It's Time For Some Q&A
Today, I would like to answer some of the questions I have received that reflect the misguided ideas that many people share about financial aid in general, and the nature of it. I feel that these answers will benefit all of my readers because the questions and ideas are very common, but difficult to find answers to. For example, one of my readers's had a very good question about income tax returns and refunds in regard to financial aid applications. I would like to address this first.
Should a person file an income tax return if they are under 18 and working? This answer is contingent upon an individual's situation, and varies from person to person. The law says that someone under 18 does not need to file a return if they work, but anyone under 18 that does file gets the income tax they paid while working (normally deducted from your check) back, and they can get some extra spending money. For example, let's say you worked during the summer, full-time from eight in the morning till five in the evening, and you eared $6.75 per hour. If you received a paycheck every week, that would be a gross wage of $270.00 per week. Keep in mind however, that deducted from that check is your federal income tax, and Medicare tax, in addition to any pursuant state taxes. Now, when you file an income tax return and you are under 18, you are filing as a dependent. But any federal (and in some cases state) taxes that were deducted from your check are funds you are eligible to have returned to you because you were a minor. With the example I have given you, that amount could range from a hundred dollars to three hundred dollars, not including the state tax you may be eligible to receive in addition to that. So it is worthwhile for many students to file, if only to get some spending money.
Does my working and filing an income tax return (under 18) have any bearing on my eligibility to receive aid if my parents are paying my tuition? No. If your parents are responsible for your tuition, and even if they aren't, any funds you receive as a minor (including your tax return) has no bearing on your eligibility. You may have to send them a copy of the return you filed, but it won't affect the amount of aid you receive. If you are not a minor, it does have bearing, and needs to be reported even if your parents are helping with tuition.
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