I work in non profits as does my partner. Currently we are under the 200k threshold and got a good aid package that the FA officer said wouldn’t change unless our circumstances changed. I see jobs for a higher level/slightly different position that would have me making 7k to 15k more but I don’t want to screw up aid (and might not even get them). I love my work and how it helps people and it’s kind of the same everywhere so have been thinking I should stay put but wonder when it won’t matter for the FA? It seems after the 2028 tax year? Partner’s job is clear cut progressive raises.
I think it’s 2027 taxes that will matter. Our D26 (so expecting graduation in spring 2030) started her first year and that used 2024 returns. Next year will be 2025 tax year. Then third year is 2026 and fourth year is 2027.
Also, in talking with financial aid folks, it doesn’t look like the numbers will be as dramatic as what some NPCs seem to indicate. Basically, you’ll only pay some fraction of your income above $200k. So for the most part, it’s always worth earning more.
FAFSA uses prior prior year tax info, and asset info as of the day you file the form.
So, for a 2030 grad (it sounds like you mean college grad based on the quote below?), 2027 tax return would be the one used for FAFSA 2029-2030, which would be the student’s last FAFSA.
Since you have spoken with FA staff, why not ask them this question? You might also use the college’s NPC to model this change.
In the big picture, even if FA decreased, it’s likely it would be lower than your increase in earnings. Said differently, I would be looking at the total financial impact before hesitating to apply for a promotion/job with greater pay simply because of the impact on financial aid.
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This! Because taking a better job is an investment in your future earnings most likely.
I am sure I won’t get this quite as it has been stated by another poster…but IMHO, your job and income situation should not be driven by financial aid. UNLESS…your kid is getting a full free ride that is means tested and you will go over the threshold.
But agree with others. The 2027 tax year (for 2029-2030 academic year) is the last one you will need for those financial aid applications.
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Thank you everyone. The reason I am wondering
is because I had a one time payment of around $10k on the return we filed for the original FA assessment. When I appealed the original FA decision explaining this, they cut $20k off our contribution! I really don’t need a promotion or $7k - 10k more in income as much as I need to know that the FA will stay at an amount I can afford. (A promotion in my field isn’t always better. Think of it as maybe teaching one fewer class and doing more admin of the dept. when you actually really like the teaching best. ) I just like to think through the ramifications of my decisions and of course I know the FA office knows best but it’s hard to get an answer you can count on with a hypothetical scenario. I think I’d prefer to hold tight for another 18 months through the end of 2027.
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