Sorry if this has been asked before - I Googled, looked on institutions’ websites, and searched CC but couldn’t find answers.
My mom is my custodial parent. She’s self-employed and we are extremely low-income (EFC of $0) so she always applies for an extension on her taxes, since she can’t afford to pay them by April. (Example: she filed 2014 returns in late October 2015.)
I’ve already completed the FAFSA, CSS Profile, etc. The only financial aid requirement I have left is submitting 2015 tax returns. My dad’s (NCP) will be ready in February, so that’s no problem. My mom is required to file taxes and will eventually file 2015’s return, so we can’t do a non-filer statement.
My question is: can we submit my mom’s 2014 tax returns? Some colleges explicitly say they’ll accept them (like Pomona). Others say they require 2015 tax returns, and it’s ambiguous if 2014 tax returns are allowed (like Amherst). And is there a way to do it on IDOC, or will I have to submit to each college individually?
Is this something I should contact individual colleges about? I’m not really sure where to go from here. Thanks.
I didn’t know that was an option - clearly I don’t know anything about taxes haha. She actually hasn’t even gotten her W2’s yet, so I guess when the time comes I’ll suggest that. Thank you!
Getting an extension of time to file until October 15th **does not **extend the time to pay (i.e. interest and penalty starts accumulating on amounts not paid by April 18, 2016 regardless).
In other words there is no point in extending if the only reason is she has no money to pay the taxes due.
Tell her to file as soon as she can.
By the way - you say she is self - employed and that she hasn’t received her W-2 yet. Self-employed people don’t receive a W-2 for self-employment income.
Your mom should get in the habit of sending in estimated tax payments during the year.
Being low income and head of household with one dependent (do you have siblings?) I don’t expect her to owe much federal tax, but probably self employment tax.
If she always ends up with a big tax bill all at once this should help because it is a little money at a time and not all at once.
It would also help with any penalties and interest for an amount she owes thus saving money.
She could do her taxes earlier because the money has already been sent in during the year.
If you expect a very low EFC it is very important to file FA forms early but also to get the taxes done early because the schools won’t finalize FA awards without proof of current year income, I.e. 2015 tax return.
Yes, I believe that you can be put on a payment plan for an outstanding tax bill.
I’m not sure why exactly she files self-employment. She works for a business but she’s paid on commission and uses her car for work, so I think it’s more for those expenses.
I told her about the requirements and she said she’ll definitely be able to file by March. I guess we’ll figure out payment at that point, but now I definitely understand the importance of filing early. Thanks very much to both of you!