Tax returns for financial aid

<p>Is it beneficial to file a tax return for 2007 when applying for FAFSA.</p>

<p>I selected "not going to file" and I am considering changing the question to "will file." If I dont have a spouse do I leave the spouse income blank or place a zero?</p>

<p>In addition I selected "Did not, and not required to, file an income tax return" in the CSS Profile, but provided information for student assets and income.</p>

<p>Will the colleges use the "student" information provided on the CSS profile or will the student information be ignored because I am not filing a tax return for 2007.</p>

<p>This is really confusing me and I have been researching for several hours already.</p>

<p>Sharing any experiences or thoughts will be great.</p>

<p>I am not sure at all of the answers to your questions, as I can't tell if you are a dependent on anyone else's IRS forms. If you are a dependent, your parent(s) have to fill out the CSS and the FAFSA and you put their info as well as your own info regarding income and filing. They will use all of the info they are given. If you are not required to file, they will definitely use that info, and will calculate your Estimated Family Contribution based on the numbers you give them. Be careful about the dependent stuff, though. Schools will want your parents, if you are not emancipated or are a dependent, to pay what they can for your education.</p>

<p>If you are not required by the IRS regulations to file a tax return, then don't file one. If you are required by the IRS regulations to file a tax return (interest income over a certain level, income from a job over a certain level, etc.), then file one. Don't file one just because of financial aid.</p>

<p>The colleges will use the information on your Profile regarding student income and assets regardless of whether you file an income tax return. For example, financial aid calculations consider the amount of assets you have, while tax returns don't - taxes consider only the income from those assets.</p>

<p>The only issue regarding filing and the Profile is that if you file a return the numbers had better match or make otherwise be consistent between the two forms - no fudging allowed.</p>

<p>I am a dependent student.</p>

<p>Do most people still file a tax return even though they have zeros in every category?</p>

<p>I put Not Going To FIle for my tax return in 2007. In the question immediately after the tax return question, I am asked the "Student's type of 2007 tax form used." I cannot leave the answer blank too. </p>

<p>It seems like the FAFSA assumes the student is going to file a 2007 tax return.</p>

<p>Does filing a tax return with zeros verify that the student cannot pay for any of the college tuition? Would that help one's case for financial aid?</p>

<p>Most people only file a tax return if they are required to by law (earnings of a certain amount) or if it is beneficial for them to do so (for instance my dependent daughter had a job but is not required to file a return but taxes were deducted which she will get back by filing a return).</p>

<p>Do the schools determine the amount of aid received by the "will file" estimates on the FAFSA or by the actual tax returns done in 2007? </p>

<p>My dad does not want to file the tax return for 2007 until April and I do not want that to jeopardize the amount of Financial aid I will receive.</p>

<p>Some additional information:
I first submitted my FAFSA with an "already completed" status but then corrected it to "will file" (I thought my dad already filed). Will the schools use my corrected FAFSA application to allocate financial aid or will they just look at my initial application.</p>

<p>Thank you fellow CCers for the quick responses.</p>

<p>My understanding is they will base a preliminary offer based on the current FAFSA filed then will change it once you correct your FAFSA. Your final award package will be based on the corrected FAFSA.</p>

<p>DD was not required to file a tax return two years ago, and she indicated that on the FAFSA and that was it. Her income is still reported on it...but she didn't have any money taken out, and her earnings were minimal, and she had no interest income. Last year she had fed income tax taken out and wanted a refund...so she filed and we indicated that. This year, again, she had NO deductions, and is under the income threshold...and the interest one as well. I doubt that she will file. When we did her estimated FAFSA this year, she indicated "will file" but after getting her W-2's that is up in the air. Some of her filing or not will be determined by IF she needs to do this to get the tax rebate...if she is even entitled to the tax rebate!!</p>

<p>From what I have read you have to have earned $3000 in a job in 2007 to get the $300. My D just misses it though her income is over that when you factor in taxable scholarships.</p>

<p>Someone else asked if a person can get it if they are claimed as a dependent on someone elses tax return. I am not sure how that works.</p>

<p>Well...there is also the question of what constitutes a "child". I'm assuming if my kids get added in and <em>I</em> get the rebate for them being my kids, that they would not also get it for earning over $3000. Too many questions...none of them answered.</p>

<p>And do you HAVE to file a return to qualify because if DD has to file, she will.</p>

<p><a href="http://www.fafsaonline.com/fafsa-form/fafsa-form-step-2.php%5B/url%5D"&gt;http://www.fafsaonline.com/fafsa-form/fafsa-form-step-2.php&lt;/a&gt;&lt;/p>

<p>This is a website that recommends filing a tax return even if the student does not have any income.</p>

<p>Any thoughts?</p>