swimcatsmom

How about telling them to include a method for figuring out the taxable part of scholarships/grants, qualified education expenses for 529s etc. I had to do a spread sheet to figure out my daughters taxable scholarships and what we could take out from my sons 529 account and still have the hope tax credit.

thumper1

Good ideas Swimcats. I like the tax prep software because it does give you suggestions as you go along for deductions, etc. Perhaps your tips could be rolled into the FAFSA merge...if it ever happens. There could be worksheets that are question driven. The calculations and options woud then be provided. And yes...I know we can do this all by hand ourselves now...but in my "point and click" world, I would love to point and click.

swimcatsmom

The differences in IRS publication 970 between what is considered a qualified expenses for 529 withdrawals as opposed to taxable portions of scholarships/grants and again for Hope tax credits etc make my brain spin. Turbotax gives a little explanation but worksheets would be nice. I think I got it all correct.

sueinphilly

be very afraid of asking one government agency to coordinate with another government agency......

they can take a simple process an turn it into a big mess.

Actually, I read something on Barack Obama's website where he recommends just what you mentioned.

http://www.barackobama.com/issues/ed...gher-education

swimcatsmom

Interesting link Sue - I wonder how all the other stuff not on your tax return would get on the application though - untaxed benefits, assets etc. Unless the plan is to make financial aid purely income driven - which I think I read somewhere it is for the majority of applicants anyway (though I may have dreamed/imagined that or flat out made it up )

thumper1

Oh I'm not advocating for two government agencies to coordinate. I'm looking at the tax prep software's ability to help complete an additional form. For example, we use the software to do our fed income tax, then it takes that info and spills it onto our state income tax. We don't have to transfer any information. Poof...it gets done. That is what I want. I want the info transferred from one form to another.

Oh just so you all know...in my email to the tax prep company, I did write that they should gray out information on the FAFSA that is NOT included on the tax return so that the person would KNOW that they have to fill in that info.

sueinphilly

if the government can tap your phone, surely they can 'convince' the banks to transmit all your financial data to them as well.......

Believe me, I would like the process to be simple, but in reality, NO ONE would want the IRS and FAFSA to comingle and there is Not a chance on the PLANET that the banks are going to get involved.

No offense to Obama, but it's a simplistic idea to think that the solution is that obvious.

Doing the FAFSA after you do your taxes means putting <10 numbers from one to the other. If you have your W-2s and bank statements, the fafsa is pretty easy. This of course excludes the whole property value thing (not a chance that the Profile data can be automatically filled out) and if you own a business.

The tax software I use will figure out FOR YOU which credit (hope/lifetime learning/education deduction) you qualify for and which gives you better bang for your buck.

Now as to Obama's idea of making the first 4K of college free.... sounds good to me, but I'm sure my son would be out of school (2011) before that ever happened.

My tax software DOES print out a form with all the #s on my tax return that I need to put on the fafsa. It asks you some questions about pre-tax 401K contributions and other stuff that is on the Worksheet ABC

kelsmom

$4k free sounds so nice ... but it has to come from somewhere, and I can't imagine where the country will get that money (well ... if we weren't at war ... ).

My D could get a free $4k from our state's merit scholarship. Unfortunately, she has to stay in state to do it (private or public, but must be in state). Sigh ... hated to turn down free money, but she was set on expanding her horizons beyond our own state.

sueinphilly

how about this idea, LOWER the interest rate on the stafford and perkins loans. That will help everyone, immediately.

Oh goodness, how many different ways could we be spending the 700,000,000 per DAY that this INSANE War is costing us.

No, I didn't put too many zeros in that number. 700 MILLION PER DAY. And trust me, whatever number the government says this is costing us, they are lowballing it.

sryrstress

One problem which would occur for some families is that all family members are included on the FAFSA, but some children may not be shown as a dependency deduction on the tax return. (divorce, etc.)

I did think the IRS cross-matched with the FAFSA. Glad to know I was wrong. In my experience, while this type of thing sounds good in principle, it doesn't work in practice. Government is involved!

Good luck with the Turbotax idea. Although after Profile, I really think FAFSA is a very simple form. Profile is grueling, and my life is working with numbers.

thisoldman

2004 (?) School and DOE (fafsa) sent S a correction on his 1040 for +$2 (1099-int). About a month latter, IRS sends S a notice of correction to 1040.
I can't remember if we already sent in the 1040 verifications (done all 4 years, school's policy). We are 100% EFC and we filed FAFSA only to qualify for unsubsidized Stafford and PLUS loans, But first we had to be declined for subsidized loans even though we checked box Unsubsidized Application.

Thumper, TAXACT now fills in many of the fields in the FAFSA. New this year?

patsmom

Bob Meighan, a TurboTax VP, posted once on this thread:
Either I am missing something or Turbotax

I suggested further down that he incorporate a FAFSA/PROFILE module into TurboTax like you all are talking about, but he never returned to the thread. I probably scared him off.

I did request it on the TT website, though. And I'm a beta tester for TurboTax so I mentioned it to them in my comments there, too. Keep your fingers crossed...

thumper1

Thanks Patsmom..I'm now a member of TT's "inner circle" and I'm posting my request and idea there too.