<p>I have some unusual circumstances.</p>
<p>Since my parents divorced, my mother has been the custodial parent. Her annual income has been about $100k. This year, I am living on my own and supporting myself, but I do not meet the qualifications to file the FAFSA and CSS Profile as independent.</p>
<p>Until recently, my father's annual income was about $130k. However, my stepmom recently lost her job, bringing their income down to $56k. Therefore, my parents and I agreed that I would use my father's information on the FAFSA. Will this work to my benefit, even though their 2012 tax returns say that my dad made more? Will my stepmom's recent job loss make much of a difference? And does this mean that my mom can't claim me on her taxes this year?</p>
<p>Would it be better to use my mom's information? Will I get audited, since my mom claimed me in 2011? Please help!</p>
<p>You say you are living with neither parent. If you live with your parents equally (in your case zero for each), you are required to use the parent who provides most of your support. That is the parent who earns the higher income. This is for FAFSA. For the Profile, that same parent will be
the custodial parent and will complete the FAFSA. Then the other parent and spouse will complete the noncustodial parent profile.</p>
<p>Thumper is right.</p>
<p>However, if you try to use your dad and SM’s income, you’d be using their 2012 income. </p>
<p>The fact that your SM recently lost her job won’t mean much because it’s too recent. It’s not like she’s been out of work for awhile. There will be an assumption that she’ll find a new job - at least for awhile. Is she looking for another job? Did she get any severance money?</p>
<p>I don’t see any benefit to using your dad and SM’s info.</p>
<p>What schools are you applying to?</p>
<p>As you found out from the rules that define “independent student” tax law and college financial aid law have different definitions many time. It does not matter which parent declares you as a dependent on the tax forms or is named the custodial parent. FAFSA’s rules say that the custodial parent is the one you lived with the most, and if you lived or didn’t live with either equally, then you are supposed to use the one that makes the most money. Most kids in your situation find a good case to choose the parent with the lesser income. My understanding is that they do not immediately bestow that designation and that the benefits are not necessirly so great in doing this unless has gone on for a while. But do PM her and ask her what to expect as she has seen a lot of this. The thing is, the income from 2012 is what is used as the main component of the financial aid formula and the lower pay will be reflected in the following year awards, using 2013. Had your step mother lost her job in the middle of the year, 2012, maybe they would take into consideration they were living without her salary for 6 months that year so that those first 6 montsh have inflated the income when they were scrambling for the last six, but a recent job loss, not yet reflected, is a whole other story. In any case, it’s something you have to discuss on a case by case basis with each school and each fin aid officer may have a different take on it. It is information that you should let each financial aid office know so whatever adjustment they can make, they will if they so decide.</p>
<p>You do realize that most PROFILE schools want both parents’ financials?</p>
<p>CPT, according to the list most schools don’t require NPC info but there are still over 100 that do.</p>
<p><a href=“CSS Profile – CSS Profile | College Board”>CSS Profile – CSS Profile | College Board;
<p>FAFSA’s rules define the custodial parent as the one you live with most, and if neither parent fits that definition then you’d use the parent who provides you with the most support. Does your mother or your father give you money to pay for rent/food/transportation? Who gives more? It doesn’t have to do with their relative incomes unless neither parent is supporting you.</p>
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