Wednesday, February 29, 2012

Taxes Done and FAFSA Filed

My taxes are completed. And now that they are, I'm completely sick to my stomach. It seems this year was a busy year for me. The raise I got in July, combined with income from the side gig, plus a loss of the Earned Income Credit AND the Child Tax Credit (since the Princess is now 17) means that for the first time EVER I owe money to the Federal Government. $755 to be exact. I will be getting a $142 refund from the state, but that barely dents the money owed to Uncle Sam. Add that to the debt I'm trying to get out of, and I'm just about SICK to my stomach! Okay I am actually sick to my stomach!

After the taxes were completed, we started work on the FAFSA. It appears that the Princess will qualify for a small Pell Grant, and a Stafford Loan. However, I'm confused on the amount the summary listed because my understanding was that for a first year student you could only qualify for a smaller amount. I am scheduling a meeting with the school college counselor to try and figure this stuff out.

In the meantime though, time to seriously readjust my thinking and my budgeting bottom line. I've got to make some deeper cuts.


  1. That's a bummer that you owe. I'm going to loose the child tax credit next year

  2. On the confirmation page of the FAFSA it will say what your family is expected to contribute to the college costs.

    Take that figure and the figure for attending whichever school your daughter plans on attending. Any difference between the numbers, the college's financial aid office will need to find the way to make up the difference.
    Depending on your income level you can qualify for fed. subsidized loans. If you make too much, then you are stuck with unsubsidized federal loans. The school also has discretion on awarding internal school funded awards and scholarships and work study $. Then there are state funded loans through your state's education association.
    If there is still a gap, then the last resort is to seek private student loans through banks and credit unions.

    Even if you make too much to qualify for subsidized fed. loans, you still should complete the FAFSA because the schools require it when they go about awarding merit scholarships.

    It really is a maze of forms, offices and regulations, etc. Take notes when you go to the counselor. ;-)