Tuesday, May 11, 2010

If I am independant for tax purposes, do I need to report my parent's tax return for the FAFSA?

I am a 20 year old full-time student at a state school; I am planning to file my taxes independantly this year because I am living in my own apartment in a different state than my parents and I pay for over half of my own living expenses.





Do I still need to report my parent's tax return on the FAFSA? Will this affect my resident status at my school for tuition purposes?If I am independant for tax purposes, do I need to report my parent's tax return for the FAFSA?
Everyone that answered this question is wrong. Independent for tax purposes has NOTHING to do with independent for fin aid purposes. You are only independent for fin aid purposes if you are married, a mother, a veteran, a grad student, an orphan, or born before 1-1-1984. This is directly from the FAFSA official website.





Unless you meet one of the above conditions, you must include your parent's info on the FAFSA. Remember, this is a federal form, and it is very important to do this properly. I don't see how your residency would be affected if you personaly still live in the state the school is located in.





Good luck!!If I am independant for tax purposes, do I need to report my parent's tax return for the FAFSA?
Unless your parents have NOT claimed you in the past 2 years, you need their tax returns. In other words, technically you are not independant until you have filed independantly for 2 years. However, at 21 (or 24) you automatically get independant student status and more money. Once you have that, you don't need anything from your parents.
ILovee is correct, but also, FAFSA is also dependent on household income. So if you want to get financial aid and your parents are rich, your screwed.........that's why I couldn't get any aid and I also started filing separately because even though I paid my way, I still lived under their roof.
My understanding of the federal student loan program is that you cannot claim to be independent unless you are truly paying for everything and your parents are not claiming you on their own tax return. I believe FAFSA requires you to list your parents income even though may think you are independent.





In the past, the federal student loan program has been defrauded by some parents who put their student in a so-called ';independent'; status but then give the student money to pay for rent, bills, etc. under the table. FAFSA is closing that loophole by requiring you to list your parents income. Otherwise, the application will be denied.

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