How much can I earn at my new job without affecting my FAFSA eligibility?
Hey everyone, I just got offered a part-time job at a local coffee shop where I'd work twice a week making $11/hour. This is my first job ever and I'm completely clueless about tax forms. Will I need to fill out a W-2 or a 1099? I've never done either one before. My bigger concern is how this might impact my financial aid. Is there a certain amount I can earn each month that won't mess up my FAFSA eligibility? I really need my financial aid to cover tuition, but I also need some spending money. Don't want to shoot myself in the foot here!
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Rhett Bowman
Congrats on the new job! You won't be filling out either form yourself - your employer will provide you with a W-2 form in January/February showing what you earned in the previous year. A 1099 is for independent contractors, which you won't be as a coffee shop employee. As for FAFSA, there's a student income protection allowance - for the 2025-2026 FAFSA, students can earn up to $7,600 annually without affecting their aid calculation. Anything over that amount is assessed at 50% for your SAI (Student Aid Index) calculation.
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Danielle Campbell
•Omg thank you!! So I don't have to do anything with taxes right now? That's a relief. So if I work 8-10 hours a week at $11/hour, that's like... $440-$550 a month. So that's around $5,280-$6,600 per year, which is under that $7,600 limit? Am I calculating that right?
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Abigail Patel
just remember u WILL have to file taxes next year if u make over $12,950 which u probably won't at that rate. but keep the W2 ur boss gives u in january cuz ull need it for FAFSA!!
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Danielle Campbell
•Thanks! So even if I don't have to file taxes, I still need to keep that W2 form for my FAFSA application next year?
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Daniel White
One important correction - for the 2025-2026 FAFSA, you'll use tax information from 2023, not 2024. So your current job won't affect next year's FAFSA at all if you just started. It would affect the FAFSA for 2026-2027. Also, make sure your employer is withholding taxes correctly. You'll fill out a W-4 form when you start (not a W-2 or 1099) that tells them how much to withhold. The IRS has a tax withholding estimator tool that can help.
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Nolan Carter
•This is good advice!! Also some students dont realize they can claim "exempt" on their W-4 if they didn't owe any taxes last year and don't expect to owe taxes this year. Saves u from having to file a return just to get ur money back!!
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Natalia Stone
I went through this EXACT same thing last year! The financial aid system is SO STUPID about student income. I was working 15 hours a week at $12/hr and it reduced my FAFSA eligibility by THOUSANDS even though I NEEDED that money for books and rent that weren't covered!!! The whole system is designed to keep students poor and dependent on loans. I'm still bitter about it.
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Rhett Bowman
•I understand your frustration. The system isn't perfect, but just to clarify for the OP - if you earn over the protection allowance ($7,600), only 50% of the excess counts against you. So earning an extra $1,000 over the limit would only reduce aid eligibility by $500 in theory.
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Tasia Synder
When I tried calling FAFSA last year about this exact issue they kept me on hold for 2 HOURS and then disconnected me! I finally used Claimyr (claimyr.com) to get through instantly - saved me so much time and stress. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent explained that the FAFSA uses a "look-back" period, so your current job won't affect your aid until the FAFSA that uses THIS tax year's info.
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Danielle Campbell
•I'll check that out if I need to call them! The hold times sound horrible. So basically I shouldn't worry about this job affecting my current financial aid package?
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Selena Bautista
Everyone's giving good advice about the income limits, but don't forget to check if your school has additional limits for institutional aid! My university has a lower threshold for keeping their merit scholarships - only $3,500 annually. Double-check your school's financial aid website or call your aid office to make sure.
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Danielle Campbell
•That's a really good point I hadn't considered! I get a small scholarship from my school too. I'll definitely check with the financial aid office about their specific limits.
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Abigail Patel
ur overthinking this!! just work and make money. only thing that matters is what u made in 2023 for next years fafsa
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Mohamed Anderson
i work full time during summers and take just enough credits to stay enrolled rest of year. fafsa only counts what u make during school year if ur a dependent. or at least thats what my cousin told me. he got like 30k in pell grants doing it this way
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Daniel White
•This is actually incorrect information. FAFSA considers your entire annual income from the tax year, not just earnings during the academic year. And Pell Grants are capped at $7,395 for the 2023-2024 award year, so getting $30k in Pell Grants isn't possible. Please be careful about spreading misinformation about financial aid.
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Danielle Campbell
Thanks everyone for the helpful advice! So it sounds like I don't need to worry about this job affecting my current financial aid since FAFSA uses previous tax years. I'll keep my W-2 for future FAFSA applications and stay under that $7,600 threshold if possible. I'm also going to check with my school's financial aid office about any additional limitations for my institutional scholarships. This has been super helpful!
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