What is the difference between cash support and in-kind support?
Cash support is given either in the form of money or money paid on your (the students) behalf. You must report such cash received as untaxed income. For example if a friend or relative gives you grocery money, it must be reported as untaxed income on Worksheet B. If the friend or relative pays your electric bill or part of your rent, you must also report those payments.
Cash support is support given to you in the form of money or money that is paid on your (the student’s) behalf. You must report any cash received or paid on your behalf as untaxed income. In-kind support is such things as free food or housing that you may receive in exchange for work or services. This type of assistance is not reported as income or untaxed income on the FAFSA. However, you must report the value of housing a family receives when it is considered compensation for a job on Worksheet B. The most common examples of this is free housing or a housing allowance that is provided to members of the military or the clergy.
