Fafsa should i answer questions about my assets

Assuming they filed taxes jointly, this might require some math, so get a calculator! See if they can work with you to correct it. The most confusing part of the FAFSA might be the income section, since there are various questions about taxed and untaxed income. There are a few things you should keep in mind when filling out these FAFSA questions to help you get as much aid as possible for school. When it comes to reporting income, parents should never list their K plan.

Parents are not expected to use retirement money for college costs, and as parent age rises, your EFC decreases. As a general rule, you should only report assets that are cash-based i. Student assets, on the other hand, are weighed heavier.

That way, the amount that you report as your account balance will be smaller. We understand financial aid can be a beast to tackle! Students like you can sign up for free, enter your information once, and apply for thousands of scholarships. Sign up for your free Going Merry profile today , and start winning scholarships with the best scholarship website out there! Just answer 7 quick questions. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.

Find the Best Private Student Loans of Learn More. Was this article helpful? Share your feedback. Send feedback to the editorial team. Rate this Article. Thank You for your feedback! Something went wrong. Please try again later. Best Of. Student Loan Basics. More from. Information provided on Forbes Advisor is for educational purposes only.

Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities.

Performance information may have changed since the time of publication. Past performance is not indicative of future results. If you provided an email address, you'd receive an email letting you know that your information was successfully matched with the SSA, and you can begin using your FSA ID. When completing the FAFSA for the school year, students and their parents, if the student is considered dependent will submit information from their Tax return. Here's a handy chart from the Department of Education for more info:.

Reader question: My husband retired this year, causing our income to drop significantly. However, if your income has changed substantially during , you can call the school that your child plans to attend and let them know about your decrease in earnings.

Schools are sometimes able to adjust the data you supplied on your FAFSA if special circumstances apply, such as a job loss. You will probably be asked to submit additional documents for verification. Reader question : I was ready to submit the FAFSA and noticed that the filing status for my child is listed as married-filing joint return.

She is NOT married and didn't file any type of tax return. FAFSA will not allow me to change this. How can I make a correction? You should be able to make changes to any field in your FAFSA application except your Social Security number , either before or after you have clicked Submit.

Your correction should be processed in three to five days. I assume the difference would be considered income for the IRS and included on a A line 7. However, he was not required to file taxes. I would guess in the question 38, but that seems to be income from working.

We don't want to mess up and lose out on financial aid money. Your student is not required to report this amount on the FAFSA since he was not required to file a tax return. We have a 17 year-old who is going to college next year and a year old and we have some money saved in accounts for each of them. Do we report a total of two accounts of on the FAFSA, or only the portion that is dedicated for the 17 year-old? I am assuming any stocks are added to this line as well? What else should be added to this line?

I read that we do not add our K, the house we currently live in, cars, etc. You will need to report the total combined dollar amount contained in both plans for both of your children.

You are correct that stocks and other investments should be added to this line as well, including:. Do NOT include your current home, car, or k. Reader question : In , I received a fellowship for my graduate studies. I am confused about whether I should list the amount from line 7 of my form under taxable scholarship income.

I did report scholarship income to the IRS in , but it seems irrelevant for my financial status for the academic year since I received no scholarship in and will not receive any scholarship in If the taxable income from the fellowship appears on Line 7 of your , you must report that number, since the FAFSA is asking for information from that year. The custodial parent for federal student aid purposes is the parent with whom you lived the most during the past 12 months.

The twelve month period is the twelve month period ending on the FAFSA application date, not the previous calendar year.

Note that this is not necessarily the same as the parent who has legal custody. If you did not live with one parent more than the other, the parent who provided you with the most financial support during the past twelve months should fill out the FAFSA. This is probably the parent who claimed you as a dependent on their tax return. If you have not received any support from either parent during the past 12 months, use the most recent calendar year for which you received some support from a parent.

However, if the family doesn't qualify for the simplified needs test, a portion of their reportable assets will be sheltered by an asset protection allowance. This allowance is based on the age of the older parent. Any remaining assets are assessed according to a bracketed scale.

It is important to note that 14 states do not allow students to qualify for the simplified needs test or auto-zero EFC to skip the asset questions. An applicant who qualifies for the simplified needs test may still be required to report assets on the FAFSA if they live in a state involving asset information to determine eligibility for state grant programs.

The asset information will be used only to determine eligibility for state grant programs. The short answer to that question is yes. Savings account balances will impact your financial aid. Money held in a savings account is considered an asset. Student loans can be used to pay for room and board, which includes both on- and off-campus housing.

So the short answer is yes, students can use money from their loans to pay monthly rent for apartments and other forms of residence away from campus. Your new college will recalculate your financial aid eligibility based on the information on your FAFSA and other financial aid forms. Unless your situation has changed, you should get the same amount of federal aid that you received at your original college, as well as state aid if you stay in-state.

If the student is a dependent student, moving the money into a custodial plan account will cause it to be reported as a parent asset on the FAFSA. If either parent attended but did not graduate from college, then just click on high school, since that is the last level of school the parent completed.

It may also be beneficial to accelerate necessary expenses, so that the money is spent before the FAFSA is filed. For example, if the parents anticipate needing a new car, a new furnace or a new roof, spending the money sooner may increase eligibility for need-based financial aid.