<p>As a single parent, my income is less than $50,000. I would have filed a 1040A but I filed a 1040 solely to claim a tax credit (installed an energy efficient gas furnace). My son and I checked that I could have filed a 1040a on the FAFSA, but one of the colleges changed that that on the FAFSA to a "no" I couldn't file a 1040A because they believe that the "solely to claim a tax credit" only applied to an education tax credit.</p>
<p>The result is that our EFC went from around $2,700 to almost $9,000, and my son no longer qualifies for the Pell Grant which was $3,100. </p>
<p>I've pointed out to them that page 41 of the Application VErification Guidelines says "a tax credit" not an "educational tax credit."</p>
<p>Does anyone know who is right? I thank you for your help!</p>
<p>Thanks Swimcatsmom. As you say the financial aid website is a bit out of date and I noticed it does allow some credits as it doesn’t list each credit not allowed in sequential order so that must mean some credits are allowed. since this is a 2009 credit, I don’t know whether it qualifies or not.</p>
<p>Could you tell me how to get to detailed FAFSa instructions that you quote?</p>
<p>Why do you think the following does not apply to us?</p>
<ol>
<li>Eligible to file a 1040A or 1040EZ. Indicate your eligibility to file one of these forms (even if you filed or will fill a 2009 IRS Form 1040). Answer “Yes” if you</li>
</ol>
<pre><code>* make less than $100,000,
do not itemize deductions,
do not receive income from your own business or farm, and
<p>Yes, thanks mom4college. The credit is $1400. The amount of the Pell Grant that we would lose is $3100. The EFC went from less that $3000 to almost $9000, and I think other grants are tied to the EFC–ones that we won’t be eligible for at the $9000 level.</p>
<p>I also don’t want to pay back the refund I received if I don’t have to. </p>
<p><a href=“1”>quote</a> Anyone included in the parents’ household size (as defned on the FAFSA) received benefts during 2008 or 2009 from any of the designated means-tested Federal beneft programs: the Supplemental Security Income (SSI) Program, the Food Stamp Program, the Free and Reduced Price School Lunch Program, the Temporary Assistance for Needy Families (TANF) Program, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC); OR
the student’s parents fled or are eligible to fle a 2009 IRS Form 1040A or 1040EZ (they are not required to fle a 2009 Form 1040)
, or the parents are not required to file any income tax return; OR
the student’s parent is a dislocated worker.
[/quote]
The rules are that you have to be eligible to file a 1040a or 1040ez. Certain choices such as itemizing make you ineligible to file a 1040A or EZ. And a lot of non choices also can make you ineligible to file a 1040a/ez. The vast majority of them are not mentioned in the list on the instructions so it is not a comprehensive list. For instance we were ineligible to file a 1040a my daughter’s first year of college because we had a taxable state tax refund of less than $100. (I hopefully tried putting I did not know if we were eligible to file a 1040A and the school put that we were not and we were not eligible for the simplified needs test despite having an income well below the cut off). That little state refund was costly. Another poster was saying they were ineligible because they receive a payment for jury duty of less than $20. You appear to be ineligible because you claimed a (non education) tax credit which cannot be claimed on a 1040a or 1040ez. Non of these items are on the list but they, along with several dozen other items, all make you ineligible to file a 1040a or ez. </p>
<p>If you can convince your school that they are wrong that will be great. But I honestly doubt that you will as they have set rules they must follow. Let us know if you have success because that will be useful for people in the same boat.</p>
<p>When I verify, I keep a copy of the 1040A handy. If the tax credit is on the 1040A, I know the person “could have” filed a 1040A. If the tax credit is NOT on the 1040A, the answer is NO, they could not have filed a 1040A. It’s more than just tax credits that affect the form that can be filed. I had someone with $20 in jury duty pay the other day … and she didn’t qualify for simple needs formula on that basis. She didn’t have any assets to speak of, so it didn’t hurt her son … but I had to collect asset info to get an official EFC after I changed the answer to the filing question from Yes to No.</p>
<p>If in doubt, look at the 1040A. Could you have put everything that is on your 1040 on that form? If no, then you couldn’t have filed it.</p>
<p>Thanks all. I haven’t given up. I took the simplified needs test chart from the somewhat outdated financial aid website and compared the credits line for line with my 2006 tax return and the line for the residential energy credit is not one of those that requires a 0entry. Nor do the credit for child and dependent care expenses, credit for the elderly, education credits, retirement savings contributions credit, and child tax credit.</p>
<p>The 2008-2009 application verification guide on page 41 says, "Someone who filed a Form1040 solely to claim a tax credit is not disqualified from consideration for the simplied formula or the automatic zero EFC.</p>
<p>I have been trying to find the actual laws, which is really hard as most of the time I just find amendments to this and that and no comprehensive current rules. Presumably it exists somewhere. The thing I have found that seems relevant is
[Section</a> 477 – 1998 Amendments to Higher Education Act of 1965](<a href=“http://www2.ed.gov/policy/highered/leg/hea98/sec477.html]Section”>http://www2.ed.gov/policy/highered/leg/hea98/sec477.html)
<a href=“B”>quote</a> a form 1040 (including any prepared or electronic version of such form) required pursuant to the Internal Revenue Code of 1986, except that such form shall be considered a qualifying form only if the student or family files such form in order to take a tax credit under section 25A of the Internal Revenue Code of 1986, and would otherwise be eligible to file a form described in subparagraph (A); or’;
[/quote]
Then when I searched for section 25A of the internal revenue code it relates only to the Hope and lifetime learning credits, not to other tax credits (as far as I can see). </p>
<p>They do not make the rules easy to find or to understand if you can find them. I hope you are able to find a definitive answer and that it is in your favor. Let us know how it turns out.</p>
<p>Yes, a definitive answer would be awesome. If we aren’t eligible,then I’d file an amended return on a 1040A a lose the energy credit but it would be worth it. I’m concerned that the longer we wait the less aid will be available to him.</p>
<p>My son’s preferred school has verified us as we submitted so I’m concerned they will change their minds when they see how the other school updated the FAFSA to say unable to file a 1040A or EZ.</p>
<p>Thank you for the research into the law–above and beyond! I’ll definitely let you know how it pans out.</p>
<p>That’s interesting that one school verified you and accepted it that way. I think some of these issues are as confusing to the experts as they are to us. This is an interesting thread.</p>
<p>It is also appalling that single parents don’t even get 50% of the protected assets allowances that 2 parent families get. Makes no sense whatsoever.</p>
<p>It is correct that the regs state that filing a 1040 solely to claim a tax credit does not exclude one from the auto 0 or simple needs formulas. That would mean page 2 credits (the energy tax credit is new this year, correct? I haven’t come across one yet where that was the only reason the family had to file a 1040, so I hadn’t even considered that).</p>
<p>Yes, swimcatsmom, a lot of this doesn’t make sense–like your small state tax refund and jury duty disqualifying folks from SNT. the last time I served jury duty I was paid about $20. If I have to serve again, I’ll ask not to be paid.</p>
<p>Kelsmom, are there regulations other than AVG that give any more detail? Yes, it’s a page 2 credit. I don’t believe it is new this year as it is listed on my 2006 tax return as “Residential energy credits. Attach Form 5695.” On my 2009 return, it is line 52, “Credits from Form” and “c” is Form 5695.</p>
<p>That is the guide that is used for verification. Of course, we are currently verifying 10-11 without published guidelines for 10-11 … happens every year.</p>
<p>kelsmom–so then do you think we qualify for the SNT? The college that changed the FAFSA to “not eligible to file 1040A” is supposed to call me back today.</p>
<p>Okay, from what I have been able to gather, taking the alternative energy tax credit does disqualify you from saying you could have filed the 1040A/1040EZ. There is nothing definitive in anything I can find, but it is a “read between the lines” kind of thing that financial aid folks often have to do in interpreting regulations. </p>