My wife needs financial aid?

She can go into the finanacial aid office for facts.

But I believe- she is married when she fills out the FAFSA form it will be with her husband and her's income taxes - not her parents. Once married her parents can not claim her on their taxes.

Dependency on the FAFSA (i.e. for financial aid purposes) and dependency on the tax return are two different things, and they each have their own rules. It is entirely possible to be claimed as a dependent on another person's tax return, but still be independent for financial aid purposes. For the FAFSA, dependency is determined by a series of questions on the application, not by whose tax return she is claimed on. One of those questions is whether the student is married. If she can answer yes to that question, she is considered independent for financial aid purposes and does not include parent information on the application, even if she is claimed as a dependent on her parents' tax return. On the FAFSA, she should report the income for herself and her spouse. However, she may also have to include support that her parents provide in the untaxed income section. She would not have to report the value of "in kind" support, such as her parents providing a place to live or food, but she does have to report any money that they give her, or any bills that are in her name that they pay. In terms of the tax return, there are certain circumstances under which parents can claim an adult child as a dependent on their tax return, but if she is married and filing a joint tax return with you, then they cannot claim her even if they are providing support for her. If they were paying for college, then she would have to report that as untaxed income, but since her spouse is paying the college bill, the income that is being used to pay for college is already included in the AGI that is reported on the FAFSA, so it does not have to be reported separately. The FAFSA asks for tax information as a way of verifying income, but who claims a student on their return has no bearing on whether the student is considered dependent or independent for financial aid purposes.