On today’s FAFSA, the parent of record is the parent who provided more financial support to the student in the last 12 months—not necessarily where the student lived. If support is truly equal, use the parent with the greater income/assets. If that parent is remarried, the stepparent’s information is included, too. Federal Student Aid+1
The rule that decides it: the parent of record
For a dependent student, at least one parent is a contributor on the FAFSA. If the parents are divorced or separated and don’t live together, the FAFSA uses the parent who provided the most financial support during the last 12 months (or the most recent year support was provided). If support is exactly equal—or neither parent provided support—use the parent with the greater income and assets. Federal Student Aid+1
If the parents live together (married or unmarried), FAFSA treats them as a two-parent household and includes both parents as contributors. Federal Student Aid
Bottom line: Start with a 12-month support tally. That parent is the FAFSA parent of record unless support is exactly equal (then higher income/assets decide).
Remarriage changes the picture: stepparent counts
If the parent of record is remarried, the stepparent’s information must be included on the FAFSA—regardless of whether the stepparent was married to the parent during the tax year being imported. FAFSA looks at marital status on the day you file. Federal Student Aid+2students.uwrf.edu+2
Quick examples
- You’re the parent of record and married in June 2025 → your spouse’s info is included on a FAFSA you submit after that marriage.
- You’re separated but still living together with the other parent → FAFSA treats you as living together, and both parents’ info is included. Federal Student Aid
Bottom line: If the parent of record is married (not separated) on filing day, stepparent data goes on the form.
Assets: what doesn’t count (and what does)
FAFSA asks for current asset values (a snapshot). Some things are excluded:
Not reported (typically excluded)
- Your primary home’s equity.
- Retirement accounts (401(k), IRA, pension, annuities).
- Life insurance cash value.
- ABLE accounts for someone else.
- 529/education accounts for other children (not the student).
Source: Federal Student Aid “things you need” assets guidance, last checked Nov 6, 2025. Federal Student Aid
Reported (counted as assets)
- Cash/checking/savings (yours today).
- Investments (stocks, bonds, mutual funds, crypto, etc.).
- Real estate except your primary home (e.g., rentals, land).
- Net worth of businesses/income-producing farms (see school guidance for details).
Source: Federal Student Aid assets guidance, last checked Nov 6, 2025. Federal Student Aid
Bottom line: Home equity and retirement accounts are out; cash/investments/extra real estate are in. Keep dates and balances to support your snapshot.
529 plans under the new FAFSA
- Parent-owned or student-owned 529 (when the student is dependent): generally reported as a parent asset on FAFSA.
- Grandparent-owned (or third-party) 529: not reported as an asset by the student or parent; and under the simplified FAFSA, distributions are no longer counted as untaxed student income, removing the old penalty. (School-specific CSS Profile rules can differ.) AP News+1
Bottom line: Parent 529s count as a parent asset; grandparent 529s generally don’t impact FAFSA today. Always check each college’s policy for CSS Profile.
FAFSA vs. CSS Profile (why it matters)
FAFSA determines federal aid; many private colleges also use the CSS Profile, which often collects both parents’ and stepparents’ information—even when FAFSA wouldn’t. Always verify each school’s non-federal aid rules. cssprofile.collegeboard.org
Bottom line: FAFSA might use one parent; the CSS Profile may ask for both households.
Who’s included on the FAFSA? (quick table)
| Family situation | Whose info is included |
|---|---|
| Married parents (not separated), living together | Both parents (contributors). Federal Student Aid |
| Unmarried parents living together | Both parents (treated like two-parent household). Federal Student Aid |
| Divorced/separated, not living together | Parent who provided more financial support in last 12 months; if equal, use parent with greater income/assets. Federal Student Aid+1 |
| Parent of record is remarried | Parent + stepparent (marital status as of filing date). Federal Student Aid+1 |
Three fast scenarios (single-parent lens)
Scenario 1 — You provided more support; you’re remarried.
You’re the parent of record. You married this summer. Your spouse’s info belongs on FAFSA (even if 2024 taxes were single). Federal Student Aid
Bottom line: Include your and stepparent’s info.
Scenario 2 — Ex provided slightly more support (student lives with you).
Despite residency, FAFSA uses the support rule, so your ex is the parent of record. If truly equal support, the higher income/assets parent is used. Federal Student Aid
Bottom line: Support beats address; equal → income/assets tiebreaker.
Scenario 3 — Grandparent 529 is paying the bill.
Grandparent-owned 529 isn’t reported as your asset, and distributions no longer count as student income on FAFSA. (CSS Profile may differ.) AP News
Bottom line: Great news for FAFSA; still review each school’s Profile policy.
Common mistakes & easy fixes
- Using the “lives with me” rule (old thinking).
- Fix: Tally 12 months of support; document how you calculated it. Federal Student Aid
- Forgetting the stepparent.
- Fix: If married (not separated) on filing day, include the spouse of the parent of record. Federal Student Aid
- Reporting excluded assets.
- Fix: Don’t list primary home, retirement, or life insurance values. Do list cash, investments, non-primary real estate. Federal Student Aid
- Treating grandparent 529 like student income.
- Fix: Under the new FAFSA, distributions from grandparent-owned plans are not counted as student income. AP News
- Confusing FAFSA with CSS Profile.
- Fix: Check each school’s Profile instructions—many require both parents/stepparents. cssprofile.collegeboard.org
Bottom line: Support rule, stepparent inclusion, and asset exclusions are where most errors happen.
What to do next (5-step plan)
- Identify the parent of record using a 12-month support tally; if equal, use the parent with greater income/assets. Federal Student Aid
- Set your marital status accurately as of filing day; invite a spouse (stepparent) as required. Federal Student Aid
- Gather current asset balances—include cash/investments; exclude primary home/retirement. Federal Student Aid
- If 529s are in play, note who owns them; parent-owned is a parent asset; grandparent-owned is generally ignored by FAFSA today. AP News
- For schools using CSS Profile, check their noncustodial/stepparent requirements early. cssprofile.collegeboard.org
Disclaimer
This article is general information, not financial or legal advice. Policies can change, and colleges may have their own rules. Verify with studentaid.gov and each school’s financial aid office before filing.
Sources
- Federal Student Aid (studentaid.gov) — Reporting Parent Information; contributor rules; marital status; asset guidance; equal-support tiebreaker (FAFSA PDFs). Last checked: Nov 6, 2025. Federal Student Aid+3Federal Student Aid+3Federal Student Aid+3
- UW–River Falls / USU — summaries of parent of record and stepparent inclusion. Last checked: Nov 6, 2025. students.uwrf.edu+1
- Associated Press explainer (529 & new FAFSA) — grandparent 529 now not counted. Last checked: Nov 6, 2025. AP News
- CSS Profile (College Board/MIT FA) — non-federal aid may require both parents/stepparents. Last checked: Nov 6, 2025. cssprofile.collegeboard.org
FAQ section
1) Which parent’s income goes on FAFSA after a divorce?
The parent who provided more financial support in the last 12 months. If support is equal (or neither supported), use the parent with greater income/assets. Federal Student Aid+1
2) Does a stepparent’s income count on the FAFSA?
Yes—if the parent of record is married (not separated) on the day you file, the stepparent’s info is included. Federal Student Aid
3) My child lives with me, but my ex paid more—whose info goes in?
FAFSA uses the support rule, not residency. Your ex would be the parent of record this year. Federal Student Aid
4) Which assets don’t get reported on FAFSA?
Typically primary home, retirement accounts, and life insurance values are excluded; cash/investments/extra real estate are included. Federal Student Aid
5) How are 529 plans treated now?
Parent-owned 529s are a parent asset. Grandparent-owned 529s aren’t reported and distributions no longer count as the student’s untaxed income on FAFSA. (CSS Profile may differ.) AP News
6) Do both parents report if we’re unmarried but live together?
Yes—FAFSA treats you as a two-parent household and includes both. Federal Student Aid
7) Does the CSS Profile use the same rules?
Often stricter—many schools require both parents/stepparents. Check each college’s policy. cssprofile.collegeboard.org