How is the account reported on the FAFSA if the Account Owner is someone other than the student or parent?
When the account owner is neither the parent nor the student, college savings accounts are not required to be reported on the FAFSA as assets, regardless of who owns the account. However, the earnings portion of a withdrawal which is not a qualified withdrawal is federally taxable income to the account owner. In all cases, the principal portion of a withdrawal is not federally taxable income. The earnings portion of the qualified withdrawal will be included in the student’s federal adjusted gross income, which will be reported on the FAFSA for the academic year following the year in which the qualified withdrawal was made. When the account is owned by someone other than the student or a parent, in the year following a qualified withdrawal, the principal portion of the qualified withdrawal is reported on the FAFSA as “Cash received, or any money paid on your behalf, not reported elsewhere on this form,” since this category includes expenditures on the student’s behalf by anyone other th
Related Questions
- If the owner of a college savings account is the parent, is the account reported on the FAFSA as an asset of the parent or the student?
- How is the college savings account reported on the FAFSA if the student is both Account Owner and Designated Beneficiary?
- How is the account reported on the FAFSA if the Account Owner is someone other than the student or parent?
