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Hi and welcome to Just Answer!Sorry for your situation...The issue is that FAFSA determination is only partially based on the information from your tax return.There are other information you need to enter which is not from your tax return - for instance - if you receive income that is not taxable. Also you need to report your assets.In additional - you provide your financial information and separately financial information for your daughter - means - her income - taxable and nontaxable and her assets.
If she did not file her tax return and was not required to file - she should check the box "I'm not going to file" on FAFSA application form, line 32 - see page 4 - http://www.fafsa.ed.gov/fotw1112/pdf/PdfFafsa11-12.pdf . If she file online - there should be a corresponding item.
Please be aware that when you entered information about your financial situation - that information should be based on the date FAFSA application is submitted. Thus if you file FAFSA today - you need to report all assets you own today.Please see for reference - page 12 - http://www.ifap.ed.gov/sfahandbooks/attachments/0102AVGCh2appquestions.pdf .An asset is defined as property that is owned by the family and has an exchange value.So - if you are a legal owner of the asset - it should be reported
Eligibility for financial aid is based on so-called "expected family contribution" (EFC). An EFC is a measure of how much money you will be able to contribute toward your daughter's educational expenses. The US Department of Education calculates your official EFC after the Free Application for Federal Student Aid (FAFSA) is submitted.However - before submitting the application - you may verify how certain items could affect your EFC - for that you may simply use an online calculator.For instance - http://www.aie.org/managing-your-money/finance-tools/efc_calculator/You will use the same information as for FAFSA.
thank you for responding so quickly. Do I have to put life insurance proceeds as an asset? I can't lose that money.
Yes - the life insurance due to you is your asset.
Thank you, XXXXX XXXXX it, & was aware of several things you advised, but since this past year changed our finances so much, I was worried. Turns out that I qualified as a "dislocated worker". & didn't have to put financial info in. Hopefully it will work out, I appreciate you so much!