FAFSA custody confusion - I'm custodial parent but ex claimed on 2023 taxes

Thank you! That's what I thought, but I was worried because all the documentation seems focused on who claimed the child on taxes. Do you know if I'll need to provide any additional documentation to prove I'm the custodial parent if they question it?

This is actually a common misconception. FAFSA determines the custodial parent based on who the student lived with MORE during the 12 months prior to filing the FAFSA, not based on tax returns. So count the exact nights for the past 12 months, not the calendar year. Also, if it's exactly equal, then the parent who provided more financial support becomes the custodial parent for FAFSA purposes. These are different rules than custody for legal or tax purposes.

not true they totally check tax returns my sister got flagged for verification because of this exact issue

Verification is random in most cases. While they may ask for documentation during verification, they don't systematically cross-check every FAFSA against tax returns specifically for custody purposes. If your sister was selected for verification, that doesn't mean everyone will be. About 30% of FAFSA applications get verification requests for various reasons.

DO NOT update your tax returns to try to match the FAFSA! That would create more problems than it solves. Your tax filing and FAFSA filing can be different - they're separate systems with different rules. The IRS and Department of Education do share some data, but they're looking for major discrepancies in income reporting, not dependency status differences. Simply report yourself as the custodial parent on the FAFSA since you have your daughter more nights. If you're selected for verification (which is somewhat random), you'll need to provide documentation showing your custody arrangement or a signed statement explaining the situation. Keep that calendar documentation handy just in case.

While verification does happen, it's not because the systems automatically flag custodial parent differences. Verification is partly random and partly based on other factors. The IRS Data Retrieval Tool does transfer tax information, but it doesn't automatically trigger verification if dependency claiming differs from custodial status.

well maybe i just got unlucky but they definitely made us explain why i was listed as custodial parent when my ex claimed our son on taxes. just warning OP it CAN happen.

Thanks for the recommendation! I've been trying to get through to someone at the FSA to confirm this information but the wait times are ridiculous. I'll check this out if I need to talk to a real person.

does this actually work?? i hate waiting on government phone lines

Yes, it worked for me. I was skeptical too but the FAFSA phone lines are so backed up right now with the new system and all the problems. The FSA agent I spoke to confirmed everything about the custody question and cleared up my confusion.

Please do NOT do this. This is considered fraud and can result in major penalties, including having to repay all financial aid, fines, and even potential criminal charges. The Department of Education takes misrepresentation on the FAFSA very seriously.

omg i was just joking!! definitely don't commit fraud lol

This is really helpful! I wasn't aware of these specific guidelines in the new FAFSA. Sounds like I'm definitely on the right track listing myself as the custodial parent. Thank you for the detailed explanation!

That's good to know. I definitely have my 2023 tax information ready and I understand how to use the IRS Data Retrieval Tool. I just wanted to be sure I was correctly identifying myself as the custodial parent since it wasn't clear from the instructions how that intersects with tax dependency.

That's really smart advice! I'm going to put together a folder with all of that documentation just in case. Better to be prepared than panic later.