What is untaxed income for financial aid purposes?
The FAFSA will ask for specific types of untaxed income. Untaxed income is income received that is not subject to U.S. income taxes and is required to be reported on the FAFSA. It includes Social Security and veterans benefits, welfare, child support, untaxed pensions, military subsistence allowance, etc. Even if you filed a tax return, complete the untaxed income worksheet.
The FAFSA asks for specific types of untaxed income. Untaxed income is income received that is not subject to U.S. income taxes, but is required to be reported on the FAFSA. It includes Social Security and veterans benefits, welfare, child support, pensions, military subsistence allowances, IRAs, KEOGHs, TSAs, etc. You should check the untaxed income worksheet in the FAFSA application to determine if there is untaxed income that needs to be reported. Read the FAFSA instructions to help guide you.
• A few questions on the FAFSA ask for “other untaxed” income described in worksheets A and B on page 8. Untaxed income is income received that is not subject to U.S. income taxes and is required to be reported on the FAFSA. It includes Social Security and veterans benefits, welfare, child support, pensions, military subsistence allowance, etc. Even if you filed a tax return last year, complete the untaxed income worksheets A and B.
