<p>My mom told me that I won't need to fill out a tax return since I didn't make that much money this year, and I will only get back $12. I was just wondering if this will affect my aid need in any way.
Also, where can I find out if I need to file state and/or local income tax returns? Just want to be in the clear :)</p>
<p>I would file it anyway and get the $12 back! Don’t give them $12 you don’t owe - they will want every $1 you owe in the future!</p>
<p>The IRS web site has a free file option - you select an online software provider and the program walks you through everything and you can file online for free.
[Free</a> File Home - Your Link to Free Federal Online Filing](<a href=“http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=4]Free”>http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=4)</p>
<p>The cut off for earned income for federal tax is @ $5400 for 2008. It is lower for unearned income and there is a formula for a combination or earned and unearned. You would need to check with your state for their cut off.</p>
<p>It will only affect your aid if your income is over the FAFSA protected income allowance (@ $3800 this year I think). ANy income over that 50% goes to the EFC. Or if your income was over the allowance last year but is not this year then it could reduce your EFC (except all other information - parents income/assets, your assets - are unlikely to be the same).</p>
<p>Thanks for that link.
I’m glad I asked this question, since I made a lil above 3800.
Thank you so much for your help. :)</p>
<p>If you are just a little over it may not have an effect on your EFC. There are allowances for things like FICA deductions (@6.75% of earned income) which makes the actual limit a little over $3800 (assuming the income was earned and you had W2s etc).</p>