Great Information ‼️

@howtopayforcollege

7 ай бұрын

thanks!!!

We have a restaurant and I am finding it tricky to come up with a value for the business because we rent the space. Total assets are about $50k - would I need to take into account any $ in the corporate bank account or in marketable securities? Do I need to use the retained earnings listed on the Form-1120S as its net worth? That amount would be higher than my guess on what I would get if I were to sell it, since we don't own property. Would love to hear your thoughts!

@howtopayforcollege

6 ай бұрын

It's nuts trying to figure this out, right??? I'd suggest using your estimate of what you'd get if you sold it. Net of commissions, taxes, etc.

Just finished filling out the student and parent parts of the fafsa. We only saw a place to fill in assets in the student portion. Is that where all assets go? Seems odd since they use different rates for parent and student assets. I was expecting to see a section for assets in the parent portion. Did I just miss it? Or should all assets be declared in the student portion?

@howtopayforcollege

6 ай бұрын

Is it possible that you're below the income threshold for the simplified formula where you don't have to report assets? If so, then the parent asset questions don't appear. Income threshold is $60k.

Is a custodial savings bank account listed under student’s assets or parent’s assets ? If it’s considered student’s assets, should I move some of that money into his 529 in which parent is owner ?

@howtopayforcollege

6 ай бұрын

It's the student's so yes, moving it to the 529 would be beneficial for the FAFSA.

I have a question about the student assesst part. I do have money on my bank account so do I put the total amount of money I have in my bank account or no? Because im confused if I have to put that info in there only if I have a a business but I dont have that. I only have that money because I work

@howtopayforcollege

5 ай бұрын

Yes, you list your bank account balance in assets where it says checking, savings and cash. Business value is listed separately.

I currently have a HS senior and junior, and both have 529's. in theory, can I move all the money out of my HS senior's account and move it into my junior's before I file the FAFSA this year?

@howtopayforcollege

7 ай бұрын

Yes, although keep in mind that if you are applying to any schools that require the CSS Profile, you'll still need to report both 529s there.

If someone is a C-CORP owner, do they need to report the company's profit?

@howtopayforcollege

2 ай бұрын

Only if it flows through to your personal return (1040). Otherwise you only report the C Corp's value (your share of it) as an asset.

Im caring for my parents and have some of their money in my bank account. Do I have to list that dollar amount in my asset(checking & saving)?

@howtopayforcollege

4 ай бұрын

Technically yes-- you report the balance in the account on the day that you file. If it's a significant amount that will be spent soon/is already allocated, you might choose not to. Know that if you get pulled for verification, you could be required to produce statements in which case you'll need to explain it. So keep records of what you're reporting and why.

If I may, I've a question. For the 24-25 FAFSA I was wondering what I could do to avoid having my finaid decreased. For the 2022 year, I was claimed as a dependent by my older sibling (lived with them for over a year cuz covid things) and wanted to know if I could use THEIR tax info on the fafsa. If so, how would that work? If it helps, there was no legal stuff done to make them my legal guardian or anything, I was just living with them due to school and covid. Also, I'd like to use my siblings tax info because that year my parents sold some property and it was input on that years tax form. After reading some info, I've deduced that the selling of the property will decrease my finaid amount and increase my EFC amount. I wouldn't be able to afford school in that case. Is there any way I can use my siblings tax form? Thank you for the help!!

@howtopayforcollege

3 ай бұрын

If you are still your sibling's dependent (or were on their 2023 taxes), then you could use their info. Dependent means they're providing more than 50% of your financial support. If you are your parents' dependent, then consider appealing your financial aid on the basis of a one-time transaction (selling the property) that is not indicative of their ongoing financial circumstances.

@tacoman107

3 ай бұрын

@@howtopayforcollege I was their dependent for 22 and one other year. I don't remember which other year, but I will check for 23 as well. Do you happen to know how the appeal works? I will be talking with the financial aid office at my school, but they aren't always very useful for fafsa info, if at all. Would it even be a good idea to ask them these questions with the info I've provided? The last thing I want is to get wrong information from the school considering how stingy they can be. It's a UC, if that helps with understanding why help isn't always easy to get.

@howtopayforcollege

3 ай бұрын

@@tacoman107 You appeal through the financial aid office. They'll be able to tell you the specific steps to take. The main element of an appeal is, there is some info that they don't have which you can provide which could result in a higher aid award. Whose dependent you are, the nature of income you've (your parents/sibling whose dependent you are) received, etc. are You're right that UCs are pretty stingy. The other place you might want to look is the Cal Grant.

Question. We have rental and we owe 279,000 and according to zillow it is 382,000. So under assets for the property it would be 103,000? Right.

@howtopayforcollege

7 ай бұрын

You can also subtract current liabilities (coming year's expenses incl mortgage, property taxes, etc) and cost of sale.

@bwc2000

6 ай бұрын

@@howtopayforcollege can you clarify please? 300k property value - 200k mortgage loan = 100k. Then 100k - 5k property tax = 95k?

@howtopayforcollege

6 ай бұрын

@@bwc2000 $100k minus all liabilities for the year-- property taxes, mortgage payments, maintenance, and cost of sale (assuming realtor commission and taxes due).

Please explain the exemption to report assets section.

@howtopayforcollege

4 ай бұрын

If your income is

@johnlim6108

4 ай бұрын

@howtopayforcollege thank you. In that case, I am a self employed filling schedule c with AGI about 55k for a family of 6 and some interests and dividends, I have to list my assets? My kids might not get anything at all.

It caught my attention that 'It's not going to cost you a lot in the formula to have any of these assets.' in regards to 5.64% of parents assets not in a ROTH/401k etc. If we have $500k in CD's that we never touch for any reason... 5.64% of that money is $28.2k a year. So if we only owed that one line item, it would have us paying for 90-100% of college out of pocket. Is that how I calculate that??

@howtopayforcollege

7 ай бұрын

You are correct that a small percent of a large number is still a large number. If you have options to move this money into retirement accounts that would benefit you in the formula. Of course, how much you'd be able to move is a function of how many years you have until college since there are annual limits. Alternatively, look for colleges that offer merit scholarships instead of need-based if you have assets or other items that will disqualify you or limit your access to need-based aid.

@brianciofani4698

5 ай бұрын

@@howtopayforcollege Thanks for the response!!