<p>Let’s please keep healthcare positions to one of the ACA threads. They’re long and messy and some do have quite a grasp. Just saying.</p>
<p>William and Mary. Hope it’s on the list. Low cost and lots of techies. Hope she has visited. Young friend there gets merit money. Fafsa only, I think. Reputation. </p>
<p>@fccdad</p>
<p>None of it is income to your D. That poster is mistaken. However, if she has the money sitting in her acct when she files FAFAS then it could be an asset issue.</p>
<p>I agree. The OP’s insurance plan is very high. If he’s covering his D (family plan) then maybe his Ex can carry her and he can drop down to a couple’s plan. Or it may be cheaper to drop down to a couple’s plan and buy D’s insurance thru her future school? </p>
<p>Anyway…the opposing households need to Kumbaya and break-bread so that their D has affordable choices next year. This all seems to be a train-wreck in the making and someone needs to lead the lemmings onto a safe track. </p>
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<p>Yes, you’re right, twoinanddone. That was a bad choice of terms. My point was that it is more beneficial to her for dad to pay the bills directly, if he has the money to pay any bills at all. Better than putting it in her account as her own assets.</p>
<p>The fix for not having it show up as a student’s asset is just to spend it (pay tuition) before filing the FAFSA. MOney in, money out, no asset to claim.</p>
<p>But if things are as FCCDAD has stated and the ex-wife household has income of over $100k/yr, it won’t matter as his daughter won’t qualify for any need based aid anyway. He may just want a way of easily accounting for the money he gives her, a way to teach her about finances and her obligation to pay her own bills, a way to get a little credit from his daughter of the amounts he pays for her</p>
<p>A parent (or grandparent) can gift up to $14,000 per year to their children (or to anyone I believe) tax free. After that amount, it is taxable income.</p>
<p>But you can pay for their education, and that isn’t considered income to them.</p>
<p>I don’t have any knowledge about the financial aid process and how these gifts might impact the process however.</p>
<p>cptofthehouse, when I see some of college decisions in our community I have to just shake my head. There are of course the real academic stars who also have very very high family income, double lottery winners. Last year had one on the soccer team in the end choosing between Duke. NWU, UNC, Dartmouth, UCB and a handful of others. Those kids set the tone and expectations for everyone else. Then there are others who sacrifice reasonably to make dreams come true. Another soccer kid desperate to play soccer in college, but not D1 material. A LAC-type kid. DIdn’t get any of the big scholarships he tried for, but ended up choosing a nice D3 midwestern LAC, recruited with half his club team. It’s too expensive and family won’t be buying new cars or taking vacations for a few years, but probably won’t bankrupt either, so that’s a family decision and not a bad one. But then there are the ones like soccerkid3. Applied to top schools and so wanted to go to WUSTL. But got waitlisted and denied everywhere. Except Case. He didn’t care for it particularly, but going there was a way to save face and not have to attend flagship. Parents not rich and have to sacrifice to make this happen. Our flagship has most programs ranked much higher than Case. To me this seems crazy and I saw a LOT of this sort of thing. But saving face doesn’t mean a thing to me and I wouldn’t spend even one dollar on it. To some people it is huge, so I guess I shouldn’t judge. It’s their money after all. Still, gotta shake my head…</p>
<p>@amarylandmom: You are incorrect , gifts are not taxable income. Where did you get this idea?</p>
<p>The gift might be taxable to the giver, not the receiver, but even the giver is rarely taxed as there are lifetime limits and exceptions. Really, if anyone wants to give me $14000, I’ll figure out a way that it’s not taxed to you.</p>
<p>My wife and I have more children. Much younger than D1.</p>
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<p>To start with, the OP and his wife can each give $14k/year gift tax-free.</p>
<p>Re: home mortgage/prices, there is a reason my avatar picture is a super NoVa.</p>
<p>lol…Northern Virginia!</p>
<p><<<
My wife and I have more children. Much younger than D1.
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<p>Ok…that puts a different spin on things. Can’t really downsize, need the family plan insurance. </p>
<p>Your home state is VA, and maybe D gets instate rates there. Does ex-W live in another state where D could also get instate rates? </p>
<p>Either way, this seems to be heading towards a situation where D needs to take the large full tuition merit…at least for a couple of years till everyone can be in a position to adequately fund college. If your D went to a full-tuition school for at least 2 years and then transferred (if finances allow), then maybe it can be a win/win.</p>
<p>Are you able to call the ex-W and have a calm, thoughtful, civilized discussion about this? Or will such a conversation result in pointing fingers concerning who should be paying for all of this? If a phone conversation would be too contentious, then could you send an email to both Ex-W and D and politely write down the realities that both households face (student loans, little extra money, debt, spouse unemployed, etc) and then state the obvious solution…a full merit scholarship, a $9500 student loan*, and then the two households split what’s left over (one pays for one semester of food plan, the other one pays the other). Include the option that in two years, if everyone’s finances improve, then D can transfer to School X.</p>
<p>Such a letter should start out nice and civil…both parents wanting what’s best for D taking into account the financial limitations that both families face.</p>
<p>*$9500 student loan assumes Ex-W applies for Plus and will be denied because of delinquent student loans.</p>
<p>I empathize with you FCCDAD. I am a divorced custodial parent and have been dealing with FA with my ex for ten years. It is very risky to commit to any school when you don’t have confidence in the other parent following through with their financial commitments. I can’t honestly explain how I have made it this far but my last student is a junior so only 1 1/2 more years!
I would suggest your D1 have some serious financial safety schools. Secondly decide exactly what you can pay and stick to it. Assume for the moment your wife doesn’t get a job until next fall (hopefully worst case) what would you commit? I would also assume no money from the custodial parent. Given that, what schools are possible? Just try and make sure that there is at least one school on her list she could attend with your money, her loan and merit scholarships.
It would be awful if she can’t attend because she doesn’t have that financial safety. I am betting her Mom has no clue how hard it will be, especially after losing child support $, to have money for college. I wish you the best - it can be done. And yes you live in e very expensive area - but also a pretty good area for jobs so hopefully your wife will be working soon.</p>
<p>Does the ex-W have additional kids?</p>
<p>Ex has no other legal children, but her husband does. They are in another state and D1 is supposed to apply to at least one public school there where I expect she should be offered merit money. Not their flagship campus.</p>
<p>Communication: I can email ex a URL without comment. Considering less than 6 months ago she went to court to try to get full (not just primary) legal and physical custody, that’s about the limit of communication without attorneys.</p>
<p>@madison85, </p>
<p>I stated </p>
<p>“A parent (or grandparent) can gift up to $14,000 per year to their children (or to anyone I believe) tax free. After that amount, it is taxable income.”</p>
<p>Gifts UP TO $14,000 are tax free. Over $14,000, taxes must be paid. </p>
<p>Check the IRS website for yourself. I copied and pasted the most relevant question below, or you can check it for yourself here. </p>
<p><a href=“Frequently Asked Questions on Gift Taxes | Internal Revenue Service”>http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Frequently-Asked-Questions-on-Gift-Taxes</a></p>
<p>How many annual exclusions are available?
The annual exclusion applies to gifts to each donee. In other words, if you give each of your children $11,000 in 2002-2005, $12,000 in 2006-2008, $13,000 in 2009-2012 and $14,000 on or after January 1, 2013, the annual exclusion applies to each gift. The annual exclusion remains $14,000 in 2014.</p>
<p>The one point I’m not clear on is whether you can give gifts retroactively. Perhaps if you didn’t give a gift in 2013 for example, maybe you can give that gift now in addition to the $14,000 you gave this year. </p>
<p>At any rate, none of this is really relevant to the OP’s situation. I just brought it up because there was some discussion of giving the daughter money versus paying tuition directly.</p>
<p>IT’s not the tax implications that are of issue when NCP pays the tuition at a FAFSA only school. That payment is regarded as child support of such. Because the assets and income of the NCP are not considered, any payments from them have to be. Same if a grandmom or aunt of any Good Fairy steps in and pays the tuition. Doesn’t matter if the costs are paid directly or to the child.It’s unearned income.</p>
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<p>@amarylandmom, that’s incorrect. A gift is not taxable income to the recipient, no matter how large it is. It is the giver who would have tax consequences if the gift is over $14,000.</p>
<p>cptofthehouse is correct. The FAFSA will be based on the financials of the parent with whom the child has lived the most in the previous 12 months. So for freshman year, the FAFSA will be based on the mom & stepdad’s situation.</p>
<p>If during the freshman year, dad & stepmom pitch in $X, then that $X will need to be reported on the FAFSA for sophomore year along with financials from mom & stepdad (assuming that m&s are still the parents of record for the FAFSA).</p>
<p>For the record, related to college expenses: <a href=“http://www.edvisors.com/taxes/tuition-gift-tax-exclusion/”>http://www.edvisors.com/taxes/tuition-gift-tax-exclusion/</a> But also, as we understand it, she is not going for need based aid.</p>