I recently had to open a checkings account because my boyfriend wanted to send money to help my mom out with car payments.I'm worried that I won't be able to get as much financial aid as I need if the FAFSA site see's this amount of money in my bank account,because it's not really my money,it's for my mom.So should I just take out all of it or what?
They only use 20% of your accounts to calculate, as they assume the other 80% is used for living expenses.
No. They only care about the income you claim for the previous tax year.
They do not look into your bank account. They base your financial need solely on you or your parents tax information. You need not take all your money out of your bank. Just apply and if you (If you#x27;re an independent student, meaning over 23 regardless if you live at home still) or your parents make less than about 30,000#x2F;yr., will get financial aid. :-)
Why didn't you have your boyfriend open the checkings [sic] account? Make sure you don't have the money on whatever date the FAFSA says it is looking at your assets. Note: I would highly recommend the boyfriend send the money directly to the bank or dealer rather than sending it to your Mom. If it goes into her account it could be considered income for her.
The FAFSA is considered to be a snapshot of your financial situation on the day you submit it, so you must report any money that you have in cash, savings, or a bank account on that day. (Shannon is not correct--the EFC is based on a number of factors other than what is on the tax return, including money in bank accounts, which is why they ask that question). However, the intent of the question is to determine how much your assets are, not someone else's, so if you are holding funds for someone else, feel free to adjust the figure to reflect just the portion that is yours. Of course, if you're a dependent student, you would have to report the amount that belongs to your mom on her part of the FAFSA as money in a bank account (it doesn't matter whose bank account it is--if it's her money, she should report it.). If the amount she receives for this during the year isn't included in the AGI on her tax return, she should report the total on the FAFSA as untaxed income. FA administrators have the power to ask for any document, including a bank statement, if they feel that the information you put on the FAFSA is not correct. However, in most cases they don't request bank statements because it is assumed that the amount of money in a checking or savings account is fluid. People add and subtract money from their accounts all the time, so unless you give them a reason to question your figures, most schools will accept the amount that you enter on the FAFSA without asking for documentation. Incidentally, it wouldn't matter if you took the money out of the bank. The question asks about money you have in cash, savings or a bank account. So, if it was your money, you'd have to report it wherever you keep it. That includes in the bank, in your wallet, under your bed or in a cookie jar. If it's yours on the day you submit the FAFSA, you would need to include it.
