These assets MAY affect your EFC if you dont qualify for SNT.</p>
<p>Im not as familiar with the Zero EFC @ less than 30,000 income.</p>
<p>So as to the question of :</p>
<p><<<"Why would filing a long form because you had a stock sale and/or state refund but were still under $30,000 or $50,000 yield a higher EFC than filing a 1040a or 1040ez?>>>></p>
<p>I THINK it would only matter if you had ASSETS above the "exemption" level, which varies by age, number in household, etc...
In my case I think that exemption was $40,000 of ASSETS. We didnt have that much in countable assets, so it din't make a differnce anyway.</p>
<p>DJD</p>