FAFSA/CSS Question

<p>Okay...so my parents look incredibly rich on paper.
Our estimated efc is 53k</p>

<p>-_-' should i write a letter explaining to colleges that alot of the money in our investments isn't even ours?
It's our auties who lives in canada (therefore she has no ability to file taxes and must file under our name)
Would colleges care about that if i could somehow prove that the money is hers?
If they did, it would significantly affect my efc.</p>

<p>Why would your family hold accounts in someone else's name? In addition to the FAFSA situation, your family is also paying taxes on the interest these accounts earn. And auntie is NOT paying taxes on her money. I believe that U.S. citizens residing abroad CAN file taxes if they have income or interest earned in the U.S.. they should do so. Perhaps someone with more expertise on this should be responding. You can try writing a letter to the colleges, but the reality is the accounts are in YOUR family's name, not aunties. The accounts should be placed in auntie's name. And her residence in Canada makes absolutely no difference as far as I can tell.</p>

<p>I wonder if there'd be an issue with auntie's Canadian taxes (I don't know anything about the tax structure up north)? </p>

<p>This sounds like a real problem, and my guess is that your EFC will be the least of your family's problem.</p>

<p>She isn't a U.S. Citizen though. She can't pay U.S. taxes because she is a canadian citizen. She does pay us the money for her part of the taxes.</p>

<p>US citizens living abroad not only can but are required by law to file taxes in the US (if they meet the income requirements to file which are the same as for citizens living in the US). The income does not have to be earned in the US - it is their income anywhere in the world including the US. My husband was abroad for 12 years and filed every year.</p>

<p>I would absolutely not write a letter like that to the colleges. As Chedva said - your EFC would end up being the least of your problems.</p>

<p>I crossposted with littleh.</p>

<p>Littleh - it really does not make much sense and there sounds like there is something else going on. Investments can be held in the US by non-US citizens but have to follow all sorts of rules amongst them parts of the patriot act. I think you are opening a whole can of worms you do not want to open here. Having said that the FAFSA instructions do say</p>

Ownership of an asset</p>

<p>Ownership of an asset may be divided or contested in several situations:</p>

<pre><code>* Part ownership of asset. If your parents own an asset with others and therefore only own a portion or percentage of the asset, they should report the net asset value that represents only their share of the asset owned. They would determine the current market value of the asset, reduce the value by any outstanding debt and then multiply the net asset value by their ownership percentage. This result is then reported on the FAFSA.



<p>But if the asset is hels in their names and the taxes are in their names then I think the colleges will be very dubious.</p>

<p>mmkay. guess i'll just leave it alone.</p>

<p>Thanks =)</p>