I’m a 19 year old male going into my second year of college at a community college in southern California. My parents have been fighting to keep our house but just recently lost it. They’ve been forced to move up north an hour away with my aunt and i’ve been living with my sister and her husband since school starts soon. My sister can’t afford to pay for her apartment anymore and is most likely moving by October and I’ll probably have to stay at my boyfriend’s mom’s house or at a friends house. Since my parents lost their house and i’ve been needing to stay somewhere else, can I put on the fafsa that i’m homeless? Also, my dad makes quite a bit of money so my parents total income was around 92,000 but most of the money has been going to their lawyers. When I submitted my fafsa with the data retrieval tool their income came out to be around 192,000 but my parents reported that extra 100k was fraud, it was not income. So as you can expect my EFC was really high. What can I do to change that because that 100k should not be on there.
I doubt believe you are homeless. You could go and live with your parents where they live.
What does this mean? How did an “extra 100K” get reported on their tax return? Who committed the fraud? This makes no sense.
I’m not really sure. It has something to do with them fighting for their house. It was fraud on the bank that sold their house.
If the house was sold for less than the amount owed -then the amount that was forgiven on the mortgage is taxable income to the homeowner. So in this case if the house was sold for $100,000 less than your parents owed that $100,000 is counted as income to your parents. That would not be fraud by the bank. There was a law allowing for no tax on this debt during the recession but that expired after 2014.
https://www.irs.gov/uac/home-foreclosure-and-debt-cancellation
I would think ou could explain this to the FA office.