Do I receive less financial aid if I have student income?

Question

I earned about $2000 in 2007. I was a dependent when i earned that money. I am now 18. I didnt submit a 2007 federal income tax return. But if i did would it have hurt my chances of earning financial aid?

Answer 1

I don't think it would have impacted your financial aid, if anything it would be very slight.  $2,000 is not much especially when the basis for aid is coming from the much larger amount of your parents total income since you're a dependent.

Answer 2

Questions on the FAFSA form inquire specifically about income that the student has received...

I believe the question numbers are both 35 and 38.

The FAFSA application will ask you if you filed a tax return, but that doesn't affect whether you must provide information about your income. Even if you chose not to file a tax return, you still must provide an income figure. You will be asked to estimate your Adjusted Gross Income using the instructions for the appropriate IRS tax form.

By the way, for FAFSA purposes, you are still a dependent, and will be until you marry, have children, turn 24, join the military, care for a dependent in your home, or become a ward of the court.

And finally - $2000 of income is a minimal amount that will not significantly influence your eligibility for financial aid. If your income was reported to the IRS, you should definitely be certain to report it on your FAFSA form.

Good luck!

Answer 3

Not Anonymous is exactly correct.  You have to report that 2000 no matter what.  It doesn't matter that you didn't file a tax return.  But 2K is not that much money so it won't make much of a difference... it will if you don't report it though.  Your application will get flagged for verification and you'll have to prove you didn't earn any money..  which you did.