529s

Terry’s column in 12/20/15 Hartford Courant, “5 things to know about FAFSA, financial aid, 529s” states “The FAFSA form asks for all income, substantiated by the parents tax return (of both parents, if divorced.)” According to website info at https://studentaid.ed.gov/sa/sites/default/files/fafsa-parent.pdf, when the parents are divorced and not living together it is only the parent’s info and tax return substantiation where the child resided more than 50% of the year. So, what is correct? Thanking you in advance.

Terry Says:  Yes, that is correct.  But there are instances where divorced parents living together must both file.  AND, the income of the new spouse of a remarried divorced custodial parent will also be counted — even if he/she has income that might also be counted for his/her own child’s financial aid!  I admit I could have been clearer, even with the short space available!   Please see an answer I posted in this category  a few days ago to this same question, with a few more details.