A Question about Reporting Assets on FAFSA:

[northcoast]

My name is on the savings account of our minor, dd.  Do I need to report that when filling out the FAFSA?  We are filling out the FAFSA for ds for next fall.  Also, do I report based on a statement date like September 30 or the day I send the FAFSA?  Thanks!

[Julie of KY]

Who is the primary owner of the account? Who would have to pay any taxes? If you are a joint owner, then I would think you have to report. If you are just a guardian with access to the account then NO.

 

[JanetC]

The question is: who's been paying the taxes on the interest?

 

If it is a significant asset and you are a joint owner, it benefits you to declare the account as a parent asset rather than a student asset.

 

Student assets over the allowance are assessed more heavily than parent assets in the financial aid formulas.

Edited October 14, 2016 by JanetC

[MerryAtHope]

I report as of the day I file the FAFSA, and agree that the kids' accounts depend on who is paying the taxes on them. 

[angela in ohio]

Are you talking about the student whose FAFSA you are completing or another child? If it's another child, and it's their money, I don't report it. It isn't money available for tuition; my name is only on it because the child is a minor. If it's the student on the FAFSA, consider what a pp said about the student's assets being factored in more heavily. :D

[northcoast]

I report as of the day I file the FAFSA, and agree that the kids' accounts depend on who is paying the taxes on them. 

 

Thanks, that is helpful!  I guess I need to get this thing finished before next payday when the checking account is almost empty.  :)

 

I am talking about another child with a passbook savings account.  The interest isn't enough to report for taxes.  

 

Thanks all for the helpful answers!

[MerryAtHope]

Thanks, that is helpful!  I guess I need to get this thing finished before next payday when the checking account is almost empty.   :)

 

I am talking about another child with a passbook savings account.  The interest isn't enough to report for taxes.  

 

Thanks all for the helpful answers!

Yeah, I timed it after bills and paid a few things ahead from savings. 

 

I would think that if you are not including the interest in your interest earnings on your taxes, then it's the child's income--not yours. Don't report it at all if it's not yours and not the student for whom you are doing the FAFSA.

[katilac]

I guess I need to get this thing finished before next payday when the checking account is almost empty.   :)

 

 

The variance of money in your checking account from one paycheck to the next will not matter for FASFA, you don't have to worry about that. 

[Granny_Weatherwax]

The variance of money in your checking account from one paycheck to the next will not matter for FASFA, you don't have to worry about that. 

Exactly, they're not looking to see if people have $700 vs $3000 in the checking account. They want accurate reporting of tens of thousands in checking, savings, or investments.

[MerryAtHope]

It depends on the financial situation, but if a student might qualify for a Pell Grant and the parents have assets beyond the protected allowance, it can make a difference (probably in the range of about $26 for every thousand the parent has over the allowance, though it can depend, and $200 for every thousand the student has--no protected allowance). It can be worth looking at the EFC formula worksheets and tables.

Edited July 26, 2017 by MerryAtHope