Hi, I have this situation wherein I need your advice. We are divorced parents of our kid, who lives with me (I’m the custodial parent), we’re expats abroad. His NCP is in the US. I have the following questions -
Is money transferred from NCP to me (CP) after the kid is over 18 considered child support? This money was meant for the kid only. It was just one time. If it isn’t child support what should it be categorized as? This happened in Aug 2018, is it required to be reported anywhere? It’s just $358.55
Now, a one-time money transfer that took from NCP to me (CP) for my parent’s purpose is categorized as.....??? This took place in April 2019. Amount was $1076.55
How should the above 2 amounts be represented, if it all required to be shown (can I skip those amounts, aren’t they minuscule?) on FA forms? I’m a non-US citizen and not working so not filing taxes anywhere.
Next, my kid was hospitalized in 2018 (outside US) for which the hospital bills were paid. Now I didn’t pay these, I had asked NCP to do so & I’m not quite sure if he paid the bills but they are settled, as per hospital records). He has not confirmed this to me. If had paid, he paid through a middleman who is our mutual kin, lives in our country. Money from NCP was transferred to this mutual kin and this kin paid it to the hospital, if at all the NCP took responsibility for settling the bills. No money was transferred to me in this process. Amount is roughly between $7,000-$8,000. I believe this has nothing to do with me and my kid and hence nothing to do with my kid’s FA forms and thus shouldn’t be reported anywhere as we’re uncertain of this.
Now as per our divorce decree (TX), it was mentioned that the child support ($50/month)=($600/year) will have to continue until the child is 18 or finishes high school, whichever is later. The kid turned 18 in 2017 and finishes HS in 2020, but NCP has refused to give any money citing that he has given in and over excess of what was required by him as per the court. Now I haven’t taken up this legally as it’s a tedious process being oceans apart but can I show this case as a supporting statement for petitioning the NCP waiver? Or since he has paid in excess, actual should’ve been $600/year*17 years (2004-20) = $10,200 but he has paid almost $32,000 till date with no further funds going to flow in. Is he right and as per the decree since he has paid more than what he should’ve or is he against the decree since he isn’t paying it until kid graduates HS? And this in turn points out to my first question, what is payment after turning 18 called?
Just checking for clarity…this student was 18 in 2017, but won’t graduate from high school until 2020? Why?
That this parent isn’t continuing child support is not going to get you a non-custodial parent waiver. You have contact with this parent, and know where he or she is. You can ask them to complete the NCP Profile form. What basis would there be for a waiver?
Any child support you receive after 18 would still be called…child support if that is what it is.
The only medical expenses that matter are unreimbursed ones. YOU don’t have those.
For FAFSA purposes, your finances, as custodial parent, are what are needed. The only thing that from your ex that is added is contracted child support. Other payments made directly to you are not included.
You are responsible for your son’s medical expenses and they were paid. I’d probably leave it at that.
You have are expecting to send a 21 year old to the US for college? Will he be an undergraduate? Will he be s freshman? Since you are not paying state taxes, nor do you have a residence in the US, so you have no resident state. Your son could get state resident tuition rates from state schools where his father lived in accordance to their rules.
How much is available each year for your son to go to college? What are you getting from any FFSA EFC estimator as to what youband he are expected to pay? College can be very expensive in the US. Unless he lives with father, family or friends, the living expenses alone can be $12-18k especially with travel included. At best FAFSA comes up with PELL of a little more than $6k and Direct Loan max for him of $6500. More if you get rejected from a parent loan. But we are talking about $16k maximum that way and only if you you have very low income and assets. That includes foreign income and accounts. Schools that use a FAFSA only do not tend to meet full need
Private schools that do meet full need tend to use another financial aid calculator on top of FAFSA and your Ex would be included on it for most schools. These schools tend to be highly selective.
If your son starts college inFall of 2020, then the numbers you will use on the FAFSA are for this year, 2019. If you don’t file taxes you will likely need to get a Verification of Non Filing from the IRS since FAFSA Numbers are substantiated from the 2019 return.
Nope, not a change. A mistake on my part as I well know I used 2016 tax info for the youngest’s last year just ended. Which would make upcoming year 2017, and as @BelknapPoint corrected me , the 2020-21 school year would use 2018 info
Even if you don’t owe taxes, it might be easier to file. If you do, you could then use the DRT to file the fAFSA. You might also get some tax credits from the AOTC when the time comes.
The FAFSA doesn’t care what child support was ordered, it only cares about what was received in the tax year. If the NCP ‘prepaid’ in the earlier years, FAFSA doesn’t care.
As said above, it might be beneficial for your child to be the dependent of the NCP in order to get instate tuition. Some states don’t even require that the child be claimed on the parent’s tax return and instate tuition is still granted. It’s nice to have that state as a backup.
You need to check the guidelines for instate residency where the non-custodial parent lives. Some states will grant your kid instate status, and some won’t. Don’t make assumptions. Check that state to see if your kid will qualify for instate status.
If NOT, you could be looking at some higher costs to attend college here…either with out of state costs at a public college, or at a private college.
Has this kid taken the SAT or ACT yet? What’s the GPA? Folks here might be able to give you some college tips with more info.
Also, is there an affordable college option in the country where you live?
@cptofthehouse , you mentioned the following - “For FAFSA purposes, your finances, as custodial parent, are what are needed. The only thing that from your ex that is added is contracted child support. Other payments made directly to you are not included.”
I need a bit more clarification on this. All the money that the NCP sent me was transferred and nothing like a ‘special contracted child support’. So all these funds come under ‘payments made directly to me/my bank account’ - and are not included, as per what you just wrote above. So should I skip mentioning the all the direct payments received?
@BelknapPoint , you wrote the following - “If the student’s medical bills were paid by a third party, that would need to be reported on FAFSA as untaxed income to the student.”.
I don’t really know if NCP has paid it or not, but the bills are settled. So without proof, how can I report it on FAFSA and elsewhere as untaxed income to the student?
So just to clarify all these tricky issues, I’ll be reporting 2018 info for this years college apps that have opened. I’m not sure what they call it in the US? Is it 2019-20 year or 2020-21 year for admission and FA purposes if student starts college in fall 2020 provided he applies by this December.
So all the direct payments including the money sent for my parent is to be excluded from reporting?
Also for others asking the questions- We do know the state the state and possible address but we don’t know whether he has claimed our kid in his taxes (I didn’t since I’m not a citizen and don’t pay taxes there either). And the NCP is very unwilling to let our kid come to US for studies or for whatever, he just wants the kid to be far from him. So instate won’t be an option.
The problem is one parent won’t pay and the other can’t pay. I’m still searching for 100% meet need college with or without loans all over US, but as far as I researched, all of them require the CSS NCP form or the waiver. So that’s going to be hurdle or most probably a denial. I can try to pay for his travel and other daily essentials but it’s going to be tough to impossible when it comes to health insurance, cellular plan and other costs. It would be great if the college would cover health insurance as the other expenses can be tried and borne by the student by working and partly through my funds,
Also, the kid suffers from a chronic autoimmune problem (RA), so can you guys give me an approximation as to how much would monthly blood tests and yearly X-rays cost out of pocket, just forget about the insurance for a minute? Also, how much do meds usually cost in the US?
Child support as defined in your divorce agreement or child support contract is reported as income to you as you receive it. There is a particular directed question for that on the FAFSA If your ex gives YOU additional money as a gift, you do not have to report it any more than you do any other monetary gift.
If your ex or anyone else gives your child money or pays for things for him, that is reported as untaxed income to him on the FAFSA and that is a specific question asked of the student. Any income over ~$6660k ( it changes most every year and I don’t know what the amount will be next year) on part of the student is assessed 50% towards the EFC Whereas parental income has a protection allowance depending on age and number of dependents before it is assessed for EFC
So any monetary gift or payment of services for your child from others should go through you so not to be included as The student’s untaxed income.
Contact the provider and ask if the account has been settled and if so how much was paid on the account that did not come from insurance. Any of that amount that did not come from you as the custodial parent should be reported on FAFSA as untaxed income to the student, since it was a bill paid on the student’s behalf. That’s not to say that you cannot ask a financial aid person for professional judgment based on necessary (I assume) medical expenses that were not covered by insurance.
You do not want to try to wing it in the US without health insurance. Even if you could swing the routine care (monthly blood tests and Xrays) if he needs treatment, meds, follow up care, etc. it becomes prohibitive very quickly. AND many colleges will not ALLOW him to enroll without proof of insurance- so it’s moot at a lot of institutions.
I’m going to guess that 15 minutes and a computer with internet connection would yield the address of the NCP. If he has a cellphone, a credit card, a job, owns a car or a condo, has voted in the last 20 years… boom. It is just not that easy to disappear in the USA anymore. So not WANTING to find him is not the same as “can’t be found”.
Are there schools in Europe , particularly in the UK , that are options?
What kind of tests scores, grades, academic courses covered, are in your son’s profile?
Without income or very little, how are you meeting living expenses? You need to fill out all of that info for FAFSA whether it was taxable in the US or not.
Are you married?
Is someone supporting you and son?
In what state does Ex live? If you don’t want to say, or feel it’s TMI, that’s fine. You should look up what in state options are available in Ex’s state. It varies from state to state how a non custodial child is treated for instate college admissions and tuition and scholarships and state. It can be important. Student doesn’t have to be seeking out father while in the same state.
Depending on your son’s academic profile, his entire application package, there are some schools, both state and private , but more for in state residents that can be generous.
How much are you able to pay? It is a low chance lottery ticket that your son is going to get a full ride even with sterling resume and numbers. Even full rides usually have things that family has to pay. Yes, most schools require a purchase of health insurance. Sometimes but rarely included in aid package. I’ve seen people appeal it and get it included. But no at all guaranteed
@BelknapPoint, Is this right? I thought if someone paid bills that are in your child’s name it’s reported as income to the student. But if a NCP or grandparent gives them money or buys them clothes or food, is that counted as income too?
A student must report on FAFSA as untaxed income money (not goods) received from or bills in the student’s name paid by a person who is not otherwise required to provide financial information on FAFSA.
FAFSA question 45.j: Money received, or paid on your behalf (e.g., bills), not reported elsewhere on this form. This includes money that you received from a parent or other person whose financial information is not reported on this form and that is not part of a legal child support agreement.
If NCP or grandparent or anyone other than custodial parent gives the kid cash, yes, it’s reported as Taxable income to the student on FAFSA. If They pay the private school tuition bill, pay te dentist for kids braces, pay for summer music program, sports fees, buys them a car, pays for car insurance in kids name ticket to visit etc etc , yes it’s counted.If they give the money to the custodial parent, it is not.
Food, clothes, is a gray area and there are fin aid officers who have questioned that when a kid is the dependent of someone other than the parent.
Well okay, so the colleges here in UK are around £40,000 yearly, roughly. I’m also considering to send kid to free universities in Europe since he knows German, French, Italian. He’s going to graduate in May roughly so until now he’s top of his class with with A grade (A-levels). He’s taken the SAT which I think is somewhere between 1500-1580, I’m not really sure, I got to ask.
I see UChicago as not requiring the NCP stuff from the list. I discussed this with my kid, but he seems unhappy with the core curriculum they have. Is there any way to skip these broad foundational courses and get right into the major?
Could you guys tell how much out of pocket would we be needing hypothetically for a 100% meet need, like for insurance, cellular, daily essentials on a monthly basis in the US?
@cptofthehouse , I don’t know where NCP is currently, but when we were together, we lived in TX.