I am a US citizen abroad.
My family, under the IRS ruling, is not obligated to pay taxes to the US. So, in that case, will my foreign tax returns for my country qualify for federal aid?
Yes, you will use the data from the foreign tax returns. Convert the figures to US$
Is your family obligated to FILE taxes here? Are your parents U.S. citizens?
@thumper1 Yes they are US citizens. They are not obligated to file coz income below the threshold of having to file. I don’t have any income so I am below that too.
Does FAFSA demand any proof like foreign tax returns or anything? What if they match the SSN to the federal tax returns and see nothing?
They don’t match the federal returns, you do. The IRS doesnt just allow companies and schools or even other government agencies accesss to your tax returns, you have to match them. When you fill out FAFSA, it will ask if you are planning to file. You will answer no. You WILL be selected for verification, and at that point you submit whatever documents the schools requires.
Also, if you aren’t filing taxes, you and your parents will need to complete a non-filers statement for each college to which you apply.