FAFSFA Question

flippy1234

Assuming shared 50/50 custody w/ two kids (each parent claims one on the tax return). Who's income needs to be used for FAFSFA? The one who claimed that particular kid that year on their tax return? Or the family that makes more money? 

SD #1 starts college this fall, we weren't married last year, so this year she just used her dads income on her fafsfa, but next year it will make a big difference, if she uses our families income she won't get state aid (I make too much) vs. if she uses her moms family income. 

 SD #2 will start college in two years, so who knows what we will do then.

Thanks! 

Rhenna

If your family claimed her as a dependent then they will want your tax return information.  I haven't looked at the form in a while but I believe in reality they want both parents incomes stated but since you are split up and only one files each year you can "get away" with only showing one parents income.  Getting to claim her as a dependent but trying to use the other parents income to get aid is kind of like having your cake and eating it too.  That money is there for needy families and if she has a family supporting her that isn't considered to be financially in need it isn't right for her to get those funds.

Edit:  The only thing I can think of is that you could in the future have YH file married but separately from you since technically it isn't your child.  Because if you are filing jointly they will just be looking at the numbers in your tax return, they don't care whose child it is, just that she is being claimed and what your tax return shows as being made by the ones claiming her.

Hopeforthebest

Rhenna:

If your family claimed her as a dependent then they will want your tax return information.  I haven't looked at the form in a while but I believe in reality they want both parents incomes stated but since you are split up and only one files each year you can "get away" with only showing one parents income.  Getting to claim her as a dependent but trying to use the other parents income to get aid is kind of like having your cake and eating it too.  That money is there for needy families and if she has a family supporting her that isn't considered to be financially in need it isn't right for her to get those funds.

Edit:  The only thing I can think of is that you could in the future have YH file married but separately from you since technically it isn't your child.  Because if you are filing jointly they will just be looking at the numbers in your tax return, they don't care whose child it is, just that she is being claimed and what your tax return shows as being made by the ones claiming her.

There are fewer tax benefits with this filing status...possible penalties you may have to pay, especially if you own your home. These penalties could decrease your income tax or refund. Just FYI

karatechrissy

When I filLed mine out 8 yrs ago they needed both my parents info. My mon had sole legal and physical custody of me since I was 3 and my dad never paid a dime over the required CS. He lived in a different state than me and I still had to provide. Oth parents information. Because of my dads salary I didn't qualify for help. Even though he wasn't paying for anything, and my mom was too poor to contribute anything. I paid my own way through college but I'll always hold a grudge against the FAFSFA system bc of the way I struggled. It wa terrible. I really think it unfair. However, they didn't take my dad's spouses income into consideration at all. Just my mom and dad. Idk if they have changed since then but that's how it was 8 yrs ago. 

Edit: my mom was the only one who ever claimed us on taxes. Ever. I still wa required to give both parents info.  

hterry85

I know DH always needed tax returns from both parents, even though his dad was married (and his SM worked) and his dad had full custody when he was a kid.

Ginlyn0

Here is the correct info right from the horse's mouth so to speak:

https://www.fafsa.ed.gov/fotw1213/help/ffdef07.htm

Ooglybear

"If your parents are separated or divorced, the custodial parent is responsible for filling out the Free Application for Federal Student Aid (FAFSA). 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.)

...

Please note that the discussion given above applies even if the parents each have equal 50% custody. The term "custodial parent" is not synonymous with custody. Usually the parent with whom the student lived the most during the past 12 months is sufficient, since there are an odd number of days in the year. However, in some cases a tie-breaker is needed, such as when the divorce was recent or when there are an even number of days in the year (e.g., a leap year). In such circumstances it is based on whichever parent provided more support."

 

https://www.finaid.org/questions/divorce.phtml

flippy1234

Interesting.. just seems weird that since both kids are 50/50 and supported equally by both families one would get aid and one wouldn't. THAT doesn't seem fair. Since we claim SD#1 and BM/step-dad claims SD#2. 

 And.. they don't have to list both parents income, its whoever they live with, they have to list that parent and step-parent. 

VAGrrrl

I'm a custodial stepmom and we just went thru this with my stepson, who graduated from HS today. He lives with me and his father 100% of the time. My husband has been out of work several times during our 4 year marriage due to the economy and the industry he was in (home building/construction related). I have a very high income and have provided almost 100% of the financial support (BM doesn't pay child support). The FAFSA form is pretty clear that they go by the household income of the parent with whom the child lives. Even though BM has been unemployed due to drugs and stints in jail, and my husband has been laid off several times and has made very little money, my SS will not receive any financial aid because I make too much money.

 If it truly is a 50/50 split of custody with the child spending exactly equal time in each household, you'll probably have to speak with someone from FAFSA to determine which household income to use. If neither parent has remarried, I'm sure that makes it easier. In our case, though, there's no getting around using our household for the basis of the aid.