I am married with a kid as well, we own a house, my husband makes decent money (we are comfortable) Last year I did ok money wise (not as much as my husband but our tax return put us squarely in middle to upper middle class)
No where did I provide my parents tax return information. I know there is a section on the FAFSA asking for it but I didn't fill it out. I did with mine and my husbands income (mine which will drop of course once I start school next week since I will no longer be working full time) Of course, I still have a mortgage, 2 car payments, child care, other bills, food, etc.
My EFC was fairly high, I though. What, they don't think I need to eat and feed my family too?
But whatever. I got the max federal loans and filled the rest with private loans.