I’m going to assume that the paperwork/hassle is duplicative of what you’d need to do anyway in March to file your taxes? If so, think of it as just moving up the deadline a bit…
Even with a complex return with K-1’s, a combination of short term and long term capital gains, etc. you need to get your stuff together regardless. No? And it surely helps you with long range financial planning- just the exercise of filling out the forms can help you identify low performing assets you might want to sell, high performing assets which may warrant moving into a trust, or realizing that you haven’t taken full advantage of your IRA/401K for retirement…
Just a suggestion- sometimes these “financial check ups” although they are a hassle can reveal that there are moves you need to make. It’s easy to ignore them when you don’t have all the data in front of you! And it’s always useful to make sure that your designated beneficiaries on various accounts are actually the person/people you intend… this is a very common mistake. I know people whose life insurance went to an estranged family member… completely unintentionally… or who had other assets improperly titled.
Financial aid forms use prior prior tax year income tax forms. So…what they do this March (taxes for 2024 calendar year) won’t apply until the 2026-2027 academic year.
Of course… but if they filed on time previously, they’ve already done the hard part (tracking down every form, K-1, etc.) And once they pull together this year’s information, one less thing to worry about down the road…
If someone chooses not to, it’s ok as long as they know there won’t be any chance of need aid - and perhaps at a few schools (so likely not on their list) merit aid.
If I go to Kroger with a coupon but leave it in the car but still buy the product (full price), it’s a choice I made. Maybe I’ll get lucky and it will be on saie (merit aid) but maybe it won’t and I can decide then.
If OP has a budget then they can ensure they have a school that will meet their price sans filing any forms.
Thanks all for all the replies and considerations. This discussion has been very helpful. Looks like I can’t close this thread, so if a moderator sees this message, please feel free to do so.