Supplemental Security Income (SSI) FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

SSI is a Social Security-based program that supplies income benefits to children in low-income situations and qualified disabled of any age. The program pays out normal Social Security benefits early, allowing these individuals to continue paying increased expenses and participate in a full, happy life.

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Answer the questions in this step to determine if you will need to provide parental information. Once you answer “Yes” to any of the questions in this step, skip Step Four and go to Step Five on page 8 FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

You can go to college at any age, and colleges require the FAFSA. Since the FAFSA is 50% parent data, this…presents a problem. If you do not need parent information, you are in luck — you do not have to provide it! If every answer is “no,” too bad — mom and dad need to get their files out.

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Parents’ 2012 Additional Financial Information (Enter the amounts for your parent[s].) FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

Line 91, like 43, is a group question: the following 6 subquestions are the place where you put the answers. It seems convoluted (why not just make them six unique questions), but roll with it.

91a — Education credits

91b — Child support paid

91c — Need-based employment

91d — Grants and scholarships

91e — Combat pay

91f — Coop earnings

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Other untaxed income not reported in items 92a through 92h, such as workers’ compensation, disability, etc. Also include the firsttime homebuyer tax credit from IRS Form 1040—line 67. Don’t include student aid, earned income credit, additional child tax credit, welfare payments, untaxed Social Security benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, combat pay, benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion or credit for federal tax on special fuels FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

Whew! This is needlessly long, so let’s get to the meat!

You already did the parts starting at “Don’t” on question 91. So ignore that.

The key part here is worker’s compensation and disability, among other sources of untaxed income. The IRS and its forms do not care about these. The FAFSA (erroneously) does. Track these down and ink in the full amounts.

If you bought a home for the first time and qualified for the credit, you should have filled this out on your 1040 — but shocker! The FAFSA line is wrong! Here’s the correction:

1040

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Other untaxed income not reported in items 44a through 44h, such as workers’ compensation, disability, etc. Also include the first-time homebuyer tax credit from IRS Form 1040—line 67. Don’t include student aid, earned income credit, additional child tax credit, welfare payments, untaxed Social Security benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, combat pay, benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion or credit for federal tax on special fuels FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

Whew! This is needlessly long, so let’s get to the meat!

You already did the parts starting at “Don’t” on question 43. So ignore that.

The key part here is worker’s compensation and disability, among other sources of untaxed income. The IRS and its forms do not care about these. The FAFSA (erroneously) does. Track these down and ink in the full amounts.

If you bought a home for the first time and qualified for the credit, you should have filled this out on your 1040 — but shocker! The FAFSA line is wrong! Here’s the correction:

1040

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Miguel
April 8th, 2014

It is not erroneous for the FAFSA to ask for the student and parent to report income that is not taxed. It is the prerogative of the Department of Education to determine for itself what sources of income, taxed or otherwise, should be considered when determining the student’s ability to contribute to the cost of his or her education.

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Veterans noneducation benefits, such as Disability, Death Pension, or Dependency & Indemnity Compensation (DIC) and/or VA Educational Work-Study allowances FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

If you served in the military and retired, you likely received a pension of some kind. This is not it. Plus, you’re likely too old to still be on their taxes. Pshhhh….

These are special benefits given in certain situations, such as the death or severe injury of someone serving. Since these events shatter the home life of any soldier, they are awarded to the family to aid in their recovery. You should know if you received these. If not, contact Veteran’s Affairs.

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Veterans noneducation benefits, such as Disability, Death Pension, or Dependency & Indemnity Compensation (DIC) and/or VA
Educational Work-Study allowances
FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

If your parent or parents served in the military, they likely received a pension of some kind. This is not it.

These are special benefits given in certain situations, such as the death or severe injury of someone serving. Since these events shatter the home life of any soldier, they are awarded to the family to aid in their recovery. You should know if you received these. If not, contact Veteran’s Affairs.

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Child support received for any of your parents’ children. Don’t include foster care or adoption payments FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

If at any point you received child support (again, this is something you probably know off hand), just add it up. Make sure this is documented — the last thing you want is an off-the-record cash payment ending up on a form.

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Codes D, E, F, G, H and S FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

Another IRS meta-layer: codes for codes! They look tricky, but do not worry — you do not have to know what each code means, but only what letter is typed/written in. You can find that here, next to the tinnnyyyy word that says “Code”:

If you want to be all exact and actually know what these are (you should), track them down here.

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Payments to tax-deferred pension and savings plans (paid directly or withheld from earnings), including, but not limited to, amounts reported on the W-2 forms in Boxes 12a through 12d FAFSA, Free Application for Federal Student Aid by Federal Student Aid (Ft. Fred Tugas)

In most cases, if your work set up a retirement plan for you, you either automatically deduct a certain portion of your paycheck or have your employer fund the account with some of your salary. If you do this yourself, you are responsible for the totals.

Simply pull out the W-2 you used on your taxes (you did do them already, right?) and pull a few numbers: everything in boxes 12a-12b, as long as they are code D, E, F, G, H, or S.

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