Whats the difference between cash support and in-kind support?
• A. Cash support is support given either in the form of money or money that is paid on your (the student’s) behalf. You must report cash support as untaxed income. Thus, 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. • Examples of in-kind support are free food or housing that a family receives, usually in exchange for work or services. You usually don’t report such support.
• Cash support is support given either in the form of money or money that is paid on your (the student’s) behalf. You must report cash support as untaxed income. • 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. • Examples of in-kind support are free food or housing that a family receives, usually in exchange for work or services. You usually don’t report such support. • The application requires you, however, to report the value of housing a family receives as compensation for a job on Worksheet B. The most common examples are free housing or a housing allowance provided to military personnel or clergy, which is required to be reported on Worksheet B.
Cash support is support given either in the form of money or money that is paid on your (the student’s) behalf. You must report cash support as untaxed income. Thus, 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. Examples of in-kind support are free food or housing that a family receives, usually in exchange for work or services. You usually don’t report such support. However, the application does require you to report the value of housing a family receives as compensation for a job on Worksheet B. The most common example is free housing or a housing allowance provided to military personnel or members of the clergy, which is required to be reported on Worksheet B.
Cash support is support given either in the form of money or money that is paid on your (the student’s) behalf. You must report cash support as untaxed income. Thus, if a friend or relative gives you grocery money, it must be reported as untaxed income. If the friend or relative pays your electric bill or part of your rent, you must also report those payments. Examples of in-kind support are free food or housing that a family receives, usually in exchange for work or services. You usually don’t report such support. However, the application does require you to report the value of housing a family receives as compensation for a job. The most common example is free housing or a housing allowance provided to military personnel or clergy, which is required to be reported.
A. Cash support is either a cash gift or money paid on the student’s behalf. Cash support is reported as untaxed income. For example, if a relative gives you grocery money or pays your rent, it must be reported as untaxed income in section 5. In-kind support would be free food or housing that a student receives, usually in exchange for work or services. You usually don’t report in-kind support. However, if you or your family receives free housing as compensation for a job, the FAFSA does require that you report the value of that housing in section 4 and 5.
