In 2015, we included our son’s dividend and capital gains income (his only income that year) on our tax return. Does anyone know how one would report this in a FAFSA application?
Any ideas??
It seems that one can’t report the student as filing if they didn’t file, so I am looking at what options I have in reporting this somehow under our (his parents’) section. Doesn’t seem to be a clear place to report his dividend and capital gains number however. Have you seen this come up before?
@mommdc? Do you l ow?
To,the OP:
Are you just completing your FAFSA NOW for the 2017-2018 school year?
Is this your first fafsa? First year in college 2017-2018?
Second FAFSA, first time with this issue.
The fafsa last year also used the 2015 tax year info.
@sybbie719 and @kelsmom may also be able to answer your Q. between those 3 (including belknappoint) you should be in good shape OP.
Well I would think that the 2015 tax return already includes this student dividend income in the AGI.
So the FAFSA would have everything under the parent income.
The FAFSA asks for AGI, income from working for each parent. Then the rest of AGI will also include other taxed income, like the dividends.
If you also list the dividends under student income, not sure if that is right. Also not sure what the answer to the question should be whether the student filed a return. Probably no.
I would probably contact the college and ask how they want you to report this.
I know you can elect to report the child income on the parent return if the child only has certain unearned income under a certain amount. But the child most likely wouldn’t have owed tax (otherwise IRS wouldn’t allow this, because kiddie tax would apply), and child could have used some of the free file options, so I don’t think this is a good option for a student having to file FAFSA.
The child income will probably be treated as parent income in this example, since it is reported as part of parent AGI, but not sure. I assume the school might still ask for a nonfiling letter for the child since no return was filed, and no return was required to be filed.
Did you file a fafsa for,the current school year…2016-2017? You said this is your second fafsa.
I never reported my kids’ income on parent return. If the child dividend income is not already included in AGI on parent return, then you might have to list it under student income on FAFSA.
@Madison85, do you have any insight?
Student dividends and capital gains income is reported on FAFSA question 36, regardless of whether or not the student filed his/her own return. It would not be reported as parent income, even if the student income was reported on the parent tax return.