I already filed FAFSA this year, with the new changes. For the last FAFSA, I put “will not file taxes” for 2015. This year, it also required 2015, and again I put “will not file”… But what happens if I got selected for verify, and it turns how I HAD to file in 2015 but didn’t? Will I still get financial aid, will I be in trouble? How would I go about to file tax return for 2015??? I didn’t know, please help and answer…
I was not verified for last FAFSA? Also I am very poor student and do not work, for additional info… please answer?
Let’s cut to the chase: were you required to file a tax return for 2015? If you are very poor and you had no employment income in 2015, I find it hard to believe that the answer to that question would be “yes.” If the answer is “no,” what are you worrying about?
im worried because even thought i was not employed in 2015 (full time student, no work), i still received financial aid (pell grant/calgrant). so im worried that i have to file a tax return regardless since i did receive financial aid. but i didn’t file … so that’s what i am concerned about, if I get verified for this year’s FAFSA (for 2017-2018). I hope you understand what I just said, and can you please respond with appropriate answer, thank you…
Pell grants and Cal grants are not taxable income (and therefore you are not required to report them on a tax return) unless the amount received in any tax year exceeds your qualified education expenses. For this purpose, qualified education expenses are tuition, required fess, and books, supplies and other materials that are required for your courses.
Well, after I got received financial aid, there were amounts leftover (after deductions for tutition and the like) that were mailed to me… what now? Does this change your original answer?
If so, what do I do now? if i get selected for verify, will I be in trouble, financial aid sent back, no more? very concerned…
In 2015, what was the total of your tuition charges, required fees, and books, equipment and supplies required for your courses? Assuming you were going to school in both the spring and fall of 2015, and up the amount from both semesters.
For both of those semesters in 2015, what was the total amount you received in Pell grants and Cal grants?
What is you tax filing status? Did someone else claim you as a dependent on their 2015 federal tax return?
off the top of my head, total amount received financial aid would be about 12000, about half and half for pell/cal… tutition fees is about 7000. as for books, equipment, and supplies, that varies and I can’t remember off top of my head. but books i know are quite expensive in itself.
as for my tax filing status, do you mean my marital status? then im single… as for the other, i think i am dependent on mom’s tax return. i was born after this date (was it 1993?) .
well? what is the verdict? and if it’s not good , what do I do now???
financial aid 12800, pell grant 5775, cal 7025, tutition 6982, books other materials varies like i said, though books cost adds up… and yes i was claimed as dependent.
And you should have received a 1098 T from your school for 2015…or you can access it online.
You have included the FULL amounts of aid for the full year in your posts here. Remember, 2015 would only include the fall semester. You wouldn’t receive the full Pell before December 31.
2015 Pell grant + Cal grant exceeds 2015 qualified education expenses by $5,006.
If you had no earned income in 2015 and you were claimed as a dependent on your mother’s 2015 federal tax return, you probably have a 2015 standard deduction of $1,050. Assuming you had no other sources of income (interest, dividends, capitol gains, etc.), this means you would be taxed on $3,956 for federal tax purposes.
If all of this is correct, it appears to me that you should have filed a federal tax return in 2015, and you owe about $396 in federal taxes. But you shouldn’t take it from me, or any other anonymous person on the internet. Talk to your mother, and if necessary talk to a tax professional. Form 8615 (the “kiddie tax”) may also come into play, and may increase the amount owed, depending on your mother’s tax situation.
Talk to your mother, and if necessary talk to a tax professional.
If you in fact should have filed a federal tax return for 2015 and if you do indeed owe federal taxes for 2015, you need to do those things. It doesn’t matter that you’re late (although there will probably be a penalty assessed and interest due); if there is a filing requirement and tax owed, you are legally responsible for doing these things. FAFSA verification has nothing to do with the requirement to file a return and pay any taxes owed.
Talk to your mother, and if necessary talk to a tax professional.
I agree with the others that you need “real” numbers for 2015. Make sure you are counting only the aid you received for semesters in 2015, as well as tuition and book amounts you paid in 2015.
If you are selected for verification for 2017-2018, and if it is discovered that you didn’t file taxes and should have, the school will have to also look at 2016-2017 again (because it is now what is considered conflicting information for 2016-2017). Figure out if you should have filed for 2015 - if so, file. If you discover that you didn’t need to file, you’ll be able to rest easy.
@Madison85, is this correct? Isn’t the standard deduction for a dependent for 2015 $6,300? Isn’t taxable scholarship income considered “earned income” for purpose of determining standard deduction and “unearned income” for purpose of figuring kiddie tax?
Good call, mommdc. I forgot that for the purpose of figuring the standard deduction, earned income inlcudes taxable grants, which isn’t the case when figuring the kiddie tax. So, if OP had no reportable taxable income in 2015 other than the $5,006 of Pell and Cal grant money that exceeded qualified education expenses, that would all be covered by the standard deduction and there would be no tax due and no requirement to file a tax return. My previous advice of checking with a tax professional still applies, however.
Well on a tangent, i have decided to study to become an accountant, hopefully specializing in taxation… just so in the future i can do my own taxes , haha . right now i’m clueless very clueless about taxes, but maybe in a few years i can be an expert , and perhaps be my own “tax professional”.
Well, thanks for your answer. I appreciate cutting to the chase and being harsh when necessary. I needed a reality check… we shall see what happens if I get verified, and I’ll come back here maybe to further ask… Though I will go see the school financial aid office also for further inquires.