Should you stop claiming your son or daughter as a dependent on your taxes?
The amount of financial aid a student receives is tied to the amount of money he or she makes and, more importantly, to the amount of money his or her parents make. This fact makes some parents think that they should cease claiming their child as a dependent on tax forms. Many wonder if this independent status will result in greater financial aid thanks to severing the parents' much greater income.
That truth is that for financial aid purposes, the federal government still believes that parents are chiefly responsible for their child's education whether or not they are classified as independent. Further, independent status is not as simple as not claiming your son or daughter on your taxes. They must also meet one or more of the following six criteria:
- Be at least 24 years old
- Be married
- Be a U.S. Armed Forces veteran
- Be enrolled in a graduate or professional program
- Be an orphan or ward of the court
- Have legal dependents other than a spouse
If none of these criteria are met, it is presumed that you will help your child finance their education, even if you won't. Thus, your income will still be considered for financial aid purposes regardless of their independence in your taxes.
Further, if you claim your son or daughter, you receive the Tuition and Fees Tax Deduction which will allow you to deduct up to $4000 in taxable income. You may also qualify for the Lifetime Learning Tax Credit and Hope Scholarship Tax Credit.
All in all, it is better to claim your child than not.
Have a question or comment? Leave me one.Why ‘Undeclared’ May Be a Good Idea
The Admission Game just posted an interesting article explaining why indecision about major is much less harmful than many students think. I would like to go even further and suggest that there are advantages to the Undecided major, especially on the application. The most interesting points of the article, I think, involve these three statistics:
You will probably change your major in college! Most students (about 65%) change their minds about their majors at least once while they are in college. Half of them change their minds twice.
Further, a large amount change their minds three, four, or even five times. The record that I've personally experienced has been seven different majors before graduation (he ended up with three minors). Another interesting fact: the most populous major at most colleges? Undeclared.
Many colleges report that 80-90% of the people who graduated more than 25 years ago are now in careers that did not exist when they graduated.
Technology is exploding at a rapid pace. Any sort of Engineering or science-based field is going to see a lot of new development constantly. Even a steady field like psychology has seen new developments (Cognitive Science, an interdisciplinary subpart of psychology, didn't even exist as a field 25 years ago).
About 85% of the parents I survey indicate they are no longer in the careers they intended to pursue when they were 18 years old!
I would think that the percentage would be even higher than this. Though even 85% highlights the fact that any expectation that students have to plan their futures during the admissions season is unreasonable.
My suggestion is for applicants to take advantage of the fact that students typically are not required to declare a major until the end of their Sophomore year. There is no need to have additional stress from trying to pick a field of study when already overwhelmed by simply picking a university.
Unfortunately, there are times that you may need to declare something on your application. Some programs offer only limited enrollment (this is common in fields like Engineering, and especially Bioengineering), and restrict students who did not declare the major prior to admission. These programs are rare and are usually demarcated somewhere on the college's information pamphlet or website, so it is important to declare such a major if one may potentially interest you. You can always switch out later.
But if one of these 'impacted' programs is outside your sphere of potentials, simply leave yourself undecided and choose a path once you're in a position to make a more informed choice. There's no shame in waiting to declare; in fact, you are showing responsibility by choosing to wait and weigh your options. I'm sure the student I knew who graduated in his seventh major wishes he had taken that advice.
Have a question or comment? Leave me one.Reader Question: Saving Money on Tuition and Housing
Reader and parent Krystie posted a question regarding ways for nonresident students to save money on both tuition and dorm fees.
My son has recently started attending college in another state from where we live. We live in California, he is attending college in Idaho. He is currently attending a community college that has many of the same features as a 4-year college, such as dormitories. Are there any hints you can give me to get the tuition and dorm fees reduced for an out-of-state student? The admissions office told us about a WUE form that provides students from other “Western” States with a $950 credit. He is currently staying with a family member but we would like to get him into a dorm. Thanks for your help.
Great question, Krystie.
In response, I have written a new article entitled, How to Pay In-State Tuition at Out-of-State Schools. In addition to the recommendations I have made there, staying in contact with the admissions and financial aid offices at your son's college is always one of the best ways to discover money-saving opportunities.
As far as dorms, I don't know of any special way to save on these costs for nonresident students. To the best of my knowledge, universities charge uniform fees for on-campus housing without regard to residency status. Depending on his exact location in Idaho, the cost of living off-campus may be lower than living in a dorm (as is frequently the case with colleges who have expensive meal plans). If your son lives with a few of his peers and resolves to prepare his own meals each evening, he could save a lot of money this way.
I hope this has been helpful. Best of luck to you and to your son!
Have a question or comment? Leave me one.Thank-You Notes: The Secret Edge to Winning a ‘Yes’?
Can a well-timed thank-you note be the key to scoring admission into a highly competitive ivy league college or university? Well, no. But students should send them anyway. And here's why:
It is important to remember that during the college application season, there is more to it than just playing the admissions game. There are real live people who work every day in the admissions office. They spend this time of year reading stack after stack of applications and essays, largely going un-thanked. But they are also busy during the 'off-season'. They are the tour guides who walked you around campus, and the voices on the other end of the phone when you had financial aid questions. They mailed the application and wrote the university information booklet. They set up booths at local high schools and made phone calls to potential applicants. But most of all, they worked as hard as possible to make the application season as smooth as possible.
All of these positions are done largely without thanks. When I used to conduct university tours, the highlight of the job was the special bulletin board in the office with all of the thank-you notes we had received. It was a point of great pride for us to be named personally in a note.
None that we received ever helped an applicant to get accepted, unfortunately. But the gesture is still nice and always very appreciated. In an era in which students will cross t's and dot i's in special ways if they think it will help get them into college, it seems too many forget about the general maxims of generosity and politeness. I have even heard students who said that they wanted to send thank-you notes, but were afraid of saying the wrong thing and hurting their chances
Even more distressing are the countless templates and hints online for notes "guaranteed" to help, as if generosity could be manufactured and monetized.
Send a personalized thank-you because you're genuinely grateful, not for any sort of competitive edge. And don't just thank interviewers and tour guides. Recommendation letter writers, high school counselors, and helpful teachers deserve special praise as well. A little extra courtesy goes a long way in making someone's day.
Students: write personal, physical thank-you notes to everyone who helped you along the way. And parents: encourage your son or daughter to write them, but also send out a few notes yourself. We at the tour office loved a good thank-you from a grateful parent amidst the wave of frustrated and angry ones. It may not help anyone get accepted to college, but it will make you a better person.
Have a question or comment? Leave me one.How to prepare for the SAT essay
The essay is dreaded by almost every SAT taker. Writing a polished persuasive piece in only 25 minutes seems like a nearly impossible task at first glance. Fortunately, there are some ways to make it easier.
This website has several tips for maximizing your essay score. You should first read some general points at the SAT writing section article, then read the specific strategies you will need in 25 Minute Miracle: How to earn a 12 on the SAT essay.
Before you sit down to start practicing, though, you should read sample essays. The College Board website has nine sample essays that you can read, one example each of essays scoring 1, 2, and 3, and two examples each of those scoring 4, 5, and 6. You should read all of them to get a good idea of what the graders are looking for. Focus primarily on the difference between a score of 4 and 5, and especially on the differences between a 5 and 6.
I am willing to help out with your essay. Just head over to the contact page and paste an essay you have written. I recommend writing it in pencil first and then typing it, otherwise you won't get an accurate view of how much you can actually write in 25 minutes.
Have a question or comment? Leave me one.FAFSA State Deadlines Approaching
The FAFSA (Free Application for Federal Student Aid) is not just for federal student loans, but can also help you to get other forms of financial aid, like state grants. Since you don't have to pay these grants back -- it's free money -- it is vital to get your application in before the deadline.
Filling out the FAFSA is time consuming and requires tons of documentation and information, such as federal income tax returns, W-2 forms, bank statements, and investment information. And if you're under 18, you will need all of your parent's information, too.
17 states have deadlines coming in the next three months:
Feb. 15: Connecticut
March 1: Maryland, Michigan, Missouri, Montana, Rhode Island, Tennessee, West Virginia
March 2: California
March 10: Indiana
March 15: Idaho, Kentucky, North Carolina, North Dakota
March 31: Mississippi
April 15: Arkansas, Delaware
An estimated 2 million students missed out on free money last year. Don't be one of the unlucky ones this year. Start gathering the required documentation and filling out your FAFSA now.
You can begin filling out the FAFSA online at www.fafsa.ed.gov.
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