<p>I've recently begun work on applying for FA and was confused as to why schools were expecting a 2012 Tax Return by February, considering the deadline for returns is in April. Have other families applying for FA in years prior simply finish their returns earlier than usual in order to get them in by the deadline?</p>
<p>I believe that’s correct (that families complete their tax returns early). Also, I don’t think the February deadline for the tax returns is a drop-dead deadline as are some of the other deadlines.</p>
<p>I think, if you read the FAQs or fine print, the PFS and/or schools will accept you using estimated figures from your 2012 tax return and submitting the actual return when it’s completed and filed.</p>
<p>As an example, this is from the FA FAQs of Andover:</p>
<p>" We understand that your current Income Tax Return may not be prepared by our application deadline. Therefore, we ask you to ESTIMATE your tax information on the Parents’ Financial Statement (PFS) and submit the most recent tax return available. As soon as your current year Income Tax Return is complete, we ask that you mail a COPY to:</p>
<pre><code> SSS by NAIS - Application Processing Center
P.O. Box 449
Randolph, MA 02368-0449
Remember, as mentioned above, we must have a copy of your most recent Income Tax Return with schedules before we can confirm your financial aid scholarship award."
</code></pre>
<p>The FA deadline for every school we applied to was 1/31 or 2/1. It is true of GG’s school now, as well. You’ll do an estimate of 2012 and send in actuals for 2011 and possibly 2010, if schools request it (some ask for 1 prior year, some for 2). You will fill out a form that allows the schools to pull a copy of your tax forms for current or prior years (to make sure what you show is what you actually filed). While you are required to fill out the form, the schools will pull actual copies at their discretion.</p>
<p>Having been in the FA loop for many years, I’d say it’s a great way to get organized about your tax filings! 
(yes, I know many folks don’t receive W-2s and 1099s till the end of January)…</p>
<p>What we are doing to be on the safe side is have our tax preparer do an estimated tax return (since new tax laws change every year) and are turning that in, once we file our final return in March we will send that in to the schools as well. I spoke to one AO and they confirmed that this is helpful to them and would be sufficient.</p>
<p>Boarding schools can’t wait until April because they need the month of February to determine an applicant’s financial aid status. Remember, the letters of acceptance and financial aid packages goes out on (or arrives on) March 10th. So they need the information well before that.</p>
<p>Most people can estimate their income and tax liabilities based on their final paychecks for the year. Business owners keep track of income and liabilities throughout the year anyway. So it’s not to estimate based on data from the previous year’s tax forms and the current year’s income to arrive at a rough draft. By January - other statements such as mortgage interest, etc. are available.</p>
<p>This is NOT an issue if you don’t need financial aid. In that case you simply pay the full tuition and don’t hassle with the PFS forms at all. But FA families have to jump through the additional hoop. As HailuMu said - it’s a good way to get organized early and it’s not an unreasonable expectation given that the parents may be expecting the school to give their child tens of thousands of dollars of aid in return.</p>
<p>This past year our family went through a major income change. We went from about $100,000 in yearly income to about $35,000 when I had to stop working to take care of my disabled husband and elderly mother. Our 2011 income taxes have us at $100,000 but in 2012 our taxes will show us much lower. With the 2012 taxes being submitted once completed will this hurt us with our situation? We do not have much savings and pay a huge amount in medical expenses (husband and mother).</p>
<p>Suggest you explain this in the notes section of the PFS and send a side letter to each school.</p>
<p>We were told FA decisions are primarily based on CURRENT year (i.e. 2012) income and estimate of next year. So while explaining will be a good idea, I would highly recommend having your accountant prepare a non-filing estimate early. Our accountant says it doesn’t make particularly more work, since she just plugs in the new numbers when final tax forms are in. She LOVES having the bulk of our work done early, and makes extra effort to have as accurate a return done for us as possible, knowing we need to submit it for FA.</p>
<p>Not working in order to care for parents is important to explain. Like caring for young children, it is one of the few things that will keep you from having income imputed especially since it sounds like this will be a situation going forward. Especially since it sounds like your mother is now a dependent (since you are paying her medical expenses in addition to your husband’s). </p>
<p>It is worth having a conversation with the FA officers of the schools to which you are applying. While the level of need is obviously going to be higher (which puts you in a more competitive applicant pool), if your dc is accepted, your income puts you in a threshold of full FA for many schools. That’s a big difference from your 2011 situation.</p>
<p>… oh, by conversation I mean an actual phone call, not just a letter. At this time of year, expect delays and phone tag.</p>
<p>Our financial aid application is due January 15, however, our W-2 and 2012 tax returns may be submitted until February 15. You should be able to find the details for your child’s school on the website under Financial Aid FAQ’s.</p>
<p>@preplovr22 - That is a dramatic change in income and should definitely be noted in your application. There is a section to note any out of the ordinary circumstances. Also, it would be to your advantage to let the financial aid office know your situation and need for increased aid. While interviewing last year, a financial aid officer recommended sending an email asking about scholarships and financial aid in an effort to “get on the radar.” I hope that 2013 brings good things your way.</p>
<p>I highly recommend contacting EACH school your child is applying to that you plan to request FA from individually if there are remaining questions regarding their process/ how & when they want info received.</p>
<p>I called each of the schools my daughter has submitted her app to, to confirm what we are turning in by Jan 15 is sufficient to start the FA process. I got a different answer from each school.</p>
<p>One school even said not to worry about tax forms until after March 10th, that particular school doesnt decide FA until after student is accepted and decides to attend this school.</p>