If a parent’s dependent files an 1040 can the student still qualify foe the SNT and automatic zero EFC if the parent meets the 1040A and income requirement?
I have search the web and some sites say all members of the household and others only mention parents.
Corrected typo in thread title for searches
ED
Filing the 1040A is one of three possible requirements in addition to the income threshold.
Someone in the family could also qualify for a means tested benefit like SNAP, free or reduced Lunch etc.
OR
Parent could be a dislocated worker.
Do either of these apply to this family?
We never applied for a means tested benefit. As for dislocated worker, it is hard to say.
Bottom line, will I qualify if my student files an 1040? I am asking because my student is interested in selling on EBay or Amazon. That would require reporting a small amount of income. As far as I know, this would requiring filing an 1040 and reporting it as “other income”. She currently files an 1040A due to scholarship income.
The parent tax return is the only one that matters for a dependent student and SNT.
Also…the 2017-2018 FAFSA is going to use 2015 tax return data. What did you all file in 2015? That is already done!
I am set for 2017-2018. Was concerned about 2018-2019 which uses this years return.
Kelsmom, thank you for clarifying. I was confused since this was listed on the finaid.org site which appears to be wrong.
"An applicant qualifies for the simplified needs test if the parents have an adjusted gross income of less than $50,000 and every family member was eligible to file an IRS Form 1040A or 1040EZ (or wasn’t required to file a Federal income tax return). (Please note that starting in 2004, the AGI threshold for IRS Form 1040A and IRS Form 1040EZ changed from $50,000 to $100,000. Nevertheless, a threshold of $50,000 is still used for the simplified needs test.) "
Here is the language from the Federal Student Aid Handbook (the financial aid officer’s Bible):
The simplified formula is basically the same as the regular formula except that asset information isn’t considered in the calculation. A dependent student qualifies for the simplified calculation if
• the parents’ combined AGI (for tax filers) or income earned from work (for non-filers) was less than $50,000, and
• either (1) the parents were not required to file an IRS Form 1040, (2) one of them is a dislocated worker as defined in the Workforce Innovation and Opportunity Act (see Chapter 2 for a description of dislocated worker), or (3) anyone counted in their household size received a means-tested federal benefit during 2014 or 2015.
Thank you for the reference. I found the handbook online. All 1300+ pages. I am extremely glad that I don’t have to read all of it.