<p>Our oldest was accepted ED and when we submitted the Custodial and Non-Custodial forms, the FA came back with me owing the same amount as he. Called the FA office and they said that after all Alimony and CS paid, he makes the same as I. I know this to be false. I think he set up a PC and has himself as its employee and therefore sent in the Employee 1040 with a much lower AGI. Any recourse for me, since this is truly not fair?</p>
<p>It might be all legal but just forward this article and see if he blinks:</p>
<p><a href=“Yahoo News: Latest and Breaking News, Headlines, Live Updates, and More”>Yahoo News: Latest and Breaking News, Headlines, Live Updates, and More;
<p>Good old Richard Hatch. :)</p>
<p>I am not really sure what you should or could do. If you have evidence that what he did is fraudulent, it is one thing, but to wage this war without the proof, could just raise flags that would stall your D’s financial aid. He has sent signed statements stating that this is his income, and if it is not the case and he is caught, he is going to be on the hook. The family EFC would only be increased if his income is truly larger, and though, his proportion of college payment would go up accordingly, it is not necessarily going to decrease yours. The EFC is split proportionally between you and your husband and though you would benefit if his were larger portion, the total amount is going to alot more as well. If you have evidence of true fraud, you might want to go to an attorney and find out what your recourse is. Unfortunately the answers may not be what you want to hear. The biggest question for you and you D should be how would she be implicated if indeed he is lying and gets caught, not that it isn’t fair that you are shouldering a bigger portion of the cost. She could have her diploma withheld or not be permitted to register with her transcript frozen until he makes up hat he owes, and unfortunately the list of deadbeat dads is long, long, long. Many refuse to even file the financial aid forms thereby compromising their children’s financial aid. Many refuse to pay a dime, and in some states there is no recourse. My suggestion to you is to get a consult with an attorney and find out the possible implications of his fraud, and then decide what you should do. Believe me the least of the problems of this is a larger share of payment for you.</p>
<p>Let us know what you do. I don’t know what to say. I always thought everything was very cut and dry with fiaid but maybe not.</p>
<p>If the ex constructed a professional corporation and listed himself as an employee with a lower AGI than he would have had he filed as a sole proprietor, his tax returns would still reflect profits from the PC. If he falsifies his tax return then it is the IRS who will (or won’t since enforcement seems to be on the wane lately) be investigating not the college. The college can only compare information from the FAFSA or Profile with the 1040. If there is tax evasion and he is audited, it might be several years before amended returns are filed, probably after your child graduates. As long as the 1040 and the FAFSA/Profile match up I wouldn’t worry.</p>
<p>Thanks everyone…listen, mol10e, isn’t it I, the custodial parent that fills out the FAFSA. He does not need to, does he?</p>
<p>I will let you all know. Do you think I should call him on it or let it ride?</p>
<p>At least, perhaps, I have enlightened a few others.</p>
<p>I was shocked when the FA office said that after Alimony/CS, he makes the same as me since he is an Attorney and I, a teacher.</p>
<p>Let me know if you have any other ideas.</p>
<p>Yes, but you still have to report his income and he will still have to submit 1040’s in support of his financial numbers.</p>
<p>If he is paying the same amount as you why isn’t that fair? Since when do financial aid offices arbitrate divorce settlements? I am married so I do not understand, where does it say that a parent, divorced or otherwise, has to pay for college?</p>
<p>I think it is great that the non-custodial parent is willing to maintain support for the education of their child and I wonder if there are other issues at work here.</p>
<p>Mr. B~
It does not say that parents HAVE to pay for college; however, if the child wants financial aid, the parents have to report income. Both custodial and non-custodial parents have to report income - AND, here is the really unfair part - step-parents, custodial or non-custodial, have to report income. If you don’t want to report income, have your kid figure it out on their own or pay the whole way.</p>
<p>Now, back to the problem at hand. I believe that child support payments are not taxed on your end but are taxed on his end - which can make a big difference. I don’t know exactly how this works… but is it possible that the college wants the ENTIRE child support amount to go towards education and calculate accordingly? (Of course, we both know that this is not realistic). That would change things</p>
<p>oidder - the more money your ex reports, the less you will get overall in financial aid. I don’t know how your college has reported things to you, but I only got a lump sum calculation - no indication of how it was calculated - and my ex has contributed -0-. So I’m just as happy that he is self-employed & writes off enough stuff so that he also reports a low bottom line on his schedule C and the financial aid forms, too. My ex is an attorney, too, by the way – but it can be a very high overhead business, with lawyers often fronting huge court costs in cases with a high potential for return, and one in which you can get away with writing off all or most of the cost of a lot of expensive purchases like computers and video equipment. So without debating the ethics of the situation … unless you have a written agreement with your ex that requires him to contribute whatever the college tells him too, you may be the one stuck holding the bag if the college elects to reduce aid because of your complaints.</p>