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NOW is a very good time to get a copy of FAFSA and your last tax return, fill in the info and run it through an on line calculator. THere is one on this site. That will give you some idea where you stand, and what items stand out. With an income of $50k, you are right on the verge of having your assets not count if you are eligible to file a 1040EZ or 1040a, for instance. If you have money in your kid's name, he should spend it down, since his money counts more than your. Just some examples of what you can find out and fix, if you do a dry run early.
Basically, you need to file FAFSA. It does not become available for actual filing until the Jan 1 of your son's senior year, and deadlines can be tight for it. You have to estimate if you are not done with your taxes, and correct when you actually file your returns. Most people use the prior year's returns, adjusting for what they know has changed, using estimates on some of the changes. You can do it by mail, but it goes through much quicker on-line. FAFSA is a govt form that calculates your Expected Family Contribution (EFC) which is the number used by the federal and state govts for eligibility for govt grants, loans and work study. It does not mean that the amount is all you have to pay, unfortunately, because most schools do not provide 100% of aid.
For health insurance purposes, once your son reaches a certain aid, he is usually kicked off parents' insurance UNLESS he is a full time student. The insurance company will send an inquiry about this. Most colleges require proof of health insurance for their students and if you don't have adequate insurance, they will make you buy it from them.
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