Untaxed Company Benefits

Challenged · 07-03-2011, 05:45 AM

What role do they have on FAFSA and how much can it affect EFC?

thumper1 · 07-03-2011, 07:56 AM

What are you talking about? If you are talking about company paid insurance, or something similar....it's not on the FAFSA at all.

Challenged · 07-03-2011, 09:06 AM

It's much more than that. The home we live in, the car we drive, the school we go to. Just that could be valued at more than 200k a year.

momofthreeboys · 07-03-2011, 09:26 AM

Some untaxed income is reported the FAFSA, you will need to read the guidelines carefully to figure out what is reported and not reported. An example would be military housing and food allowances, inheritances, insurance payouts, etc.

mom2collegekids · 07-03-2011, 09:27 AM

Are you saying that your company is paying for your home, your car, and your school?

Challenged · 07-03-2011, 09:52 AM

Yes, the corporation provides a lot of perks just beyond income. I'm guessing I wouldn't qualify even without adding in these perks, but such perks would kill any such chance. Thanks anyhow.

momofthreeboys · 07-03-2011, 10:03 AM

Most people can whiz through the FAFSA without having to have the line by line instructions nearby, in your case you and your parents will need to carefully read. There is not much "free" federal aid unless you are very low income so there isn't probably much on the line, but it could impact any financial aid from the college so it's worth being correct and if you apply to any Profile colleges it will be important to also be correct with those forms.

mom2collegekids · 07-03-2011, 10:07 AM

I'm guessing I wouldn't qualify even without adding in these perks,

If your parents have the kind of jobs that provide those perks, then likely their income is too high anyway...so this may all be for naught.

And...frankly, if the company is providing all these perks, then your family can likely pay for college by using the money that EVERYBODY else uses to pay for homes and cars, etc.

Challenged · 07-03-2011, 10:17 AM

Yep, I understand that. They are willing to pay but they want me to do all the research can in finding both merit aid. I was just checking what effect this would have on the situation. With retirement, two pairs of unstable grandparents, and two kids on the line for college even the most financially stable situation can take a bad turn. Not to mention the instability of startups.

Thanks!

mom2collegekids · 07-03-2011, 10:29 AM

Yep, I understand that. They are willing to pay but they want me to do all the research can in finding both merit aid.

If you're looking for merit aid, then you don't need to really worry about the issues in this thread. Most merit aid doesn't even ask for FAFSA.

My kids have nearly free-rides ...and we've never filled out FAFSA.

What are your stats? What is your major?

Challenged · 07-03-2011, 10:34 AM

My stats are decent. Decent GPA and a 1480 on the SAT, first time. I don't think that's free-ride material though. I'll be taking the SAT again in October and am hoping for a 1600/2300 (I've been getting 800s inconsistently, vacillating in the 750-800 range, on all the practice tests henceforth).

I got a 30 on my ACT but I really don't think that's the proper reflection of my ability because I was distracted (only did well on math with a 36) and scored about 5-10 points lower on the other sections than I usually did on the practice tests. I find the SAT easier so I'll just be taking that again, because I'm hopeful for a good score.

Oh and congratulations to you and your kids--it really is wonderful.

thumper1 · 07-03-2011, 12:00 PM

Do you NEED a full free ride? If so, you might want to read the thread by Momfromtexas about full rides. It's an old thread with some outdated scholarships but the strategies are the same.

Re: need based aid...the FAFSA really is only used to qualify you for federally funded need based aid...Pell grant, SEOG (if your college has it), loans, and work study. Sometimes the FAFSA is also used for state funded aid for low income students.

I have to say...it does NOT sound like you are from a "low income family" with a very low family contribution.

You need to find out how these "perks" are reported. Even though your family doesn't pay "taxes" on them as in income taxes, they may very well be reported by your family's employer in some other way. And if any of this is deemed "barter" for services, your family would be REQUIRED to report this on their tax return.

mazewanderer · 07-03-2011, 11:51 PM

I am very surprised that the Employer is paying for car,school for a dependent, rent etc. and it is considered untaxed? Are you living in the US or are you living in a different country as the dependents as an expatriate? When an employee is sent to a different country, sometime expenses such as rent, car, etc are paid by the employer. If you live in the US, as far as I know IRS will consider this as taxable income. Some exceptions are made to clergy but not for others.