This guide will help you understand the FAFSA, everything you need to know to apply, and what to expect when you're done.
First, you’ll need tocreate a Federal Student Aid ID (FSA ID), which is used to access financial aid information through college and beyond. Parents will also need their own FSA IDs to complete the form. It’s crucial not to mix up parent and student IDs, as this c...
To fill out the FAFSA, you need to provide certain information about yourself along with some information about your or yourparent’s finances(if you’re claimed as a dependent on their taxes). According to theFederal Student Aid website, you might also need: At least one college or univers...
Using 2023 poverty lines for the continental U.S., a dependent student whose parent is a single parent will be eligible for the maximum Pell Grant if AGI is less than or equal to $44,370 if the student is an only child, with an additional $11,565 allowed in AGI for each sibling. A...
In 2021, you can contribute a maximum of$2,750to an individual FSA account and$5,000to a dependent care FSA. Where can FSA dollars be spent? You may be given aflexible spending card(also called a flex card), which can be used at pharmacies, doctors’ offices and online retailers for...
However, you need to determine whether you should use your Dependent Care FSA or the child and dependent tax credit, as you cannot double-dip. You may be able to use both, but you will need to deduct the amount of your Dependent Care FSA from the tax credit that applies to you, accor...
If you’re a dependent student, one of your parents will also need to create an FSA ID (whichever parent is reporting your family’s info on the FAFSA, it doesn’t matter). Note that your parent needs to create their own account; they can’t share yours, as each FSA ID acts as a...
For instance, in order to contribute to an HSA, you generally must be enrolled in a qualifying high-deductible health plan, cannot be claimed as a tax dependent, and cannot have disqualifying additional medical coverage, such as a general purpose Health FSA or HRA. It’s a good idea to ...
Dependent care FSAs- Similar to a health FSA, except funds are used to pay for eligible child and dependent care expenses. Drawbacks of tax-advantaged accounts While tax-advantaged accounts can offer great tax benefits, they aren’t without certain downsides. For example, when ...
A grace period of up to 2.5 extra months to use the money in your FSA3 Carrying over up to $610 per year to use in the following year4 Your employer can offer either one of these options but not both. Offering either of them is not required. At the end of the year, or at th...