FAFSA question

[crazyforlatin]

I have a joint savings account with my mom who is the primary account holder (tax document is sent to her). Do I still need to disclose the amount of savings for FAFSA even though it’s not my money? I’m a joint account holder for helping her deal with bills etc.

[Sebastian (a lady)]

Whose names are on the 1099?

[crazyforlatin]

1099s (accounts in several banks) are under her name so she reports interest income on her tax returns. 
 

I haven’t started FAFSA yet because we wanted to figure out these accounts first. I’m assuming I need to input my social security number. And I don’t know how the schools/FAFSA look up accounts to verify the accuracy of the financial application. I don’t want to leave out money from joint accounts when they start verifying and find more money under my name than disclosed.  In reality a joint account owner whose name is not in 1099 can empty out the account.

[skimomma]

I don't know if it is the "right" answer but I am in the same situation and did not declare this.  I figured if I don't declare it on my taxes, then I don't on the FAFSA.  Our case is lower stakes since dd did not qualify for any need-based aid and we did not take the federal loans anyway.  We were still required to submit a FAFSA in order for her to get merit aid....for whatever reason.....

However, I might add that you may want to consider opening a POA account for your mom and keeping the bulk of the assets in that account.  This allows you (assuming you have a POA) to manage her bills without that cash being considered your asset.  The downside to this is that any money in a POA account gets frozen pending probate when the holder dies but it also protects that money from tax liability and from collection on your behalf (lawsuit, taxes, etc....).  Our situation is set up this way.  I do still hold an additional joint account with the person I care for but only keep the amount of money that person needs access to in it at any given time (less than $2K).  So even if I did list it on the FAFSA, it would have no real impact.

[crazyforlatin]

3 hours ago, skimomma said:

I don't know if it is the "right" answer but I am in the same situation and did not declare this.  I figured if I don't declare it on my taxes, then I don't on the FAFSA.  Our case is lower stakes since dd did not qualify for any need-based aid and we did not take the federal loans anyway.  We were still required to submit a FAFSA in order for her to get merit aid....for whatever reason.....

However, I might add that you may want to consider opening a POA account for your mom and keeping the bulk of the assets in that account.  This allows you (assuming you have a POA) to manage her bills without that cash being considered your asset.  The downside to this is that any money in a POA account gets frozen pending probate when the holder dies but it also protects that money from tax liability and from collection on your behalf (lawsuit, taxes, etc....).  Our situation is set up this way.  I do still hold an additional joint account with the person I care for but only keep the amount of money that person needs access to in it at any given time (less than $2K).  So even if I did list it on the FAFSA, it would have no real impact.

Right, I do have POA for one account but prefer not to do it this way, given your caveat. I’m going to leave a few joint accounts (my parents liked to have different banks) so that I can handle their finances. I’ve started to move money into an individual account and had them designate beneficiaries which avoids probate, hopefully from what I’ve read. 
 

When we went to the bank yesterday, the banker adamantly told us that it’s fine to have a joint account and not disclose to FAFSA if the 1099s are under the parents’ name. Apparently she went this route with her college kid and got aid. But we were there already and just set up an individual account with beneficiaries. 
 

Does anyone know how much money would impact FAFSA? I know zero is ideal, but I read somewhere, and I can’t find it now, that under a certain amount, it would not affect aid that much.