Tax question - Page 2

sk8rmom · 04-19-2009, 08:28 AM

Quote:

I think and I'll have to check with her, but I think she mentioned she worked from home briefly for a company and received a 1099 BUT her tax person told her that wasn't the problem, it was the EIC that made her not able to file the 1040A. The work at home job she had was only temporary, but she said she made enough to receive the 1099 for the income.

jazzie, mystery solved...her 1099 income (probably over $600 if a form was issued) DOES make a difference. She's not eligible for 1040A or EZ with self-employment income and MUST file a 1040. This would disqualify her for the Automatic 0 EFC, but not the Simplified Needs. So, with assets excluded and an AGI of $15K, she should have a 0 EFC anyway.

Quote:

My understanding is that SSDI is reported on the FAFSA (but depending on your family income some of it may be untaxed). Receiving SSDI does Not qualify for O EFC.

ncmentor, no UNTAXED SS benefits, including SSDI, are reportable on the 09/10 FAFSA, that was a change made last year. FAFSA question 47i specifically excludes these from income.

Quote:

Are all schools required to issue 1098-T's to recipients of grants & scholarships?

Generally, yes, there are limited exceptions (certain gov't/veteran benefits, students who are non-resident aliens).

thinkingofu · 04-19-2009, 06:48 PM

The level of technical expertise displayed here is breathtaking. All contributors deserve thanks.

kelsmom · 04-19-2009, 07:47 PM

Moneycoach, we post them online for students. My D's school sends them in the mail. One way or another, the school has to provide you the info.

Findmepete · 10-28-2009, 12:11 AM

Does it make sense that a student would received grant/scholarship money because of need, then make it taxable? Am I missing something?

swimcatsmom · 10-28-2009, 12:28 AM

Yes it is strange. Only the part in excess of qualified expenses (tuition/fees mostly) is taxable. But it has always seemed strange to me. My daughter gets hit even worse with State taxes on her scholarships/grants than with federal taxes. Still it is nicer to have the grants/scholarships and pay the taxes than not have the grants/scholarships.

3bm103 · 10-28-2009, 06:54 AM

What gets me is that students receiving fellowships for graduate study have no taxes taken out of their stipends and then have to pay tax when they file their return. One school I know at least tells them that. The other which I am familiar with doesn't.