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Daniel Price

FAFSA tax issue: Ex claimed child without custody, now I owe $800 - how to report when paying with 2023 refund?

I'm in a mess with my taxes and FAFSA and don't know what to do! My ex opened a custody case last year, and DURING the proceedings (before anything was settled), he went ahead and claimed our daughter on his 2022 taxes even though she lived with me 100% of the time! Because of this, I ended up owing $800 to the IRS for 2022, which I haven't paid yet. Now I'm trying to go back to school this fall and need to complete my FAFSA, but I'm completely stuck on how to handle this tax situation. My plan is to file both my 2022 and 2023 taxes at the same time, and use my 2023 refund to pay off that $800 I owe from 2022. My questions: 1. How do I report this correctly on my FAFSA? 2. Will FAFSA accept that I'm using this year's refund to pay last year's taxes? 3. Do I need to provide additional documentation explaining why I haven't filed 2022 taxes yet? I was thinking about filing a dispute with the IRS since I had full custody and he claimed her without any court order saying he could, but I'm worried about delaying my financial aid. Has anyone dealt with something similar? Any advice would be SO appreciated!!

Olivia Evans

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This happened to my sister! Her ex did the same thing and she had to deal with so much paperwork. I think you need to call the financial aid office at the school you're applying to because they can sometimes make exceptions. Definitely dispute it with the IRS though! When someone claims ur kid wrongfully you should ALWAYS dispute it or they'll keep doing it!!!!

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Daniel Price

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Did your sister end up getting her financial aid processed ok? That's my biggest worry - I can handle the tax stuff eventually but I NEED my classes paid for by fall semester...

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You're dealing with two separate issues here that need different approaches: 1. For your FAFSA: You need to select "Will File" for your 2022 tax return status. The FAFSA for 2025-2026 requires 2023 tax information anyway, but they'll want to know the status of your prior year taxes. You can explain your situation in the comments section of the FAFSA. 2. For the tax issue: File IRS Form 8379 (Injured Spouse Allocation) along with your 2022 return asap. This protects your portion of the refund. Then file Form 8857 (Request for Innocent Spouse Relief) to dispute your ex's improper claim. I recommend getting your 2022 taxes filed immediately, even if you owe. You can set up a payment plan with the IRS for as little as $25/month. This will make your FAFSA processing much smoother.

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Daniel Price

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Thank you so much for this detailed response! I'm confused about the forms though - Form 8379 is for injured spouse situations when you file jointly, but we've been separated for years and file separately. And for Form 8857, doesn't that only apply if we filed jointly? I think I need to file Form 8332 instead to reclaim my dependent? Sorry for all the questions - this is just so overwhelming.

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Aiden Chen

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not sure bout all the tax stuff but i had somthing kinda similar happen with my fasfa last year. ended up having to do income verification and it was a NIGHTMARE. took like 2 months to get my aid. the school financial aid ppl were useless btw

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Daniel Price

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Oh no, that's exactly what I'm afraid of! Did you ever get it resolved? What ended up working for you?

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Zoey Bianchi

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You're actually supposed to use IRS Form 3949-A to report someone who incorrectly claimed your dependent. But don't wait for that to resolve - it can take MONTHS for the IRS to investigate. For FAFSA, you should file your 2022 return NOW showing your child as your dependent. Yes, you'll get a rejection initially because of the duplicate SSN, but then you'll need to paper file with a letter explaining the situation. The FAFSA people will want to see that you at least attempted to file correctly. Also, if the custody case has been resolved and shows you had primary custody in 2022, include that documentation with your FAFSA application. The financial aid office has override capabilities for situations just like this.

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This is right! My ex claimed our son and I had to do exactly this. Just want to add that you should keep checking your FAFSA status online every few days because sometimes they need more info but don't actually contact you about it 🙄

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If you're trying to reach the IRS about this, good luck getting through. I spent WEEKS trying to talk to someone about a similar dependent issue. If you need to actually speak with a FSA agent about your FAFSA situation, I'd recommend using Claimyr (claimyr.com). They got me through to a live FAFSA agent in under 25 minutes after I'd been trying for days on my own. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent was able to add notes to my account about my tax situation, which helped prevent verification delays. Worth it for the time saved alone.

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Daniel Price

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I hadn't heard of this service before! Did they actually help resolve your situation or just get you connected to someone? I'm desperate at this point so I'll try anything.

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They just connected me to an actual FSA agent, but that was the hardest part! Once I had a real person on the phone, I explained my situation and they added notes to my file. When my application hit the verification stage, those notes helped explain the discrepancy. Definitely helped speed things up compared to my friend who had a similar issue but couldn't get through.

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Grace Johnson

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You need to understand how the FAFSA works for this specific situation: The 2025-2026 FAFSA uses your 2023 tax information, not 2022. So your 2022 tax issue technically won't directly impact your FAFSA calculations. However, if you haven't resolved your 2022 taxes, it could trigger a verification flag on your application. For your situation, I recommend: 1. File your 2022 return immediately claiming your child as your dependent (which is factually correct based on your custody situation) 2. Submit documentation to your school's financial aid office showing you had custody in 2022 3. Set up a payment plan with the IRS for the $800 if needed 4. On your FAFSA, accurately report your 2023 tax information 5. In the comments section, briefly explain your 2022 tax situation is under dispute Don't wait for the IRS dispute to be resolved before filing your FAFSA - they operate independently.

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Daniel Price

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Thank you! This makes me feel a lot better. So even if my 2022 return gets initially rejected because of the duplicate SSN claim, I should still submit that documentation to the financial aid office? And they can still process my FAFSA based on my 2023 taxes?

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Grace Johnson

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Exactly. The financial aid office has special authority called "Professional Judgment" that allows them to take your documentation into account. When you submit your FAFSA, immediately contact your school's financial aid office to explain the situation and provide your custody documentation. They deal with unusual circumstances all the time, and this is actually a pretty common issue with separated parents.

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Olivia Evans

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DONT FORGET the new FAFSA for 2025-2026 has that new SAI score instead of EFC too!! The whole system changed and it's SUPER confusing. My cousin's application got all messed up because she didn't realize how different everything is now.

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Daniel Price

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Oh geez, I didn't even think about that! What's different about the SAI compared to the old system? Will that affect how they look at my tax situation?

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The SAI (Student Aid Index) replaced the EFC (Expected Family Contribution), but the change won't affect how they handle tax disputes. The key differences are in how they calculate your aid eligibility - they're less generous with certain income protections and have changed how they assess multiple students in the same household. But for your specific tax issue, the process for resolving it remains the same regardless of EFC or SAI.

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Zoey Bianchi

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The worst part of all this is the timing. If you're trying to start school this fall (2025), you're cutting it close with financial aid. Most schools have priority deadlines for FAFSA in February-March for the following fall semester. Missing those can mean thousands less in institutional aid even if you still qualify for federal aid. If I were you, I'd: 1. File both tax returns ASAP 2. Submit FAFSA immediately after 3. Contact your school's financial aid office directly 4. Ask about any emergency or late consideration policies they have 5. Get documentation of your custody situation ready The tax dispute with your ex is important, but it's a separate battle that can be fought after your financial aid is secured.

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Daniel Price

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You're right about the timing - I'm definitely getting anxious. The school I want to attend has classes starting in August, and their financial aid deadline for priority consideration was March 1st. Do you think I've already missed out on some aid options?

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Zoey Bianchi

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Missing the priority deadline often means you've missed out on school-specific grants and scholarships, but you should still qualify for federal aid like Pell Grants and Direct Loans. Call the school's financial aid office *tomorrow* and ask about late consideration policies - many schools hold back a portion of their funds for special circumstances or have cancellation scholarships that become available in July when other students change their plans.

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