<p>Ok, two of my neighbors are getting a job at a golf course this summer. They will make a lot of money from what i understand, which they will use towards their first year in college. My question is, if they dont report this on their fafsa, how will schools know whether or not to increase the EFC?</p>
<p>schools or govt. can’t know under the table or all cash income. This is one of the reasons why a national sales tax in lieu of income tax is a nutty idea.</p>
<p>also – income that they receive over the summer (that is reported) will effect next year’s EFC. This year’s EFC (2006 – 2007 school year) was based on the income for 2005.</p>
<p>also – student’s have a portion of their wages exempt (I think $2500) and then they are expected to contribute to college expenses. it looks like that is exactly what they are planning to do. Even if they are using the money for spending money each month at college – that is part of the cost of college (as long as it isn’t a ridiculous amount).</p>
<p>I think it is great that they are working hard this summer, have found a job where they can really earn some money and plan to use it for college. This is what they are supposed to do.</p>
<p>If they make a significant amount in tips (which they may) they still plan to use it for college – and I sincerely think that the amount they can earn in tips is not so tremendous as to be the grounds for concern.</p>
<p>yeah but they are getting paid by the golfcourse…checks. So, what if they dont report this on the fafsa?</p>
<p>they have to report…its against the law not to. If they want to take a chance, great. But if they get caught…they are ****ed</p>
<p>if they are getting paid- they will need to file income taxes
If they are filing income taxes, they more than likely will need to submit authorized copies to the school they are receiving financial aid from.
Since schools generally assume students are earning summer income, and account for that in their aid package, it doesn’t make sense to try and “hide” income in order to get a “better deal”</p>
<p>We have been selected for “verification” EVERY year (and DS didn’t receive a dime of need based aid). This meant we needed to send both his and our income tax returns complete with all W-2s and 1099s. Bottom line, if the golf course is paying the person, this would easily show up as income. It is fraud to hide assets to gain finaid. Is it worth it to end up in a legal action and risk losing both admittance and finaid due to income reporting fraud? I think not.</p>
<p>Think about it, is the golf course as the employer really going to jeopordize themselves by risking themselves, to audits, and fines for their payroll practices (an no paying payroll taxes) just so a kid can try to get over on their FA? the employer will report to the IRS/ and SS the wages they are paying out.</p>
<p>You friend has to look at the bigger picture, is a few dollars worth him/her losing all of their aid?</p>
<p>thats what i keep telling them…i said," theyre gonna find out." I just don’t know the details and the ins and outs, which made it hard for me to prove a point. They kept saying “how?? how?? if we dont say it, they wont know”…Kinda made me mad…so i’ll at least backup my arguments with some facts. thanks guys!</p>
<p>actually I believe that the schools are obligated to insure that the money they disburse through the help of federal programs are actually going to students that are entititled to that money.</p>
<p>NOt to divert the thread on govt spending money on what nobody voted for, but there are some areas that they do try and run herd on- and federal student aid is one of them</p>