<p>I just checked my e-mail and it said my Transaction 05 has been processed, but I never corrected 04. Apparently, the Financial Aid Administrator at my school just decided to log on to my FAFSA and correct it himself, which is what the email said. And my EFC increased by 3,000 dollars! That's **<strong><em>!! Does he have any right to change my information without consulting me beforehand of the changes and using my Parents' electronic signatures without their knowledge. I didn't even know my school had a FAA. And where the hell did he get copies of my taxes from to change the info? This is *</em></strong>ing *****!</p>
<p>I doubt that he has the ability to do that.</p>
<p>How did he obtain your and your parents' PIN numbers?</p>
<p>I have NO idea. This is the huge number he changed: for parents' 2005 U.S. income taxes paid. Can anyone tell me what line on the 2005 taxes you looked at for the income taxes paid question. Either I am right or the guy who corrected mine is.</p>
<p>Yeah-- the school can change the data points on your SAR to match your tax returns.</p>
<p>Income taxes paid is an expense question. The higher amount you paid, the greater the expense that's deducted from your total income. So if you overstate the taxes you paid, it will result in an EFC that's lower than it should be.</p>
<p>But it would have to be a pretty large discrepancy to result in a 3K change in EFC. Probably some other numbers changed, as well.</p>
<p>Yes, the college financial aid people can and do make corrections. I don't know if it affects any FAFSA other than for their school -- that is, if transaction #04 goes to 6 schools, including Somewhere U., and the financial aid dept. at Somewhere U. goes in and makes a correction... then I'd think transaction #05 will list only Somewhere U. (But I might be wrong about that, you'd want to check the SAR).</p>
<p>As to where they got the tax returns-- are you sure your parents didn't send a copy? A lot of college financial aid departments ask for copy of the tax returns, so your parents may have mailed them off -- perhaps without mentioning it to you. </p>
<p>A change in the amount of taxes paid will make a big change in EFC. I know because I thought I would owe about $3500 in taxes - so that's what I put down -- but my CPA is great and I owed -0-. So when I corrected the FAFSA with my figures, which showed lower-then-estimated income but no taxes -- the EFC went up by about $2000. I guess they figure that whatever you don't pay in taxes ought to go straight to the school.... who knows?</p>
<p>What is even worse in the FAFSA correction-by-school part is this: my son's college would come in and change the business valuation. I'm a self-employed freelancer -- meaning my business is "me". I work from home, I have no employees, I have a computer & printer and that's about all that is "business". I won't work for anyone who doesn't pay me quickly, so I don't have any receivables. So I state the value of my business as what I think I would get if I sold my equipment on ebay. However, the college thinks the value of my business is whatever I netted from it last year. So if I make $40K, the FAFSA is amended to show a +$40K asset. Isn't self-employment nifty? Anyway, the folks at my son's college insisted that the FAFSA rules required that it be done that way, but I don't know if its true -- I sure am not going to type in that figure. </p>
<p>Moral: just give up on the idea that the FAFSA is fair or has any bearing on reality -- its just a very arbitrary system for determining how aid dollars are allocated, just as the tax system itself is arbitrary.</p>
<p>Undoubtedly , your parents must have sent in the tax form ( W-2 's , maybe a verification form filled out and signed by them ) . Perhaps the tax form showed a contribution to the IRA or 401K . Perhaps it showed large dividends /interests from savings ?? Or capital gains from the sale of a property ?</p>
<p>The schools folks insist FAFSA rules state they must revalue your business' net worth -- sound like a crock to me. I've never heard of that rule. My response would be "show me the rule".</p>
<p>There is absolutely no way that the school, nor the federal government can evalaute the worth of your business. This is definitely wool over the eyes.</p>
<p>I have had finaid counslor's add back business deductions- like depreciation, etc., to the business income, but no one tried to change the value of my business, which is like yours CalMom, nothing to sell be me and my work ;)</p>
<p>Thanks for all the info guys. But one important question: for "U.S. income taxes paid, what line did you write down. The guy who corrected mine looked at line 57. But doesn't self-employement tax count as taxes paid. Wouldn't it be line 63, the "total tax"?</p>
<p>No, SE taxes do not count. SE taxes are the equivalent of SS taxes for non-self-employed. SS taxes are not deducted for their case either.</p>
<p>Line 57 is the correct line.</p>
<p>If you filed the Profile, did any of your schools require forms be sent to IDOC? If so, the schools would have your parents and your tax information.</p>
<p>hey the same thing happened to me!</p>