On FAFSA, I put married for them. We can definitely prove that he lives in another country, but it’ll depend on what document specifically…
And yes, he has no income at all.
I wouldn’t recommend that anyone with such a limited understanding of taxes file their own return even with software. Even with software there’s complexity in how to answer the questions. JMO.
@annoyingdad, Alright. Tax returns are already sent so nothing can be done for this year. She’ll have to pay the self-employment taxes and she told me she’ll be able to earn some money through 1099/W-2 for next year’s returns.
It’s my fault that I hurried and sent the tax returns.
My apologies…normally SE income goes on Sch C, but line 21 is okay if you tell the software to hit it with SE tax.
Okay.I might use TaxACT for next year…but for now…I hope we’ll be okay with the verification process, we have all the documents that were listed here before (bank statements, rent etc). For example, my mom puts an amount in the bank every month and the landlord deducts the amount with the check she gives him.
This doesn’t affect my college application right? I worked hard on those.
I would recommend you go with what you have now just to get through the financial aid process. If you have parents listed as married on FAFSA and CSS but your mother as HOH on the taxes it will be a conflict at verification. I would be prepared to file a revised tax return (as advised above 1040x). The revised return will most likely net your mother some $$ due to the EITC which is refundable (you get it even if you pay no taxes).
The accountant didn’t do this (EITC) as mentioned above due to liability. However there are a number of groups that assist people in filing their taxes for free that can explain this to you.
VITA (Volunteer Income Tax Assistance) is one such group. The IRS has a list for Volunteer Income Tax Assistance by state. Google “low income tax assistance pennsylvania” and you will find a lot of options. I believe you are living on this income and I hope you can get assistance to reduce your taxes and increase the $$ in your pocket. The volunteers may even be able to assist in filing previous year’ taxes if there is any money/credits that you deserve.
Here is a link for information on filing amended returns. Good luck and come back here and let us know how you make out.
http://www.irs.gov/uac/Newsroom/Ten-Facts-on-Filing-an-Amended-Tax-Return
Okay so, do you mean that we should have someone else file another tax returns? Won’t be too late then? The money is due in March.
Which money is due in March? Do you mean the taxes your mother owes? If so perhaps filing an amended retuen now would make sense - then she probably will have to pay nothing.
Yeah, the taxes. Where does she go then? The accountant she went to before won’t change anything. And don’t I have to update the new tax returns on IDOC? Wouldn’t that be confusing?
And for VITA, I found a place 5 minutes to where I live.
Do a google search “low income tax assistance pennsylvania”
there are places in your state that will help you for free to do your taxes. You want to file an amended return.
Do I send/upload the amended tax returns?
If you file an amended return you can update the colleges later. Your income won’t change so it shouldn’t affect the financial aid you will receive in a large way.
Okay. My mom is now pissed at me for some reason and now she just wants to pay the money…because she thinks there’s no point at all.
How is it going to work if my mom cannot provide documentation for where she works? Or is that not needed? Will they help refile?
The volunteers will help you figure out how to file an amended return .An amended return has to be done on paper (not electronically). Your Mom can go ahead and pay if she would like - I understand her frustration. If/when you file an amended return she will likely get money back.
The point of filing an amended return is twofold:
- The tax return as Head of Household will conflict with the FAFSA and CSS saying your parents are married. If you are married you are not supposed to file as Head of Household. If verification is required(from the school) this conflict will have to be addressed.
- If you file an amended return you should be getting money back. Why not get some money that you are due?
When you go for free tax assistance you can also ask about filing amended returns for prior years that may also net you some $$. It would be a nice time to get some extra money for college.
Alright. How many years can prior years’ tax returns go back to? And also, what’s the difference between the tax return now and amended return? Changing the filing status? How can she get her money back if she has no proper documentation for her sources of income? Plus, do I send the amended returns to all my colleges as well, not just for documentation for FAFSA, right?
Are you just pointing out the inconsistency with fafsa/css or are you suggesting the mom file the amended return with a different tax filing status? I don’t want the OP to read that incorrectly. Because for tax filing there are circumstances where a married person can be “considered unmarried”, which the mom seems to fit, and file legitimately as HOH.
Yeah. @annoyingdad you’re right. How can we amend the taxes that she has to pay? Also, on the CSS, they didn’t ask for filing status I believe.
With this low of an income, she might do better filing as married, or it might not matter at all.
Well what can and should do when we go to that place next Sunday? (It starts on the 14th and my mom only has time on that Sunday or Monday) I’m confused…how can she get refunded with that tax?