<p>I am all about following the law. Tell me where is the financial aid community when it comes to fereting out fafsa fraud? What is done about the families who blatantly lie about which parent the child is living with to collect more need based aid, or the families who make a significant amount of money off the books and do not claim it? I do know people who do this and a funny thing is they never seem to be selected for verification.Just another example of the hard working honest taxpayer being discriminated against.</p>
<p>There are people who cheat in every situation. Some get away with it. Some get caught. Life is not fair.</p>
<p>My tax program can generate a FAFSA based on my tax return. </p>
<p>It did not calculate this correctly.</p>
<p>Since it is a tax credit and not income, it is not surprising that since it was not explicitly spelled out in the directions to include it as unearned income (as is done for the homebuyer’s credit) no one included it. Only to the gov’t does a tax credit = income.</p>
<p>The feds were late to the table on putting this in the FAFSA instructions. I understand that the credit is now included in the instructions, but it was not at the time that many did their FAFSA’s. The guidance was also late … we actually had to go back & reverify every file to update them all to include the MWP credit, which also meant sometimes adjusting aid packages. We also had to update our verification worksheets to spell out that MWP had to be reported as untaxed income.</p>
<p>Just another day in financial aid.</p>
<p>No “making work pay credit” in 2011 tax year.
I read it on the 1040-ES Form on the IRS website.</p>
<p>Also, for 2011, no self-employed health insurance deduction, when figuring self-employment tax. I asked my boss (a CPA) about it & he said yes, from now on the self-employed clients will have to put their health insurance on Schedule A, if they itemize.</p>