Applying for In State Tuition in Ohio

[aml868]

Hey guys,

I just decided to attend NEOMED (Ohio) after getting off of a waitlist. Me and my family want me to avoid as much debt as possible, however the out of state tuition is 88k. If I apply and get accepted for instate, it goes down to 46k a year. My dad wants to help with the burden of that 88k, but we don’t want my application for instate tuition being disqualified. Part of applying for instate tuition is being an independent for 12 months that does not receive financial help from anyone outside of Ohio. This includes my dad not paying the school directly towards my tuition according to the instate tuition application requirements. Is there anything that can be done in this situation to help relieve the 88k? My dad is offering to gift me 16k (as much as he can give me without getting taxed) and/or put 16k in my 529 that is in my name before school starts(same tax situation I believe). I am not sure if this is still breaking rules doing this before my classes start. As you can tell I am lost in regards to my financial situation. I still have my acceptance at NOVA-DO where I wouldn’t have to take loans out for tuition since I could receive help as an in state student. Has anyone been in this situation that could give me some guidance? My boyfriend is moving with me and will try to help with COL. I know they have these rules because they don’t want someone to benefit from in state tuition and just leave after, but anything to put myself in less debt would really be helpful and this is all new to me. I will be calling financial aid services again. Thank you for reading.


I can post a link to guidelines. Besides NEOMED, almost every medical school in Ohio has an option to apply for in state residency.

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[aml868]

Just because your dad gives you $16,000 a year allowable by IRS rules, it is still considered income to you and therefore must be reported.

Makes sense, what if it is just put in the 529 before school starts? I don’t know how this all works with filing my taxes… does this mean nothing can be done since everything will show up when I file my taxes?

 

[snacktimeat12]

May be Dad moving to Ohio for his own purpose and changing his residency and you continue to be a dependent student. I believe that is an option to gain instate resident tuition after a year.

 

[aml868]

May be Dad moving to Ohio for his own purpose and changing his residency and you continue to be a dependent student. I believe that is an option to gain instate resident tuition after a year.

He just bought a really nice but expensive condo in California right next to his job only about a year ago 😭. He already pays taxes for that and a house in jacksonville where my grandparents are staying.

 

[aml868]

What if I just front with loans for the first year, and after I get in state I start receiving more aid? I forgot to ask if I have to apply for in state every year

 

[Mr.Smile12]

Work with financial aid.
Consider HPSP or NHSC or other loan repayment options.

 

[Catalystik]

Just because your dad gives you $16,000 a year allowable by IRS rules, it is still considered income to you and therefore must be reported.

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Do You Pay Taxes on Gifts From Parents? - SmartAsset Jan 18, 2022The IRS basically ignores gifts that don't breach the annual gift tax exclusion. For tax year 2022, the annual gift tax exclusion stands at $16,000 ($32,000 for joint filers). This is up from $15,000 in 2021 ($30,000 for joint filers). This means your parent could give $16,000 to you and any other person in 2022 without triggering a tax.

That said, your other parent can also gift you $16K. If you were married, your spouse could receive the same amounts from each of your parents.

 

[aml868]

Thanks guys, it seems that I should just not receive any aid from my parents until after my application for in state is approved. When I asked financial aid they said they will be looking for any large sums of money from out of state soon before starting medical school as well. Includes 529 and gifts

 

[voxveritatisetlucis]

Why not take out the loan, put the 88k from your dad into $VTIP or another inflation protected bond ETF. The current yield on the Ishares $TIP ETF is about 6.5 whereas the federal loan rate is about 6. Take the loan, apply for is tuition, then pay off the loan after you are approved with the now appreciated 88k from your dad

*not financial advice

Also you have probably want to make sure it’s legal via a lawyer

 

[KnightDoc]

Just because your dad gives you $16,000 a year allowable by IRS rules, it is still considered income to you and therefore must be reported.

Gifts are NOT income to the recipient. That is the very reason they are subject to a gift tax, payable by the payor. Anything else would be double taxation.

That said, OP would definitely be cheating by claiming they are independent while receiving financial support, gift or otherwise, from parents.