santookie

Unfortunately we file or taxes very late. Almost every extension. So it makes it hard for when my son will be applying this upcoming summer. So should I still check the financial aid portion? We make just about $100k. So should I not check the financial aid box on applications with my son and just ask for merit scholarships only? Will that make the possible merit scholarships smaller? My parents have a small business and somehow it ends up their accountant does both our taxes and turns ours in August or September. So how does financial aid treat applicants that are unable to provide a completed tax return. Will they take the prior year tax return and current year W2? Any clarification would be very helpful. I was thinking this since we got a paper application from WUSTL today. Just thinking about CSS profile.

arabrab

You estimate, as best you can...but this is not going to work for financial aid if you file taxes on October 15th.

Is there a reason you can't possibly file at least by mid-June?

santookie

If I could push it to June how would that help? I'm just wondering because almost all schools except Ivys and Stanford we wouldn't really qualify for much with income at $100k.

Waverly

Where is your child attending? Small business owners have a very arduous financial aid process. Most none FAFSA only colleges will add back many business expenses to your AGI, making significant aid unlikely for a small business owner with an AGI over $100K.

santookie

Waverly, he is in his junior year of high school. I'm just figuring out what information I need to prepare when we apply.

I've never broke down my return in detail. Our earnings total $100k give or take. We don't want financial aid, we're aiming for merit scholarships. So I'm looking at my first ever application. Which is the WUSTL one for financial assistance it says CSS profile has to be completed. It states for merit and financial need, so does this mean even to qualify for merit only you would have to complete it FAFSA + CSS Profile + WU's Family Financial Profile? I'm just trying to get myself ready, possibly talk to my mom's accountant.

Not to sound naive, I'm the parent of a very smart cookie (I know everyone thinks that). My mother has always handled our families taxes. We had our child very young, beyond doing the 1040EZ when I was 16 haven't really done my own taxes. I drop everything off with the family accountant.

So to even find out if his grades + SAT + ACT + ECs get him merit aid we'd have to complete one of the profiles and submit the return? Then for subsequent years does the profile have to be updated and tax return submitted every subsequent year? I went to a state school and paid it with my paycheck at the time, never getting any aid at all. So this type of stuff is completely new to me.

lastminutemom196

Many schools require FAFSA or CSS for merit money. I am confused as to why the CPA can't get your taxes done in a more reasonable time frame.

We have very complicated investments, etc and we mostly get ours done in April.

cptofthehouse

Then you get your financial aid,, if any, very late if at all. No tickee, no laundry is the way it works. My advice is to file them earlier the best you can and file a 1040X. You are in the category where if your student goes to a school that meets full need, s/he could get a nice award.

happymomof1

The time is NOW to have that chat with the accountant. Find out just exactly what needs to be done so that you can get your tax returns completed early next year. There may be one or two things that you can change so that you can do that. You might find out that the only reason everything is done so late is that you have never asked the accountant why! It could be that he/she leaves yours for last because he/she can, not because he/she needs to.

Is that 100k before tax income, or your AGI? If it is pre-tax, and you don't have significant investments, your FAFSA EFC is probably about 20k, and your child would qualify for need-based aid at many places. Pull out last years' tax papers, and run your numbers through some of the Net Price Calculators, and through the FAFSA calculators at www.finaid.org While you're at it, take a good long look at those tax returns. You may not need your accountant at all.

momknowsbest3

You need to go to your accountant NOW. I know you haven't been involved, but now is the time to step up. Before you go to the accountant, type up a sheet with the deadlines you will have next year. Then tell him that it is IMPERATIVE that the taxes get done early. You might even bring him copies of the FAFSA and other forms you will have to fill out. Ask him what you need to do to make that possible. If he can't do it, IMO you need to find a different accountant. Talk to your mother if need be. STRESS the importance.

santookie

Thank you tons for the advice. The clarification helps a lot! I'll talk to him about this year and the coming year. Thank you tons!

Clarification, when you are applying to schools and want merit aid. Is it considered the same area of the application? Or are they usually seperated into two boxes? Is it just one box you check off for merit and need based aid?

happymomof1

Each institution handles this differently. It really is OK to just ask.

annasdad

We had exactly the same situation. It had been at least 15 years since we had filed our taxes on the April deadline; usually it was October. This year, because I knew we had to get the FA stuff in early - and because of the complexity of our tax situation it's very hard to come up with a reasonable off-the-cuff estimate of our income - I talked to our accountant and our bookkeeper last fall, and we were essentially ready to file at the end of the year, except for a few stray 1099s.

The good news is we got filed, electronically, in mid-February. The bad news is that we got selected for verification (as expected) but the IRS has still not "processed" our return, so we can't either use the IRS uplink or get a transcript. IRS says that should happen this week - we'll see.

notrichenough

santookie - do you have a small business, or just your parents?

If you are straight W2 earners there is no reason your taxes can't be filed by the middle of February or earlier, the accountant is just spreading out his work load.

Pull out your copy of your return from last year - what forms were filed?

For most people, filling out tax forms is not that complicated. Buy a tax program for $20 or $30 and do it yourself. I don't mean to pick on you, but it kind of boggles my mind that you have no idea what is on your taxes.

As for applying for merit - I don't remember any of my kids' applications ever having a checkbox saying "I want merit aid". If a school offers merit aid, you are generally automatically considered (although for some you still have to file the financial stuff to get it, very annoying). Sometimes, for certain scholarships, there are extra things to fill out or more essays to do.

santookie

annasdad - We're in that exact same situation. I'm not very clear on our taxes. I do know we got audited once about 10 years ago. They froze my moms bank accounts and what not. Accountant cleared it up pretty easily, but at the time I remember he was recovering from a heart attack. Yes I guess it's time to go through my tax return and see what might be an issue in advance.

notrich - Well I saw the paper application for WUSTL and there is one single box for merit+financial need and a requirement for CSS Profile + FAFSA + their own university financial planner. Seems overly complicated. But I know for any type of aid I should just assume this. Sorry to rant. I'm very panicy. Not straight W2s though, we have the home we bought a couple years ago interest deductions, deductions for my wife's teaching expenses (she spends tons on her class, but can only recoup like $500 I think) Tons of small things. It's just very cumbersome. I'm going to sit down with parents, then sit down with accountant sometime in the next month. My parents have the small business and multiple properties.

anothermom3

Do you know how long it takes to be able to request a transcript of tax form from IRS? We were selected for verification and I can not yet request the transcript. Filed taxes on 4/17.