What is Considered Untaxed Income and Benefits? | 11.09.09

Posted in FAFSA By Student Loan Network Staff

The term “untaxed income” means any income excluded from federal income taxation under the IRS code. For an application selected for verification, you must verify up to three specific types of untaxed income and benefits:

* Child support,
* IRA/Keogh deductions, and
* Interest on tax-free bonds.

In addition, you must verify all other untaxed income reported on the U.S. individual income tax return (excluding schedules).  Except for child support, the required items can be verified using the tax return or alternative tax documents. Non-filers should submit a signed statement confirming that they did not file a tax return and listing the amount and specific sources of untaxed income and benefits by name.

You’re not required to verify any untaxed income and benefits received from a federal, state, or local government agency on the basis of a financial need assessment. Also, in-kind income¬† is not reported on the FAFSA and does not have to be verified.

5 Most Recent Student Loans Blog Posts:

The Student Loan Help blog is sponsored in part by:

Leave a Reply

By clicking 'Submit Comment', you agree to the Edvisors Terms of Use and Privacy Policy.