Financial Aid and Filing Status

"Will I receive more financial aid if I file Married Filing Separately?"

Married filing separately does not offer an individual more financial aid versus married filing jointly. Once you report you are married on your FAFSA, both incomes of the spouse must be reported on the FAFSA. If you are married and report only one person's income, a red flag will be raised.

If your income is higher than the last time you filled out a FAFSA, you will not  qualify for as much need based aid as the last time or you may not qualify for any need based aid. Pell grants and subsidized loans are some examples of need based aid. Depending on your income, you may only qualify for unsubsidized loans. Unsubsidized loans accumulate interest while you are enrolled in school and become more expensive, subsidized loans do not accumulate interest while in school.

Click on this link to see how much financial aid you may qualify based on your new married
income for more specific information.

https://fafsa.ed.gov/FAFSA/app/f4cForm?execution=e2s1
Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.

Fiscal Cliff deal approved! What does this mean for us ?

 Fiscal Cliff Deal  breakdown

 -We will pay  6.2 percent out of payroll checks towards social security instead of 4.2 percent, payroll tax holiday is over

- Income Taxes will only rise on individuals making over $400, 000 and couples making over $450,000 a year, will increase from 35% to 39.6%.

- Investment tax income increased to 20% for those who make over $400,000 a year

-Emergency unemployment compensation extended for a year

-American Opportunity Credit extended for 5 years

-Earned Income Credit extended for 5 years

-Child Tax Credit of $1000 extended for 5 years

-Mortgage Debt Forgiveness extended for another year. So if you are forced into a short sale or foreclosure, you do not have to pay taxes on the amount of loan forgiven.

Tax Charm blog is not legal or professional advice.

You are reading Tax Charm blog at your own free will and you are taking the information provided at your own risk.

I am the legal copy righter of this blog, you may not use, reprint or publish information from this blog without my permission.