<p>Okay so my parents just informed me that they have yet to file their 2007 tax returns (my father has a habit of not doing taxes on time). So when I fill out stuff for financial aid... what happens? Am I completely screwed for fin aid and relegated to getting no money if I don't have our 07 returns? They have 06... and that's it.</p>
<p>Assuming you are you are talking about financial aid for 2009-2010 school year:</p>
<p>FAFSA for 2009-2010 is not available until January 1 2009. You will need 2008 tax returns for this. You can enter estimated figures to get an estimated award but no aid will be disbursed until 2008 taxes are actually filed (assuming your parents earn enough to be required to file a return).</p>
<p>If you are applying to schools requiring css/profile then you will need to check the school's deadline. You will probably need 2007 tax returns and estimated 2008 income. Then you will need to update with 2008 tax information once it is complete.</p>
<p>Deadlines are very important for financial aid. There are often priority deadlines which will give you the best chance of aid. Missing these means you may miss out on aid that has limited funding.</p>
<p>What if 2008 tax return is going to be SIGNIFICANTLY lower than years before.(I am quite sure I am not the only one in this boat.) Is FAFSA based solely on that return or do they look at years prior? Is each year determined by the year before-for instance do they readjust while the child is in school if the numbers change drastically?</p>
<p>The FAFSA is very year specific. It only looks at the one specific year they request: for 2008-2009, it is only the 2007 return; for 2009-2010, it will be the 2008 return.</p>
<p>That being said, if there is a significant reduction in earnings, schools have the ability to perform a "professional judgment". You and your parents will need to provide a lot of documentation showing the reduction in income and the reasons for the reduction. If it was choice, ie. mom quit her job to spend more time at home, the school will typically not approve the professional judgment. If the reduction was uncontrollable, illness, layoff, etc, they they are more willing to take the reduction under consideration.</p>