FAFSA, Other Untaxed Income | 05.15.09

Posted in FAFSA By Kristin Morris

What exactly qualifies as Untaxed Income on your FAFSA (Question 95i)?

This question/category is kind of vague. Some examples shown are worker’s comp or disability, but the more illustrative list is the list of what not to include, such as student aid (including scholarships), earned income credit, tax credits for kids, welfare, Social Security, workforce investment, combat pay, flex saving plans, foreign income, and most other tax credits like special fuels. Chances are most people don’t have anything to add here – if you think your parents might, you’ll want to consult a qualified financial planner with them.


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7 Responses to “FAFSA, Other Untaxed Income”

  1. Claudia says on December 26, 2012 at 12:29 pm:

    I have an adult daughter (22) not the student, who lives with us and receives SSI in her name, I am the representative payee for her account and her guardian. Do I need to add the amount that she receives as untaxed income? This is her money, not her parents. Confused? Thanks

    Reply To This Comment
    • Student Loan Guru says on December 26, 2012 at 4:41 pm:

      @Claudia – As part of the College Cost Reduction and Access Act, SSI benefits do not need to be reported on the FAFSA, and do not count against financial aid.

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  2. Teresa says on August 15, 2011 at 3:53 pm:

    Is the monthly payment received from a home that is sold contract for deed considered other untaxed income?? or is it already covered on your Tax Return??

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  3. Andy says on July 8, 2011 at 8:55 pm:

    I was recently selected for verification and was given 2 worksheets, one federal verification worksheet and the other a zero income worksheet that looks like the college typed it up. The zero income worksheet has a section for untaxed income, and there is where my question lies…

    The financial aid person that gave me the worksheet said that since I didn’t work and am living with my spouses parents that I had to put THEIR financial information on the sheet (even though they are not MY parents, I am considered an independent student, and they have NOT given me any money or paid any bills on my behalf), and the amount i receive in food-stamps, etc. I read from the fafsa website that food-stamps are NOT considered untaxed income, and that the only financial information that is required is from MYSELF and MY parents…

    …So who is right…?

    PS. (a little background) I am 24 years old and married, and my spouse and I are living with her parents till i finish school and find a decent job.

    PPS. I’m so confused at the moment…

    Reply To This Comment
    • Student Loan Guru says on July 13, 2011 at 1:17 pm:

      @Andy – Since you are independent, you do not need to subit the information of your wife’s parents. Since your are over 24 and married, you only need to provide the financial info of you and your spouse.

      As far as food stamps go, you do NOT need to report them as untaxed income. In question 94 it asks if you or your family receive federal benefits, and this is where you would select food stamps.

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  4. Yelena says on January 15, 2011 at 7:52 pm:

    I had maternity-disability benefits for 2 months. Is it also intaxed income?

    Reply To This Comment
    • Student Loan Guru says on January 25, 2011 at 9:58 am:

      I believe that most disability benefits are untaxed income, or that at least 85% of it is untaxed – however, we’re not tax experts – so you should probably seek advice from someone who knows for sure. Your tax forms should list forms of taxed and untaxed income. Usually if a type of income is taxed, you receive a form form it, like a 1099.

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