<p>I'm going to be a sophomore next year and I'm reapplying for FASFA. I remember last year I put 0 as AGI and 0 for anything when it asked for Student's income because I didn't work that year. </p>
<p>But now that I'm going to be a sophomore, FASFA asked for "Student grant and scholarship aid reported to the IRS in your (and your spouse's) adjusted gross income. Includes AmeriCorps benefits (awards, living allowances, and interest accrual payments), as well as grant and scholarship portions of fellowships and assistantships" </p>
<p>I'm a bit confused on what to do here. I didn't work this year either so I didn't file taxes, but I did receive some grants and loans through financial aid. I received the 1098T form from my university, am I suppose to put the amount that that paper said on the FASFA even if I'm not filing a tax return?</p>
<p>Did the amount of your scholarships/grants exceed the amount of tuition + mandatory fees + required books and supplies? </p>
<p>If so, that amount of your scholarships/grants are taxable income to you and you may have to file a tax return depending on how much they exceeded those expenses. </p>
<p>If not, then you didn’t report any scholarship/grant amounts to the IRS and you would put 0 for that question.</p>
<p>The loans are irrelevant for this.</p>
<p>I received a mixture of loans and grants and the 1098T doesn’t seem to differentiate the two. I did receive more money than what the school charged me (Box 5 was greater than box 2). Basically the school charged 16,000, while I received 18,000. My parent don’t really know the rules about filing taxes so they have a tax preparer to do it for them. I gave the 1098T to my parent and they gave it to the person who does our taxes, and he said I didn’t need to file taxes. </p>
<p>do I still put 0?</p>
<p>A tax dependent doesn’t have to file a tax return unless income exceeds $5950. Since you didn’t have other income it would appear you don’t need to file so you would put 0 for that question.</p>
<p>Alright Thank You!</p>
<p>“A tax dependent doesn’t have to file a tax return unless income exceeds $5950. Since you didn’t have other income it would appear you don’t need to file so you would put 0 for that question.”</p>
<p>Just to clarify…$5950 is the standard deduction for someone filing single. Someone can correct me if I’m wrong, but aren’t the standard deduction amounts for dependents different? Earned income + $300?</p>
<p>Yes, I was presuming the OP didn’t have $300 of unearned income. Most students don’t in these days of low interest rates. Students who have savings invested aggresively could depending on assets. The OPs tax preparer said he didn’t have to file so it was just a general statement explaining it to him.</p>
<p>Taxable scholarships/grants are considered earned income by the IRS. State may be different, mine considers them unearned income.</p>
<p>$950 of unearned income by itself requires filing for a dependent. And even more you can get into the kiddie tax.</p>
<p>It doesn’t matter if the student is paying taxes on grants/scholarships or not. The total for the previous academic year (I’m pretty sure that is how it is worded…so it would be for the 2012-2013 school year) must be listed on the FAFSA. It probably is NOT what is shown on the 1098t for 2012 as that would not be the amount for the full academic year.</p>
<p>Check the wording of that question. Just an FYI, scholarship money you receive is NOT included in the FAFSA EFC calculation for the next year. Neither is money earned through work study.</p>
<p>No, it is only taxable scholarships/grants that is reported to the IRS on line 7 that is included for that question(actually 43D). If a student doesn’t file and therefore doesn’t have scholarships/grants included in AGI, they wouldn’t put an amount for 43D. They should still include any wage and interest income on fafsa.</p>
<p>And no, it is by tax year, that’s how you report taxes, by tax year.</p>
<p>Every year, because my son has to report taxable scholarships on his return and puts an amount for question 43D, we get a form from his school to make sure we understand 43D correctly. It explains not all scholarship/grant amounts should go in that question, only amounts reported to the IRS on line 7(I think it’s line 1 on 1040EZ). We have to confirm the amount we put for that question, sign it and return it to the school because that amount gets subtracted from his AGI in the fafsa formula.</p>
<p>I now see the original query asked about scholarships and grants included in your AGI. Sorry…I stand corrected. </p>
<p>Annoyingdad, my guess (help me here if I am wrong) is that this question will help the FAFSA calculation by knowing how much of that AGI was due to taxable amounts of scholarships/grants. Like I said earlier, scholarships/grants/work study are not considered as income when recalculating the EFC for subsequent years.</p>
<p>Correct, 43D is subtracted from the student’s AGI before the student’s contribution to EFC is calculated.</p>
<p>I received a mixture of loans and grants and the 1098T doesn’t seem to differentiate the two.</p>
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<p>Just a point of clarification here: The 1098-T does not include any loan amounts. It only lists grants and scholarships.</p>