Taxes and the fafsa answers (loans)

Parent Cafe
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<p>My son has private loans under his name but he is our dependent. Do I report his private loans and grants under the parents side of the FAFSA? Also, he made $600.00 under workstudy for the year, do we need to report this on the FAFSA under the student or not? Do we qualify for the Hope or Lifelong credit when filling taxes? Once again, the private loans are under the student name having his father as a co-signer. Help!</p>

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<p>They are all reported under the student if they are required to be reported at all. WS and any taxable scholarships/grants are not reported on parent taxes, but are reported on his own return if he has enough income (including his work study income and scholarships/grants that are taxable) to file a tax return. If he does not have enough income to file a return (@ $5400 for earned income - taxable scholarships are considered earned income - different rules if he has any unearned income) but had any taxes deducted from income he should file anyway to get a tax refund.</p>

<p>If he files a tax return then his WS income and his taxable scholarships/grants are included in his AGI which you report on FAFSA under the student income question 36. The EFC formula does not use Scholarships/grants/WS income in the calculation of the EFC. So you have to report any WS/taxable grants/scholarships that are included in the student AGI in question 47c and 47d so they can be deducted by the EFC formula from his AGI so they do not increase the EFC.</p>

<p>Is there a place on FAFSA to report student loans? I don’t recall my daughter ever reporting her student loans on FAFSA.</p>

<p>You may be eligible for the hope tax credit. As you are claiming him as a dependent you can claim the credit if eligible (if you were not claiming him as a dependent only he could claim the credit). There are rules regarding income levels etc. The rules for the Hope credit are in IRS 970 pages 9-17.
<a href=“http://www.irs.gov/pub/irs-pdf/p970.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p970.pdf&lt;/a&gt;&lt;/p&gt;

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<p>Thank you so much for your help!</p>