Just wanted to add my experience as someone who went through this exact same situation! My ex claimed our son on taxes but I was the custodial parent for FAFSA. The key thing I learned is that the IRS and Department of Education operate completely independently - they don't cross-reference who filed what. What really helped me was creating a simple spreadsheet to track everything: scholarship amounts, what they covered (tuition vs room/board), and copies of all the 1098-T forms. This way if there are ever any questions down the road, you have everything documented. Also worth noting - if your daughter ends up with a summer job or internship income on top of any taxable scholarship money, she might hit the filing threshold even if the scholarships alone wouldn't require it. Just something to keep in mind for future planning!

I went through this exact same situation last year with my daughter! The confusion is totally understandable - having different parents for FAFSA vs tax purposes makes everything more complicated. Just to reinforce what others have said: you're in the clear as far as YOUR taxes go. The scholarships and Pell Grants don't get reported on your return at all, regardless of who claims her as a dependent. One thing that really helped me was sitting down with my daughter to go through her 1098-T form together when it arrived from her college. It shows exactly what was paid for tuition/fees vs what went toward room and board. The tuition portion is tax-free, but if any scholarship money went toward living expenses, that portion might be taxable income for her (though as others mentioned, most students still don't owe taxes because their total income is usually below the standard deduction). Your ex is actually right that you don't need to do anything on your end - he just doesn't understand that it's because of how scholarship taxation works, not because he claims her! Keep doing what you're doing with the FAFSA as the custodial parent.

I just wanted to add a perspective from someone who recently went through this process with my daughter. We were in a similar situation where her father refused to provide information, but I want to emphasize that persistence really pays off. After reading through all these helpful responses, I think the approach of having the guidance counselor speak with your sister is excellent advice. One thing that worked for us was creating a simple one-page document explaining exactly what FAFSA information is used for versus what creates actual financial obligations. We included screenshots from the official FAFSA website showing that providing tax information is just for aid calculations. Sometimes seeing it in black and white from the official source helps reluctant parents understand. Also, if your nephew is applying to any state schools, make sure to check if your state has additional grant programs that might have different dependency requirements than federal aid. Some state programs are more flexible. The financial aid landscape can be really overwhelming, but don't let that discourage you from advocating for your nephew. Having a supportive family member like you making sure he doesn't fall through the cracks is invaluable. Keep us updated on how it goes!

I've been following this thread and wanted to share something that might help with your sister's reluctance. When I was working with families on FAFSA issues, I found that many parents worry about privacy and what happens to their tax information once it's submitted. You might want to let her know that the IRS Data Retrieval Tool actually imports her tax info directly from the IRS into the FAFSA, so she doesn't have to manually enter sensitive details, and the information is only used for federal aid calculations - it's not shared with colleges for any other purpose. Also, consider showing her the actual financial impact with real numbers. If your nephew potentially qualifies for a Pell Grant (which could be up to $7,395 for 2025-26), plus state grants, that's real money that could reduce his loan burden significantly. Sometimes parents don't realize they're essentially costing their child thousands of dollars by withholding tax information that doesn't commit them to paying anything. If she's still resistant, document her specific reasons in writing. That documentation could actually be helpful for the dependency override process, especially if you can show that her refusal is causing genuine financial hardship for your nephew's education.

As a current college student who's been through this process multiple times, I can definitely relate to your confusion! The 50% support rule is really the key here, and from what you've described, it sounds like your sisters are financially independent even though they live at home. One thing that helped me when I was unsure was to think about it this way: if your sisters moved out tomorrow, would your parents need to send them money each month to cover their living expenses? If the answer is no (which it sounds like it is since they have full-time jobs), then they're likely supporting themselves and shouldn't be counted in your household size. I know it feels counterintuitive to exclude people who physically live in your house, but FAFSA is really looking at financial dependency, not just living arrangements. You're making the right call by being careful about this - verification is no joke and can really delay your financial aid when you need it most. Good luck with your FAFSA!

I'm new to this community but dealing with the same FAFSA headache right now! Reading through all these responses has been incredibly helpful. I have a similar situation with my 25-year-old brother who lives at home but works full-time as a nurse. Based on everyone's advice here, I think the key takeaway is that living arrangement ≠ financial dependency. Even though my brother doesn't pay rent, he covers his own car payment, insurance, student loans from his nursing degree, phone bill, food, clothes, and entertainment. When I actually sit down and calculate it like @Ella Knight suggested, my parents are probably only providing maybe 25-30% of his total support through housing and utilities. It's frustrating that FAFSA doesn't give clearer examples for these gray area situations, but I feel much more confident now about excluding him from our household size. Better to be accurate and conservative than deal with verification nightmares later! Thanks to everyone who shared their experiences - this thread should be pinned for other students dealing with the same confusion.

Just wanted to add my experience as someone who went through this process recently! The Parent PLUS application really is separate from FAFSA - took us by surprise too. One thing that helped us was that my school's financial aid portal actually had a direct link to the Parent PLUS application with our school code already filled in, which saved some time. Also, my mom was worried about the credit check but it turned out to be pretty straightforward - they mainly just check for recent defaults or bankruptcies, not your overall credit score. The whole process from application to funds being sent to the school took about 2-3 weeks for us. Definitely don't wait until the last minute though! Good luck with everything!

Hey Sienna! I just went through this exact same confusion last year with my daughter's financial aid. Everyone here is absolutely right - the FAFSA is just step one, and your parents definitely need to do a separate Parent PLUS loan application. One thing I'd add is to make sure your mom has her own FSA ID set up if she doesn't already (sounds like she might from helping with the original FAFSA). She'll need that to log into studentaid.gov for the PLUS application. Also, when she does apply, she can choose to borrow less than the full amount shown on your award letter if you don't need it all. We made that mistake the first year and borrowed more than we actually needed. The application will show the maximum she can borrow, but she can select any amount up to that limit. Hope this helps and good luck with everything! The system is definitely confusing but once you get through it the first time, it makes more sense.

Welcome to the community! As another newcomer here, I really appreciate how helpful everyone has been in this thread. I'm a current college sophomore who actually received FSEOG my freshman year but didn't get it this year, so I can share that perspective too. What I learned is that even if you get it one year, the funding really can disappear - my school told me they had about 40% less FSEOG funding allocated this year compared to last year. One thing I wish I had known earlier is to ask your financial aid office about the timeline for when they typically exhaust their FSEOG funds each academic year. My school usually runs out by mid-February, so if you're a late FAFSA filer or transfer student starting in spring, your chances are pretty slim. Also, if anyone is considering community college first then transferring, keep in mind that community colleges often have much smaller FSEOG allocations than four-year schools, so factor that into your planning. This thread has been super informative - thanks everyone for sharing your experiences!

As a newcomer to this community, I'm really grateful for all the detailed information shared in this thread! I'm a current college junior who just learned about FSEOG from a friend, and honestly I had no idea it even existed until now. After reading through everyone's experiences, I'm realizing I might have missed out on potential funding for the past two years just because I didn't know to ask about it. I submitted my FAFSA early each year but never followed up with my financial aid office about campus-based aid programs beyond what automatically appeared in my aid package. This is making me wonder what other programs I might not know about! I'm definitely going to reach out to my school's financial aid office this week to see if I'm eligible for FSEOG for my senior year and ask about any other campus-based aid programs they offer. Thank you all for being so generous with sharing your knowledge - it's clear this community is an amazing resource for navigating the confusing world of financial aid!