Low income/High one-time capital gain, now unemployed

[cshell2]

@BelknapPoint

I’m not understanding why they had to pay capital gains tax. Capital gains is excluded on the sale of a primary residence up to 500K for a married couple. Unless you’re saying they sold the house for a 700K gain and have to pay taxes on 200K?

If you’re under the exclusion threshold (250K single and 500K married) you don’t even have to report it on your taxes at all.

Nowhere does OP say anything about capital gains taxes; the reference is to a capital gain from the sale of a home sitting in a bank account.

I’m also wondering if perhaps the simplified needs test or auto $0 EFC might apply, and also why this issue with 2020-2021 need-based aid is only coming up now.

The op state their “inflated income from capital gains” is affecting financial aid.