Tax Issues? Please Help!

<p>So my parents don't file taxes, which I know is a big issue. Parent 1 does not live/work in the US but Parent 2 does. I'm incredibly worried that this will mess up my financial aid eligibility. I've called a couple admissions offices and I was told to fill out the CSS Profile will estimates and not to do the FAFSA. On the CSS Profile I am indicating that my parents "will not file taxes and are not required to" since that was the closest option to my situation. I have not been able to reach one college office and the financial aid info is due Jan 1. I'm really worried about what to do. </p>

<p>Any suggestions? Please?</p>

<p>First, don’t indicate that your parents are “not required to file” tax returns unless that’s actually true. Lying on your financial aid application is not a good way to start your college career!</p>

<p>Second, since you say that only one of your parents lives/works in the US, are they in fact US citizens?</p>

<p>They are not US Citizens or Permanent US residents.</p>

<p>What is YOUR immigration status? Are you a citizen, permanent resident, or do YOU fall into one of the other categories that permit you to file the FAFSA?</p>

<p>What is Parent 2’s immigration status? In some cases international residents who have income here do not file US income taxes because of specific tax treaties and regulations that govern their tax status. Read up on it at [Internal</a> Revenue Service](<a href=“http://www.irs.gov%5DInternal”>http://www.irs.gov) If Parent 2 is undocumented, and has sufficient income to be taxed, Parent 2 should get a taxpayer ID and use that to file US taxes. In either case, if you are eligible to file the FAFSA, you would use 000000000 instead of social security numbers for your parents, and you would need to print out the signature page, have Parent 2 sign it, and mail it in.</p>

<p>For the CSS Profile, you need both parents financial information (both foreign and US-based) converted to USD at the exchange of the day. It might be helpful to read through some of the threads on this topic in the International Student Forum. The posters in that forum have experience with the Profile and foreign income.</p>

<p>“What is YOUR immigration status? Are you a citizen, permanent resident, or do YOU fall into one of the other categories that permit you to file the FAFSA?”</p>

<p>That is the important question. My guess is that you are a foreign student for college purposes since the schools you have contacted are telling you to complete PROFILE only. Be aware that if YOU are either a permanent resident as described in the FAFSA rules, or a US citizen, you are eligible to fill out FAFSA and get federal aid, even if your parents are not citizens or permanent residents. Otherwise, you are ani international student.</p>

<p>As cptofthehouse said, I am intl for college purposes. I am going to have to file for Non-Cust Profile Waiver since I have not had contact with Parent 1 for a couple years and was never actively “present” in my life. I know about the Taxpayer ID # but Parent 2 has been delaying the process and now is afraid of the penalties and fees associated with back taxes and not filing. It seems like it would be too late to get a taxpayer ID as well? As in, I couldn’t file taxes in time for financial aid deadlines. And thank you for the responses so far, I’m in an incredibly peculiar situation.</p>

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<p>Have a discussion with a tax expert on Nonresident Taxes which are very complicated.</p>

<p>Any suggestions on where I could find one asap or could speak to one w/o being charged? It also seems like everyone is on vacation at this time.</p>

<p>You are not in a particularly peculiar situation. Your situation is very common. Too common, in fact. That’s why so many road blocks to getting aid. Your mother should file taxes for 2012. So you can then say, she will be filing taxes but has not for 2012. If she has no ssn, then use all zeros for the spaces. A lot of undocumented students and paernts have to go through this process.</p>

<p>But then wouldn’t colleges wonder why my parents did not file for 2011 (the college that asks for financial aid info for Jan 1 also ask for copies of W2 forms and tax returns from 2011)?</p>

<p>My parent is worried about penalties and fees for back taxes that we can’t afford to pay.</p>

<p>Simply state taht taxes not filed for 2011. Are there any w2 forms for 2011? Does it look like your mother owes back taxes?</p>

<p>No W2 forms from ever. And I would assume so? I’m sure there’s penalties for not filing at all. I don’t think income over the years she’s been working in America ever surpassed 30,000. It has decreased over the years and for 2012 it’s probably around 15,000 which means college is not affordable without substantial aid.</p>

<p>If you do some quick calculations, you might be able to see that she did not owe and therefore did not have to file for taxes. If you run the numbers for 2012, she probably doesn’t owe. I would let the colleges know that she did not file taxes and give estimates of her income, and wait and see what evidence they will ask for what she earned. You are not the first to be in this situation, so don’t be shy about asking from help at the financial aid offices. You may found a fin aid counselor that will help you with this on a more personal basis. I live in NY, and yoru situation is common around here. I wish you good luck. Make sure you have some schools on your list that are dependent on selection and financial aid for you to attend.</p>

<p>I’m not exactly sure what calculations I would be doing. I tried using an online TaxAct thing but it was a lot of info to fill out and there were several spots I was uncertain about. I think the income cut off for a HOH is around 12,000 (?) so I don’t think she would be qualified for an exception. Curious to know if your a tax person/accountant/enthusiast or something similar? </p>

<p>And whattayaknow, I live in NY :).</p>

<p>IF you live in NY, as I do, you should look into VITA program which helps people in your mother’s situation. Your mother easily qualifies. I am not a tax person so please do not construe anything I am writing as advice in that area. I do know that your mother can file taxes even as an undocumented worker as hundreds of thousands of such do each year using an ITIN whiich you get with a form w-7 the first time she files. For her and for you, having a tax record can be helpful in getting legal status in the future.</p>

<p>In NY, you are eligible to get in state tution rates if you have been going to high school here for a certain number of years. That may be an option to also investigate. Again, I wish you good luck with this, and please do not feel you are alone in your predicament. IT is all too common.</p>

<p>Thank you! It appears VITA clinics are closed though. If I do file taxes for this year, I will not make it in time for fin aid deadlines (getting an ITIN takes around 6 weeks I think). I understand that it’s worth it for future situations but still leaves me in a tax-less position for applying for financial aid from colleges even though I would be indicating that she will be filing for 2012 (as per your suggestion from your earlier post).</p>

<p>You can do both Profile and FAFSA with estimated numbers and then update them after she files, or determines she doesn’t need to.</p>

<p>OK! I will try that then. I really hope things work out! Some colleges do mention that submitting the FAFSA is not necessary if I am not a US Citizen or US Resident. The plan is the use estimates on the CSS Profile and indicate that I will be filing taxes for this year but have not yet done so. Then, when my parent does get an ITIN, we will file officially and update my CSS Profile. I definitely know for sure that I will not make it in time for my early decision college (notification comes first week of Feb and aid package follows soon after) but hopefully I can work something out with them. [Theres high probability that I won’t get accepted to said college so problem might adverted, though that’s the optimistic way to look at an incredibly depressing outcome].</p>

<p>Thank You so much guys!
I don’t think I can PM yet but if you have any more advice or info you can post it here and I’ll get it :).</p>