Yes, I used DRT and think there is a glitch because of the reasons I have already mentioned…
Wondering of anyone else is having similar issues
AGI is less than $50,000 & parents could have filed a 1040A/Ez, based on IRS determination. No glitch. Simplified Needs formula criteria met, so answers to other questions related to SNT are not needed. They will not be asked because they don’t need to be asked. The answers can show up seemingly incorrect on the form, but it doesn’t matter. The skip logic populates the answers as no simply as a default.
That still doesn’t explain why the asset questions are still there.
Do we know which states require assets even if SNT applies?
Also did you try to go to the student section and see if it asks for student assets or if they are skipped?
Since you haven’t submitted the FAFSA yet, can you try an EFC calculator or PM @joecoletta for the EFC spreadsheet to calculate your EFC with SNT or not?
I would expect the assets ($21,000-$14,700 APA) to add $200-300 to the EFC.
So for SNT the FAFSA only uses AGI, not the untaxed income from the 401k contributions to determine <$49,999?
You are very concerned about the impact of YOUR assets on your FAFSA EFC.
- Read what Kelsmom wrote...if those other questions were grayed out, then skip logic is ignoring your assets for FAFSA purposes.
- It IS possible that your state requires your assets to help them determine any state grant awards. But that’s a separate issue than the FAFSA. What state?
- IIRC when assets are NOT required, there is a question about whether you want to include them...or not. Did you answer yes to that?
- You are very concerned how your assets will affect need based aid. First...do you have a HUGE amount in assets? And second...is your kiddo applying to colleges that guarantee to meet full need for all?
5.if your student is applying to colleges that meet full need for all students, these use the Profile in addition to the FAFSA, and your assets WILL be included there. Exceptions…Princeton which uses its own form, and University of Chicago which uses only the FAFSA.
I’m also curious about @mommdc ‘s question.
AGI at $48,000 but adding back the 401k contributions kicks that up to $64,300 - what is the impact of that? Does that mean he is no longer eligible to SNT?
The simplified needs test is based on the AGI…which doesn’t include the 401k contributions. No assets counted.
@kelsmom can clarify…but I believe the FAFSA formula for EFC calculation purposes would include the 401k contributions. But if SNT was applicable, no assets would be counted.
@thumper1 - thanks for clarifying
@thumper1 is correct.
I understand that the way the skip logic works can be confusing, as we see when the state requires assets to be reported. I recall a session I was in last year during training when aid administrators were confused about something we saw in a skip logic demonstration, so I get that non-finaid folks would be extra confused. Any time you have questions about whether or not something is being properly calculated, you should do a manual calculation using the EFC formula worksheets. If the EFC calculated on the FAFSA matches the EFC you get with a manual calculation, everything is good.
I thought OP was, in part, expressing this concern: “but we are on reduced lunch. I printed a summary after completing, before submitting(which I have not done yet) and Free/Reduced Price lunch is filled in as NO, even though the question never came up.”
Regardless of state interest in assets or not, will this affect his FA position? Or is it superceded by other detail he provided? Is there concern that it autofilled a No?
Exactly…
No, being on reduced lunch affects nothing other than the ability to be considered for SNT formula. There is no concern about it being prefilled, as long as the SNT formula is being used (based on some other criterion being met).
I can confirm that for 2015-16 FAFSA, I entered an income below $50k it did not add back the IRA or 401k amounts (I had both). It did ask for the assets in this state (Colorado) which was annoying because my child did not go to school in Colorado and I had to go look at bank accounts. For the child who lived in Florida, the assets questions were not asked. At that time, you answered the questions before ever using the DRT. At that time, we were using the prior tax year, not the prior-prior. FAFSA was filed after 1/1/15.
In the years after that, I don’t ever remember entering assets when the income was below $50k.
I definitely had assets above the asset protection allowance as, at the time, for a single parent of my age the asset protection was about $8k.
I suggest that the OP file the FAFSA without the DRT, and then go back and use the DRT in a few weeks. She will then have the EFC without any assets to compare if using the DRT changes anything.
Yes, I can go ahead and resort to not using DRT. Then what is the purpose of IRS DRT is the bottom line?
If it cannot be relied on by all types of applicants… sure makes me quesion its reliability then… its useful in some cases, but not others? Will we be missing out on additional financial aid since some data being submitted appears inaccurate due to questions skipped and pre-filled?
Please answer…DOES YOUR STATE REQUIRE ASSETS?
And yes I’m yelling because the question has been posed multiple times and has not been answered.
It is very…VERY possible that you qualify for simplified means test based on what you did complete…and that is why the questions are not available for you to answer. You don’t need to answer them because SNT is already a YES.
In your case, the fields for parent assets are there. We’re you given the choice and answered yes? If so, that’s why the asset questions are there.
OR does your state require asset information…because some do (as noted by @twoinanddone ) and some don’t.
If your state requires the asset information…it’s for the state use. It will NOT affect your federally funded need based aid or your FAFSA EFC.
Your contributions to your tax deferred retirement accounts in 2017, however, will be used in the FAFSA formula to calculate your federally funded need based aid. No one gets a bye on these contributions.
Does the FAFSA get flagged for verification if you say that tax return is completed but you decline using DRT?
And regardless of how you fill out the tax return information (DRT or manually), don’t forget to list the 401k contributions under untaxed income in question 94 a.
Yes, I understand about the 401K contributions, …
So sorry, forgot to reply - we live in New York,
@sybbie719 does NY state require asset information on the FAFSA form?
Probably not by the FAFSA folks…but colleges will want either use of the DRT OR a tax transcript to verify that what is ON the FAFSA is accurate.
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Hi. This is Joe, the steward of our FAFSA Spreadsheet for Estimating Dependent Students’ EFC and Pell Grant Awards. I am traveling with my 83-year old father to his 65th high school reunion and finding it hard to keep up with things beyond my field of vision.
However, I certainly want to help anyone who has questions or concerns about the spreadsheet. Unfortunately, I have not read the complete thread and do not want to make any assumptions that might cause me to contribute useless information to an otherwise thoughtful discussion.
10-14-2018 at 8:56 pm
It did not give me the option to answer one of the following 3 questions above, it skipped over them - but we are on reduced lunch. I printed a summary after completing, before submitting(which I have not done yet) and Free/Reduced Price lunch is filled in as NO, even though the question never came up. We also could have filed 1040A, but again the question never popped up and populated as a NO on the summary.
@genesh or anyone else,
(1) Does the statement, “It did not give me the option to answer one of the following 3 questions above,” refer to the spreadsheet?
(2) If it does, I would like to understand and resolve that concern ASAP; i.e., within the next hour or two, if possible.
Thank you very much!
Joe
New York is not on the list for state needing asset info.
Thank you for replying… The issue is with FAFSA itself. I did use your spreadsheet not too long ago, very helpful. It DOES NOT skip the qualifier questions and gives me a chance to answer them. Hense, even more suspicion with FAFSA DRT tool.