So there has been a recent setback in our family, and I am afraid that my financial aid files (FAFSA, CSS, and so forth) will not line up due to certain things. Our apartment burned down, and I put on a scholarship application (that I am now a finalist of- yay Questbridge) that we used to clean our neighbor’s apartments on the side for check and cash. In other words it wasn’t a business, or any cleaning service, it was something we did to earn extra cash on the side. I wrote it as a essay topic that turned out to show me really well, and mentioned it under work experience. But now with the fire that is all gone obviously, so is the untaxed income now 0 on the CSS, FAFSA, and other forms? We will be basically homeless for 4 months.
To give any background info, my salary bracket is 20,000.
There is a space on the CSS profile for additional explanation, or you can just write a letter. It sounds like you should explain your homeless situation and the impact of the fire on your family’s assets and income.
It is most definitely taxable income that is also subject to self-employment tax which you and or your parents have chosen to underreport on tax returns.
In addition your family may have received excess federal benefits (welfare, earned income credit) to which you were not entitled.
So you wrote a scholarship essay about cheating on your taxes? Oh my goodness!
I think you have bigger issues.
Why should schools and the government give financial aid to tax cheats who are not paying their fair share?
Wait…I didn’t think the OP omitted this income on her taxes…I thought she wanted to explain why she no longer HAD this extra income. And anyway…the 2015 taxes haven’t been filed yet. The OP needs to include this extra income for 2015 on her taxes…and yes…pay self employment taxes.
The income on your taxes is the actual amount you DID earn in 2015. It’s not $0.
I was giving the OP the benefit of the doubt to assume they were filing taxes correctly with this income as appropriate. But that is an assumption on my part.
An adult who was familiar with tax law would say it that way. I was not sure the student meant it that way, although I am aware that it COULD mean that. A teenager might just mean in addition to a regular job.
If the gross income is 20k, is OP saying all that came from apt cleaning, no taxes were filed? Or truly “on the side,” as in a little extra toward groceries?
OP needs to go back to the finaid app requirements for his colleges. They’ll ask for a copy of the tax return or a solid explanation if there isn’t one (if they allow that.)
One is making sure that the colleges understand that you have had a disruption in your family income stream due to the fire, and possibly have fewer assets (losing stuff in the fire?) and are undergoing a period of homelessness.
The second is to make sure your mom reports that “on the side” income for 2015 when she does file her tax return. She should be reporting it, even if it is paid in cash or checks. It doesn’t sound like it is a lot, and doesn’t sound like she will be getting much/any more now in 2015.
thank you so much intparent! I apologize for any misunderstandings. Also, we don’t get any benefits at all, we don’t get any food stamps, welfare, or reduced lunch, OR any special breaks on our taxes. We’re not trying to “game” the system, this was just a misunderstanding, so my apologies everyone.
@Madison85. You must be a tax lawyer considering how you feel about ppl giving tax advice and specifying untaxed vs not taxable, etc.
With such a low income, that $ was not likely to add anything to their fed tax bill anyway. And again, at that level, the EIC would likely refund any FICA. This is just a kid, give them a break.
Tell the school/ab you had a fire and lost your home and xx in cash…they can tell you what to do next. Good luck.