Will this affect FA?

<p>Hi everyone,</p>

<p>I'm a rising senior and will be applying to colleges soon. My parents are divorced and both make less than 40k a year. I live with my mom and will be using her information as the custodial parent. </p>

<p>My concern comes from my dad who hasn't filed taxes since my parents divorced in 2003. He is COMPLETELY irresponsible with money and will not contribute anything to my college education. Many (almost all) of the schools I plan on applying to require information from the non-custodial parent, and I was wondering if him not filing taxes would affect my FA. I know when my sister was getting her FA set up at community college a few years ago she had problems with him because he didn't file taxes, but I really don't remember what they were. I believe she got it worked out in the end, but right now I have no way of getting in contact with her. I also saw on the NCP form that their is an option to indicate you will not be filing taxes, but I was thinking it might like suspicious if he has no tax information and we list a low income (like we're trying to get more FA than we deserve). </p>

<p>I am the first person in my family to apply to a 4 year university, so I really don't know very much about the FA process. I would just like to know what I should be expecting so that when March comes around I'm not getting screwed because my dad is negligent. </p>

<p>Thank you so much, and any help is greatly appreciated!</p>

<p>One other thing - my dad never paid child support until my mom prosecuted him in 2011. Now she receives nearly $800 a month because he is paying almost $170 in back pay for me and my siblings. Will there be a place somewhere to explain this to colleges? Although on paper it seems like my mom is receiving an extra $10k a year, the high payments will not last and most of this money has went to paying off 7 years worth of debt.</p>

<p>Since you do have this problem with your dad and tax returns, you have to prepare for the situation where those colleges won’t give you aid if they can’t get your dad’s info. You won’t get a waiver since your dad has been in your life and is paying child support.</p>

<p>Your dad earns too much to get away with “not going to file”. </p>

<p>your sister’s situation with a CC may not have been the same issue since CC’s only use FAFSA…which would only use your mom’s info…unless your parents were still married when she went to a CC. </p>

<p>Protect yourself and apply to a few schools that will either “meet need” with only your mom’s info…or will give you huge scholarships for stats.</p>

<p>You don’t want to be upset next Spring and find out that none of your schools will give aid without your dad’s info.</p>

<p>So will colleges not give any need-based FA, even if my mom fills out the FAFSA with her information and my dad fills out the NCP with his information and indicates he will not file taxes?</p>

<p>I wouldn’t say my dad is in my life by any means, and the only reason he “pays” CS is because my mom prosecuted him, won, and his wages are garnished. I can see how colleges wouldn’t really care about these details though. </p>

<p>What would you recommend I do if I hope to receive aid from colleges that aren’t in state? Beg my dad to file his taxes even though he might be audited by the IRS? </p>

<p>I should’ve known he would continually screw me over.</p>

<p>Okay, after reading up more on the NCP, I think I understand a little better. </p>

<p>Most of the colleges I want to apply to OOS require the NCP. Because of the situation with my dad I most likely won’t qualify for a waiver. What concerns me is that I won’t be considered for aid because the numbers I would provide on the NCP don’t have tax returns to match them. Will this be a problem? Should I call the individual schools to find out? Is the option on the NCP for not filing taxes just for people who don’t make enough to actually file? </p>

<p>Gah this is so confusing! My dad really doesn’t make very much money, and his circumstances would warrant his contribution to be on the lower side I assume. Would a good way to get an estimate of how much I have to pay be to put my mom’s info in a net price calc, and then my dads, and add the individual EFCs? I think if I had no other choice I would have a very serious conversation with my dad about filing his taxes this coming year, regardless of the consequences he might face for not doing it for so long (although my sister tried this and he still didn’t do it). It would be devastating to have to go to an in state school just because my dad is so careless to not file taxes.</p>

<p>I think you have to prepare for the situation where schools that require NCP info aren’t going to work out for you. </p>

<p>What schools are you interested in? What are your stats (GPA, ACT or SAT (include breakdown). What is your intended major/career?</p>

<p>We probably can suggest some schools that give great aid or merit that won’t require NCP info…like USC and Vanderbilt…and some others.</p>

<p>Would a good way to get an estimate of how much I have to pay be to put my mom’s info in a net price calc, and then my dads, and add the individual EFCs?</p>

<p>In your case, that won’t work because you’ll never find out how much you have to pay since the schools wouldn’t process your aid request.</p>

<p>I appreciate your help very much, but I’d really just like to focus on how I can successfully fill out the NCP and still be considered for aid, instead of thinking of other schools. </p>

<p>I’m going to do some more research on taxes and try and convince my dad that he should file for 2011, even though it’s already July. From what I read on the IRS website, there is no penalty for filing late if you do not owe any money, and that you are still eligible for a refund up to three years after the tax year. After the three years you are no longer eligible for a refund. </p>

<p>My dad didn’t file his taxes because he thought he would owe money, but because he is really just careless. After reviewing my mom’s income and her tax returns, I wouldn’t understand why my dad would owe taxes when he makes less than my mom and has no assets. Would anyone know if this explains why my dad has never been contacted by the IRS in the past 9 years of not filing?</p>

<p>

Taxes are a lot more complicated than that. People have different tax free allowances based on their individual circumstances. </p>

<p>Some very simplified examples would be (2012 figures):

  1. A single person who is claimed as a dependent on someone else’s taxes has a standard deduction of $5950, so their first $5950 of income is tax free
  2. A single person who is not claimed as a dependent on someone else’s taxes has a standard deduction of $5950 plus a personal exemption of $3800, so their first $9750 of income is tax free
  3. A single parent with dependent children may be considered head of household. Her standard deduction as head of household would be $8700 plus she would get the personal exemption of $3800 for herself plus she wold get a dependent exemption of $3800 for each dependent. So a head of household with 2 dependent would have the first $20,100 free of income tax. Additionally she might be eligible for certain tax credits. </p>

<p>Just from those examples, you can see that person 2 would pay a lot more taxes than person 3 even if they had identical incomes. And there are hundreds of other tax rules that could make a difference. Your dad may indeed owe taxes, or he may not. Bt you can’t assume he doesn’t just because he makes less than your Mom. </p>

<p>Whether he owes taxes or not, your Dad is required to file a return unless his income is actually so low that he is exempt - it is more likely than not that he is required to file. As to why the IRS has not contacted him - he has probably fallen through the cracks so far. Eventually it is likely they will catch up with him.</p>

<p>For most schools FA, the non filer form is for people who do not file taxes because they are not required to.</p>

<p>Another thing to consider is that the NCP schools will expect your father to contribute to your college education. Is he willing to do that? Because your mom did not receive child support until your dad was prosecuted, it sounds like this may be an issue.</p>

<p>It stinks, I know, but there are many others in the same boat with you. My daughter was in the exact same position last year. Look around and do some research. You will be able to find a great school that doesn’t require the non-custodial info, but you should look into the financial side of stuff BEFORE you visit or apply. Good luck with your search.</p>

<p>*I appreciate your help very much, but I’d really just like to focus on how I can successfully fill out the NCP and still be considered for aid, instead of thinking of other schools. *</p>

<p>I realize that. But YOU are not the one who fills out that info. Your dad has to fill out that info… He can’t just put that he earns $30k per year (or whatever) and doesn’t file his taxes. </p>

<p>Will your dad provide copies of his W-2s and fill out the paperwork? However, even if he does, that won’t be enough because tax returns reveal other sources of income…so that’s the huge problem. Copies of his tax returns will be req’d. Claiming that he’s not going to file won’t work because he clearly earns too much not to file. </p>

<p>Since he pays your mom $800 a month in child support, that means he must be earning at least 2-3 times that. Your dad would only be exempt from filing taxes if he earned less than about $6k per year. Obviously, he earns a lot more than that. </p>

<p>You may think that there’s some secret way to still have these schools provide FA, and everything will work out because it worked out for your sister. Your sister went to a CC. CC’s do not require NCP info. So, you may be mistaken about what the issue was. Perhaps your parents’ divorce was not final at that point or something. But, her aid issue wasn’t because of NCP paperwork. </p>

<p>You’re making a mistake not to also be identifying a few other schools that will be financially affordable without your dad’s info. That isn’t being financially responsible. </p>

<p>I realize that it’s upsetting that your dad and his situation are still negatively affecting your life. This is something that many children of divorce face. You need a strategy…apply to some of the schools that require NCP info and hope that maybe your dad will file his taxes next year and things will work out, but ALSO apply to some affordable schools that won’t need his info.</p>

<p>Hopefully some others who read this thread will chime in and explain further.</p>

<p>mom2collegekids,</p>

<p>I totally get what you’re saying. I’m not going to apply to schools that all require the NCP. I already have two in state schools on my list that will be free because of a state program I qualified for in 8th grade. I also plan on applying to Case Western, which does not require the NCP. </p>

<p>My dad makes roughly $27k a year after taxes. I can easily do the math – I’ve seen his paychecks. The problem would be solved if my dad filed his taxes, because then his info would be available for the NCP. Yes, he might then face problems with the IRS, but that is inevitable. </p>

<p>The reason he pays $800 a month in child support is because he is paying $170 in back pay per week for me and my 2 siblings, plus the $35 that he still has to pay for me since I’m the only child still qualifying for CS. </p>

<p>My sister had problems with her FA because she was living with my dad at the time, and he had no information to use for the FAFSA. So she then used my mom’s information even though she was not living with her to qualify for FA. The next year she asked my dad to file taxes so that she would receive more money but he didn’t. That was about 4 years ago. </p>

<p>My plan is to sit down with my dad and explain to him the consequences of not filing his taxes. Yes, I should look at schools that don’t require the NCP, but I’ve spent months researching the schools I want to appt to, just to make sure they would be good fits. I’m not going to throw those schools out the window so easily. If my dad says he won’t file his taxes, then I guess I don’t have a choice. But if he says he will I will definitely keep track of him do that I’m not wasting my time applying to schools that require the NCP.</p>

<p>@ctinct: while my dad will probably be expected to pay for part of my college, I know that he has no money to actually help out. I would rather use his information and cover his expected contribution in loans than not use his information and be limited to schools that don’t require the NCP.</p>

<p>" I would rather use his information and cover his expected contribution in loans than not use his information and be limited to schools that don’t require the NCP."</p>

<p>But who is going to co-sign those extra loans for you? Him? Your mom? On your own, you are limited to the maximum Stafford (plus Perkins if the college/university offers it) loan. If those loans are already part of your financial aid package, you won’t be able to borrow more money without a co-signer for a private loan.</p>

<p>Do run the Net Price Calculator at each website, and see what your packages might look like. Find out if the federal loans are included in the aid packages, or not. At most colleges and universities they are.</p>

<p>@happymomof1: I have run the net price calculator on all 11 universities I have on my list. The loan amounts have ranged from $0 at Indiana University, to $6500, the most, at Case Western. </p>

<p>These numbers were given with my moms information only, and do not include any merit scholarships. For the schools that have higher self-help amounts, I fully plan on applying for the merit scholarships.</p>

<p>I already have two in state schools on my list that will be free because of a state program I qualified for in 8th grade</p>

<p>free tuition? or free ride (free tuition, fees, room, board and books)? There’s a big difference. Free tuition doesn’t mean attending the school would be “free.” I doubt Indiana schools give a free ride based on something from the 8th grade. </p>

<p>I don’t think you get it. You can’t just “use his info”. NCP schools are not going to accept what YOU provide to be “his info”. They will insist on seeing tax returns because those will reveal what ELSE he may have. They aren’t going to just assume that he ONLY has income from his job.</p>

<p>For example…let’s say that your dad has the same job, but he has a lot of savings/investments (maybe from an inheritance) and maybe owns a home with lots of equity. Or maybe he has a second job. Then colleges are going to want to KNOW that. Tax returns will give insight about those things. </p>

<p>You seem to think that schools are going to allow you to say, “My dad earns this much and doesn’t have any other money or assets. Trust me.” Schools aren’t going accept that. </p>

<p>Imagine if your dad had two jobs and you only reported the income from the smaller job? That’s why your plan isn’t going to fly.</p>

<p>Your question was: Will this affect FA. Yet, when we tell you it will, you don’t seem to believe us.</p>

<p>I really don’t appreciate the way you’re treating me, as if I’m some stupid kid who doesn’t know anything. When I said “use his info” I meant use the info on his tax returns. I understand now that colleges will require verification – that’s why I said my plan is to sit down my dad and have him file his taxes so that we can fill out the NCP (which asks for his tax information), and also have the forms to back it up. </p>

<p>Also, Indiana DOES have a program for free tuition when you sign up in 7th or 8th grade. If I were to go to IU, I would qualify for free tuition with their merit scholarship, based on my GPA and test scores. Because I also qualify for this program, both the merit scholarship from IU and the grant money from the state and federal government will render the cost of attending to be $0. The same can be said for Purdue. And trust me, I know what I’m talking about, so no need for your skepticism.</p>

<p>I had no skepticism about “free tuition”. I questioned whether attending would be free…and as you’ve now given more info, clearly it wouldn’t be “free” to attend those schools. You’d still have to pay for school fees, course fees, room, board, books, etc…which could add up to $15k or more for free…which isn’t free.</p>

<p>As for having your dad fill out his taxes, are you going to have him do that now for the past year? Or are you going to wait til next year and then have him file? And, what’s going to happen if he owes money to the feds? Do you think if he fills a tax return out and it indicates that he owes thousands for the current year (and likely past years), do you think he still going to submit it?</p>

<p>You are incredibly rude. </p>

<p>Because I have both the merit scholarship and the money from the state and federal government, combined they work to cover both tuition, R&B, and other expenses. I’ve even talked to both my HS counselor and a FA officer at IU about this. So please quit acting like you know everything. </p>

<p>And if my dad does happen to owe money after filing his taxes, we’ll cross that bridge when it comes. The whole purpose of this thread was to ask if him not having a tax return would affect the NCP, and then my FA. The answer is yes. You immediately started telling me to look up schools that don’t require the NCP, when I clearly stated I wanted to focus on getting my dad to file his taxes so I could still fill out the forms and receive FA. Sorry if you’re offended I didn’t listen to you about looking at other schools, but let me make this clear since it seems like you’re having trouble understanding things: I plan on applying to NCP schools if my dad agrees to filing his taxes.</p>

<p>Since the OP apparently knows everything I’m not sure what the point of this thread is any more. </p>

<p>OP, Mom2collegekids is one of the most knowledgeable posters here. You would well to listen to her and stop being rude. You will go farther in life if you are not rude to people who are trying to help. </p>

<p>You would do well to heed her advice about schools that do not require NCP info. You need a backup plan in case your father refuses to file. Not only does he have to file 2011 but 2012 - 2014 as well. Can you count on that?</p>

<p>Oh my god you people. </p>

<p>I already have three schools as back up plans. IU, Purdue, Case Western. I am open to finding more once I talk with my dad this evening. If not filing taxes for 2012-2014 jeopardizes hundreds of thousands of dollars in aid, then I would make sure that my dad files his taxes. </p>

<p>This thread really is pointless now. I could care less if mom2collegekids is a knowledgable poster – she has been very rude on this thread. All I wanted to know has been answered, so thanks for the help. I’ll figure the rest out on my own.</p>