<p>On fafsa, there is a question where you have to enter the amount of deductible contributions to a traditional IRA. The fafsa formula then adds that amount back in to your AGI when the EFC is calculated. I don’t know how or if that would affect the calgrant issue.</p>
<p>Yes, annoyingdad, that was a bummer when I saw that. Any contribution to an ira is counting back in as income and increases our EFC so I don’t know what to do now. Any other ideas? It’s so frustrating to be this close…</p>
<p>I can’t find exactly what they base the blue and gold uc program on other than it says “income less than $80K.”</p>
<p>Fido, clear your PM box, it is full.</p>
<p>I do not recall where CalGrant gets the value, but AGI on your tax return will be different from income on FAFSA, just as the definition of a dependent can be different for FAFSA & your tax return.</p>
<p>I Googled Cal Grant and it looks like it is utilizing the FASFA, but it would be interesting to know which line they use.</p>
<p>Interesting factoid, they use the FAFSA or the CA Dream act forms, I wonder if a citizen can use the dream act form and if it is any better for you?</p>
<p>Another possibility is that the Cal Grant is good for one year after graduation, if desperate, maybe he could take a gap year?</p>
<p>Fido- At the schools that my 3 kids attend, UC Davis, Cal Poly and an out of state private, you can file a special circumstances form during the year if your income has changed or you have other situations. Specifically at UC Davis their filing period is late in the year and if they find your need should be increased they retroactively adjust your aid.</p>
<p>Thanks, just cleared the inbox, sorry.</p>
<p>Here is the $ round up in a nutshell just for the chance and hope that someone knows $$ and can tell me if there is anything we can do:</p>
<p>DH made exactly 81639.67. I found out that we had a capital loss of 1758.39 with no gains or dividends because he closed an account back in July so now we are at 79881.28. I can’t find out exactly what the interest income is that I have to now add back in but it’s around 160 so now we are again over by just 40 dollars or so. Whatever the interest is, it’s more than the 118 that would keep us under $80K-bummer.</p>
<p>I called an accountant who was nice enough to talk to me and said I could make an IRA contribution up to $6K to reduce my AGI but he didn’t know any thing about EFCs, college financing or Blue and Gold, etc… We don’t know if Blue and Gold is based on AGI or gross income and can’t find the info even here on these boards. Dh also made $2400 contributions to a 503B that comes out of his check before taxes and shows up on his w2 in box 12a so I guess somewhere along the line that is added back in too on the FAFSA. We have one other 13 year old child and no assets so to speak of, don’t own a house, ds didn’t work other than making a little tutoring money-very little and our EFC now stands at almost $13K. This year, DH’s salary will be back down $65K since the $14K was a one time payment in 2012 and his salary was cut about 5% for 2013.</p>
<p>So does anyone else have ideas having exact figures and see how darn close we are!?</p>
<p>Ok, I know nothing about Cal Grants or Blue and Gold or whether this is applicable but I found this reference that says the income limit for Cal Grant A&C for 2013-14 for a family of 4 is $83,100. Last year the limit was $80,100. Is this applicable to you and does it help?</p>
<p><a href=“http://www.csac.ca.gov/facts/2013-14_income_ceilings_new_apps_renewing_recips.pdf[/url]”>http://www.csac.ca.gov/facts/2013-14_income_ceilings_new_apps_renewing_recips.pdf</a></p>
<p>This Formula:</p>
<p>Adjusted Gross Income
- Total untaxed income and benefits
Total additional financial information
= TOTAL INCOME</p>
<p>is on page 32 here:</p>
<p><a href=“http://www.cccsfaaa.org/docs/conferences/2010/presentations/E6_BeginnersCalGrant.pdf[/url]”>http://www.cccsfaaa.org/docs/conferences/2010/presentations/E6_BeginnersCalGrant.pdf</a></p>
<p>It’s 2 years old but may still apply but doesn’t explain what Total untaxed income and benefits are nor what Total additional financial information is.</p>
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<p>My understanding is that you may NOT use the Dream Act if you’re eligible to file FAFSA. It’s one or the other - and you don’t get to choose.</p>
<p>And fidoprincess’s kid can take a gap year, but it would mean reapplying, since none of the CA schools he’s applied to will defer admission.</p>
<p>I thought we did qualify for the CalGrant program until just 10 minutes ago since it said the income ceiling is $83100 but now I see we don’t since we have to add back in DH’s 2400 and our interest income so that is a bummer. Cal Grant is worth almost $10K to us and is used for any school, private or public in California.</p>
<p>The dream act doesn’t apply to us but since I was thinking we could get Cal Grant I was trying to see if we could adjust the income to also qualify for the Blue and Gold UC program that just says the limit is “under $80K” and we are so close.</p>
<p>I don’t know what we will do. If he can’t get the CalGrant, we are sol. If he got the CalGrant, I found the form for the UCs to appeal for the blue and gold but they wouldn’t do the appeal until July and you have to SIR in May so we wouldn’t know if he could afford to go. This is so bad…</p>
<p>Can you contact some one at a UC and talk to them about the Cal Grant, ask for an experienced long time employee, not an intern. They might know more about how CalGrant would view the special circumstances. You might also PM Kelsmom, she won’t know CalGrants, perse, but she could know if the special circumstances adjustment could be processed in time to have that info given to CalGrant people</p>
<p>According to their website, the California Student Aid Commission (CSAC) Customer Relations Branch accepts phone calls Monday through Friday from 10 am to 11:45 and from 1 pm to 4:45. Telephone: 1-888-CA-GRANT (1-888-224-7268).</p>
<p>Thank you all once again. I think with the info that annoyingdad posted, we might still qualify for CalGrant but not the UC blue and gold. Whatever I would do to try to adjust income, like making the IRA contribution, only gets added back in so it actually makes it worse.</p>
<p>Right now it looks as thought the CalGrant ceiling is based on the formula annoyingdad posted
Adjusted Gross Income=81639.67+interest~160-loss of 1758.39==
- Total untaxed income and benefits=here is where we have to add back in the 2400 (403B)
Total additional financial information=nothing that applies to us
= TOTAL INCOME 82441which is under the 83100 for Cal Grant (oh so close!) and if interest is more or the loss is less, we are out I guess and we are definitely over the blue and gold “under 80K limit”. </p>
<p>Thanks to all for helping me think things all the way through before I ran out and put the IRA contribution in the mail-yikes, adding that back in if I did the full amount of $6K would have put income at over 88K! It doesn’t make any sense to me if I took out money from my savings and moved it over to my IRA that that would be considered INCOME-geez, I wouldn’t have believed that ever.</p>
<p>Thanks again everyone and if you have any more ideas, I’d love to hear them. I will take the worksheets to an accountant and also call someone at the UCs but am still open for any ideas-or I am still grasping at straws!!!</p>
<p>The Cal Grant was the most important to qualify for because if you don’t get it as a freshman you can never get it later but I think we can appeal the blue and gold like 3younguns said and even if you don’t get that the first year, we will qualify the next without question.</p>
<p>Thanks Dodgersmom! I think I kind of have to start again from scratch and print out and do all the worksheets just to double check. Then I will call to get help so thanks for the number.</p>
<p>Geez, I already changed the FAFSA 3 times and I guess it doesn’t look good to do it over and over but we were already picked for verification before all the changes because “somehow” instead of saying 1040, we said we would submit a Puerto Rico tax form!! Yes, no one can touch it but me now…</p>
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<p>The IRA contribution isn’t being considered income. You could make the contribution and not take the deduction and there wouldn’t be a problem. It’s when you take the deduction that reduces AGI and thus EFC that the deducted amount has to be added back to AGI. The government and colleges believe that contributing to retirement rather than funding your kid’s education with the money is a choice, a choice that other taxpayers or college donors shouldn’t make up for. If you do want to make a contribution and not take the deduction, then make it a Roth contribution.</p>
<p>annoying, so, if someone has a 401K at work and can contribute $5000 pre tax, that isn’t counted against them, while someone without a 401K program can’t contribute to an IRA without it counting against their AGI? If that’s the case, then I would say that really isn’t “fair”, is it? (Note, I hate to use the word “fair” since nothing is in life…)</p>
<p>Pre-tax 401k contributions are added back in. They also reduce AGI by reducing W-2 wages. If deducted, traditional IRAs reduced AGI via the deduction. Any after-tax contributions such as Roth 401ks or IRAs or non-deductible tradtional IRA contributions don’t reduce AGI and aren’t added back in.</p>
<p>In some cases, certain retirement contributions are not added back for FAFSA. Those appearing on the W-2 in Box 14 are not added back. An example of this is a state employee where the employee does not have a choice whether or not to contribute (i.e. contributions are mandatory).</p>
<p>Hmm…so, if you are in the private sector, and you are contributing to your 401K as your retirement vehicle, that is used against you. However, if you are in the public sector, per Madison85’s example, and money is “involuntarily” taken out for your retirement, that isn’t held against you? If that is the case, where a private individual’s 401K is obviously not guaranteed in any fashion, while a public sector employees retirement is guaranteed, wouldn’t it make even more sense to have that contribution to their retirement count against them as it does a private 401K holder? Just sayin…</p>
<p>The point is how much income you have available to spend on your kid’s college costs. If you are required to have the contribution taken out of your pay, it can’t be available for college whereas if you voluntarily contribute, it could be if you choose to use it for college instead of retirement.</p>
<p>Annoying, I fully understand the concept. However, if the private sector’s primary vehicle for retirement is a 401K, and the public sector essentially has a guaranteed retirement plan which is deducted from their paychecks automatically, the Public Sector employee makes out in two ways. One, they have a GUARANTEED retirement benefit coming their way and two, they can show a reduced income for FAFSA purposes. Just making the point that it is a bit inequitable; then again, the FAFSA is an antiquated tool that doesn’t take a number of factors into consideration (including regional cost of living amongst other things) that it should.</p>