Financial aid Question

[Anonymous]

I am a single mother of a preschool aged girl. I currently work PT as a housecleaner and nanny while we live w/ my parents. This is a temporary situation and I will be returning to work FT once my daughter enters kindergarten. I have applied to a few private schools and am not sure how to report my income (meager as it is) on the financial aid forms since I only work PT and am paid in cash. Should I estimate the amount I am paid weekly (or monthly)? I don't get a W-2 or anything. My ex pays monthly child support. My parents allow us to live w/ them while contributing to household expenses. TIA.

[Anonymous]

Are you filing taxes?

[Anonymous]

OP -- I'm going to take a guess that you haven't been filing taxes, and I'm no expert, but my additional guess is that you probably should. It sounds like you aren't earning a lot of money, so chances are that you wouldn't have to pay any taxes off of what you are earing, and might even qualify for a credit back. Someone else here might know more than me.

[Anonymous]

I am the OP. This is the 1st year I am in the situation so I am not sure what to do. The past few yrs I have had a FT job and was married (and filed taxes, etc). Now I am a single parent and wasn't sure how to go about filing taxes when I am being paid in cash. Anyone know how to do this? I do want to have a verifiable income but w/ being paid in cash, I am not sure what forms to use for the IRS, etc.

[Anonymous]

Is your husband paying spousal support? And are you in the same jurisdiction (i.e., both in DC, MD, or VA)? Sounds to me like the $25 or $50 it takes to have your taxes done at H&R Block would be well spent - just to have the opportunity to ask some of these questions of a CPA.

[Anonymous]

Even if your employer doesn't file a W-2 for you, you should report the income that you've received for the year on your 1040EZ. And alimony, if you're receiving it, is taxable. Like the PP said, H&R Block should be able to walk you through it.

[Anonymous]

Great. Thanks for the help. I wish I was receiving alimony! I am just happy that I am getting regular child support.

[Anonymous]

OP, again I am no expert, but if you are paid in cash, just keep track of what you are paid and who is paying it to you. That is what you report on your taxes. If you don't have actual numbers, I think you ca try to reconstruct it. I *think* you should do this to file taxes, which will help you in applying for financial aid.

[Anonymous]

I just re read your question about the forms. If the schools are asking "What is your income" I'd just make your best guesstimate. If they want verification, you can explain the situation. What's the worst that can happen?

[Anonymous]

Anonymous wrote:I am a single mother of a preschool aged girl. I currently work PT as a housecleaner and nanny while we live w/ my parents. This is a temporary situation and I will be returning to work FT once my daughter enters kindergarten. I have applied to a few private schools and am not sure how to report my income (meager as it is) on the financial aid forms since I only work PT and am paid in cash. Should I estimate the amount I am paid weekly (or monthly)? I don't get a W-2 or anything. My ex pays monthly child support. My parents allow us to live w/ them while contributing to household expenses. TIA.

Submit the financial aid forms and state the amount of your monthly child support. Also, for verification submit a copy of your parents housing situation, lease,etc. Explain on your aid form that you live with your parents and plan to return to work FT and give them an idea of the kind of work. The school will likely make up a salary amount for you and award you financial aid based on that.

The problem with estimating the amount of cash you receive each week and listing that on an aid form is that the school will expect you to provide tax forms and attach w-2 or a 1099. If you go this route prepare to have to pay withholding taxes (social security and medicare) and you may also have to pay self-employment taxes, unless you have one employer that you work for. They should already be taking care of this.

[Anonymous]

I will ask my tax preparer about all of this. I have no problem paying taxes on what I currently make but my employer only pays me in cash since it is just a PT job. I keep track of what I make each week so I do know the amount but w/ no W-2, I will just need to ask my tax lady how to go about reporting this income.