October 2016

Tax Insight–October 2016                   

Tax Notes

Schedule an appointment with me to discuss year-end planning.

If you moved this year, I can help you complete Form 8822, Change of Address, to report your new address to the IRS.

New Filing Deadline for FAFSA

The Free Application for Federal Student Aid—known as the FAFSA—is a form that current and prospective college students (undergraduate and graduate) use to determine their eligibility for student financial aid.

There are two major changes to the application process this year:

1. The 2017–18 FAFSA will be available earlier. You can file your 2017–18 FAFSA as early as October 1, 2016, rather than waiting until January 1, 2017. The new submission date will be a permanent change, enabling you to get an earlier start on applying for financial aid.

2. You’ll use earlier income and tax information. Beginning with the 2017–18 FAFSA, you’re required to report income and tax information from an earlier tax year. For example, the 2017–18 FAFSA will reflect your 2015 tax situation, rather than your 2016 circumstances.

If your income has changed significantly since 2015, you’ll still complete the FAFSA questions as prompted, but after filing, you should contact the financial aid office at your school to explain your situation. The school has the ability to assess your situation and make adjustments to your FAFSA.

The FAFSA asks for marital status as of the day you fill it out. So if you’re married now but weren’t in 2015 (and, therefore, didn’t file taxes as married), you’ll need to add your spouse’s income to your FAFSA.

Similarly, if you filed your 2015 taxes as married but you’re no longer married when you fill out the FAFSA, you’ll need to subtract your spouse’s income.

Quote Corner
“I’m funny on camera sometimes. In life, once in a while. Once in a while.” ~Gene Wilder

Did You Know?

The wallpaper in Willy Wonka and The Chocolate Factory tasted like… wallpaper.