I know it’s hard to believe that we live on that income, but we do…I know even $60k a year in the US seems low…
She seems to qualify for EITC but her applicant (who is 100% legit), would’ve known, right? On irs.gov, the calculator said she didn’t qualify because her income is all other income.
Anyways, she has a bank account and has records of that, and she has records of her rent each month, but I don’t think she has a strong record of EVERY time she earns money somewhere…it’s tough…
I’m just worried that if a college (I don’t know if they would, would they?) or whatever asks us for verification in terms of like proof for the income, my mom wouldn’t know what to do and I wouldn’t be able to attend…
Also about FAFSA, it asked “On the day you submitted your FAFSA, did the total amount of your parents’ current assets exceed $32,700.00?”
Since my family assets is below that, I put no, but then the blanks to enter the amount of savings is blacked out. Is that right?
How much is your rent? How much is health insurance, food, clothes, car payment, cell phone, heat, water, gas? How are you living on less than $1000/month? (How much does your mom send to your dad each month)?
“On irs.gov, the calculator said she didn’t qualify because her income is all other income.”
For it to be “other income” it would need to be income from interest on savings, dividends from investments, rent income, etc. Your mother’s income is all EARNED income. Take another look at those calculators. There must be a work-around for self-employed people.
The FAFSA has skip-logic. You checked No, so now those lines aren’t necessary for you to fill out.
Yes. If your asset amount is below that amount, you are not required to complete the asset information…at all.
At this point, do the FAFSA based on the information that is on your mom’s 2014 tax return. Answer the questions honestly, and you will be fine. If you are selected for verification, the schools will tell you exactly what they need to have from you. And if you have any questions, you contact the school and ask.
Your mom’s tax filing situation seems odd to me…but hopefully she has good records of her earnings. Her bank should be able to give her copies of bank statements…or maybe you can get her set up with online banking and then you can access those deposits from your home.
Did you apply to any schools requiring the CSS Profile? I think you said you did. And unless I have you mixed up with someone else, your parents are listed as separated, correct? Did your dad complete the non-custodial parent Profile where required?
If she earned that money from working then it’s earned income, it doesn’t matter if people handed her cash as she walked out the door each day.
I called Collegeboard and changed the marital status to married so he didn’t have to complete the NCP profile.
Yeah, she has her bank statements.
And about other income, on her tax returns, her income is on line 21, and it says Other income: Cash income, so I know it’s earned income…but if she qualified, then why didn’t her accountant tell her?
Can you ask the accountant why s/he didn’t?
My mother doesn’t want to go anymore because she said she went there too many times…
She keeps saying that it’s because she can’t provide the name and phone number of the place she works at…
On her tax returns, her income is listed next to other income, not next to Wages, salaries, tips, and other taxable employee pay.
It’s possible she;d have a refund of $1800 or so if she did go, money that could be used for books or whatever for college. I don’t have any idea why her income is listed as “other” and not “wages”, it should be on a Schedule C if she is self-employed.
I think the OP is right, it’s because she can’t provide doc. When a paid preparer claims the EITC for a customer, form 8867 has to be filed with the return: Paid Preparer’s Earned Income Credit Checklist
http://www.irs.gov/pub/irs-pdf/f8867.pdf
Part IV has a bunch of checkboxes to be checked demonstrating that the preparer has done due diligence in verifying information. Part V is a checklist of documents the customer provided to the preparer and the preparer relied on to claim the credit. I’m not sure any preparer would be willing to take the risk of signing off on the EITC given the nature of the mom’s income and documentation.
But aren’t tax returns already filed? What can she do this year now? Yeah and I don’t get the other part either…her CPA did that.
@annoyingdad, yea seems right. What kind of verification would FAFSA or a college want from me?
Anyways, I think I’m thinking about filing her taxes on TurboTax so I know what’s going on…is that easy to use? Is it possible to use in our situation for next year?
Yes it’s possible and at her income level it’s also free. My kids do their own taxes with it, as do I.
Wow- line 21 is so wrong! Putting it on line 21 (fraudulently) avoids subjecting the income to self-employment tax.
Verification could be rough.
So could an IRS audit … and penalties and interest on top of the 15.3% x $12000.
The colleges will request the verification materials. The schools will tell you what they need and want. They might want some documentation of the income (could be bank deposit records as well as your mother’s records). They might want records of rent and utility bills. They might want copies of last year’s taxes. There is no way to know until they ask.
The verification information requests will be issued by each college where you are selected for verification.
Did you do your FAFSA? If so, was there an asterick next to your EFC? I think that share it turns up? If so, based in your FAFSA information, you have been selected for verification. But do nothing until you hear from the colleges.
If you are honestly able to show that what you put in your forms is honest and accurate, you will be fine.
@thumper1, yeah with all of the documentations you listed, my mother can provide all of those. I don’t see an aterisk but it did say that HOH and married may conflict.
@madison85 What do you mean? I thought she’s already going to pay self-employment tax of over $2000?
@OHMomof2 Great!
If the taxes have already been filed, she can amend them with a 1040x. And is sure looks like she needs to do that . Truly, if you have a copy of the original one that the accountant did, you and your mom can use that as a basis for the changes that are necessary to correct everything. Then she can submit the amended version on her own.
If the taxes haven’t been filed yet, then don’t send the one the accountant completed. Make a new one that is correct and send that instead.
@happymomof1, wait how do I do that? With Turbotax or TaxACT? I already sent or uploaded the original to IDOC and mailed one copy to a college. What changes can she make? What’s the point now?
You will,have to show documentation that your father lived elsewhere for the required portion of the year for HOH to apply. If you have that documentation, that should not be an issue.
Your dad has no income at all? Will he be able to verify that…or did you leave your parents as separated on the FAFSA?