Skip parents' assets on FAFSA

Paying for College
1

<p>Two questions...Last year, when a relative helped me fill out my FAFSA, he checked Yes on the question asking if parents could file a 1040A/1040EZ, but he still filled out the parents assets section. This year, I'm filling out the FAFSA, and it has the option of letting me skip reporting parents assets because I checked Yes. I live in California. Should I be skipping the question? I don't think I qualify for 0 EFC because our AGI is >30,000. </p>

<p>Also, is there a way to report capital gains/losses on the 1040A?</p>

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<p>bump…</p>

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<p>I’m not a tax expert…but I would think not. I hope someone with more knowledge responds!!</p>

4

<p>Thanks thumper! </p>

<p>Does anyone know what the downside is to skipping reporting assets?</p>

5

<p>Yes, the downside is if you are selected for verification & it is determined that your parents are not eligible to file the 1040A or 1040EZ and you don’t have federal benefits and neither parent is a dislocated worker. In that case, you will be required to provide asset info at that time, based on the worth on the date you signed the FAFSA. You will be asked a simple question … are the assets > a certain number. If not, you say no & are all set; if so, you enter the number. It’s not hard, and it can save problems in the future. If you are not selected for verification … or if you are & you are eligible for auto 0 or simple needs formulas, which ignore assets … providing the answer won’t hurt you in any way.</p>