fafsa,aid/grant? He files individual tax return for 2006 income in april 2007and will also file in 2008 for his current yr income.Would it be better if he dont make money? can we claim him if laterhe dont make money and we pay for his college?he is currently 15 and 3/4 yrs old.
2007-03-14 04:26:16 · 8 answers · asked by belashah6 1 in Education & Reference ➔ Financial Aid
Well, if he continues earning that level of income, it will definitely have an effect on your son's EFC (Expected Family Contribution) when he file his FAFSA down the road...
EFC's are made up of both a Parent Contribution and a Student Contribution. The amount of the EFC is calculated using a formula that gives different "weight" to the various resources that a family might use to finance an education: parent income, parent assets, student income, student assets. Of these 4 things, student income is "counted against" you the most. To be specific: 50% of the student's income will be counted towards the student's EFC. This could mean that, before your (parent) income is even factored in, your son would already be ineligible for the Pell Grant! (Because a $10,000 in student income would make his Student Contribution at least $5,000 and the cutoff EFC for Pell is $4,110.)
However, the only thing you can do to prevent his EFC from being this high is if he doesn't work, which would be too bad. Most people don't realize that, for financial aid purposes, it doesn't really matter if the student is claimed as a dependent on the parents' taxes. The IRs and the Department of Education have two different methods for determining dependency. When your family files the FAFSA, your son will still need to report those wages as his own REGARDLESS of whether he files taxes or not...
I would encourage you to do some small calculations of your own. Go to FinAid.org's EFC calculator to see what your EFC would be if you filed the FAFSA today. Run the calculations with and without your son's $10,000 income. If you discover that the numbers are going to be too high *either way,* you might decide that your son's better off earning his $10K. It might also help you convince him that he should save some of the money to pay for his future academic endeavors.
2007-03-14 08:20:31 · answer #1 · answered by FinAidGrrl 5 · 0⤊ 0⤋
Usually the only thing that would hurt him is a trust fund in his name. Having a savings account would be a detriment at this point but if you want him to save put it in something of yours like a 401 k or something. It benefits all in the long run. Always file your taxes, you are on the right track.
You can claim him as long as he is a dependent under 18 or in college full time till 24. Being a full time student is key to get any loans or grants. And he must keep up good grades to do keep getting these benefits.
You can also claim a retired parent if you are paying so much a month for the living expenses. But keep good records like a check or somethng. Just found that out myself. This parent has no income except for a small ssi check.
2007-03-14 04:32:11 · answer #2 · answered by knowitall 3 · 0⤊ 0⤋
in the previous, i have always spent it, yet I basically were given right into a sturdy problem the position I paid off all of my debt ($3,000) and that i now have some thousand kept. I actually have an finished equipment down- i'm getting $one hundred per week on my debit card (which I not often spend all of it), and each thing else is going into my savings account.
2016-12-01 23:59:22 · answer #3 · answered by ? 3 · 0⤊ 0⤋
You can claim him he is still under 24 years old and a full time student. Nobody lives on 10K a year not even an adult can. Check your 1040 booklet in the front or go to irs.gov and ask them the question to be sure.
2007-03-14 04:30:57 · answer #4 · answered by Tapestry6 7 · 0⤊ 0⤋
hmm if hes making his own money,than i think that would affcet him,i mean my brother did it,and he works,but i think he got finacial aid,but then again,im not sure,you should check the website out,or ask someone who has a similar status as you son
2007-03-14 04:31:13 · answer #5 · answered by suckerfree 2 · 0⤊ 0⤋
a child can use his/hers parents income for fafsa until the child is 23, married or as a child of their own. it doesn't matter if he has an income or not.
2007-03-14 04:30:19 · answer #6 · answered by Anonymous · 0⤊ 0⤋
he's still in the 10th grade, its ok if he spends money more than you want him to. you can't depend on him on money now, wait till he grow up a little bit more and let him enjoy his childhood and its ok if he spend money quickly, don't make him grounded and don't give him money, cuz this affect him when he grow up.
2007-03-14 04:30:34 · answer #7 · answered by nora s 2 · 0⤊ 1⤋
your better off w/ him not working, he will be eligible for more financial aide
2007-03-14 04:29:14 · answer #8 · answered by Anonymous · 0⤊ 1⤋