My daughter will be HS senior this 2017 autumn, and we will be filing FAFSA for first time. I understand that I will report my income based on my 2016 tax return, but does daughter also use 2016 for her income reporting? She had very little income in 2016. However, in 2017 she will have much bigger income ($10k+), because she has her first real job this year, and I realized capital gains when I cashed out most of her UTMA to buy her a car and some other large purchases for her.
Does the FAFSA ask for 2017 estimated income for me or daughter?
Also, does the CSS work the same way?
I’m wondering what it will mean if her freshman year finaid app is based on low 2016 income, but then the following year she has $10k more income? I can’t find it published anywhere what the 2017 student income exempt amount it, but based on the 2016 amount I’m estimating it will be about $6,600. Does anyone know for sure?
Thanks!
LJB
If your kiddo is ,starting college fall 2018, she will be completing the 2018-2019 fafsa which will use 2016 income tax return info. It should be available for completion and submission by October 1, 2017
The forms now use prior prior tax year…
The income exemption for students doesn’t always increase, but if it does it should still be about $6400-6600.
The CSS or an individual school can ask for both the 2016 income and 2017 income of both parent and child. The schools can do anything they want with the information. What will they do with the $10k increase in income? They’ll plug it into their formula. Each school can do anything they want with the information on the CSS. On the FAFSA, there is a place to put in the income for the year (2016 for this coming form, 2017 for the next) and the formula will increase the EFC for the student based on those numbers.
But really, there is no use worrying about it now. She’s earned what what she earned. You report what you have as income and assets.