<p>Due to unfortunate circumstances, we had no income in FY 2010. We had to dip into our 401K for living expenses. This will be our first time filing for financial aid for two college students.</p>
<p>I am not exactly sure how to report this on the FAFSA or CSS. The FAFSA live help desk was of no use. I know I should (and will) speak to my accountant, but most of you posters seem smarter and savvier!</p>
<p>Any thoughts? Thanks</p>
<p>I thought that money taken from a 401K was considered taxable income (you will be paying taxes on the amount you withdrew in 2010). You should be receiving something from the company holding the 401K.</p>
<p>Until you do your tax forms there isn’t really much that can be done… prob why you think they can’t help you. After your taxes are complete you just list the amounts specified from each line item on your 1040 from AGI, tax liability and whatever else it asks you.</p>
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<p>Perhaps the OP is planning to file the FAFSA using estimates. He/she just wants to know where to put this money from the 401K. </p>
<p>MANY folks absolutely file their FAFSA/Profiles BEFORE they complete their taxes and then amend once they have completed the taxes.</p>
<p>I believe the OP just wants to know WHERE this goes on the FAFSA form. They KNOW the amount!!</p>
<p>On the 1040 you will file for taxes, it will be listed as “Other Income”, so I’d use the other income line for FAFSA
/Profile.</p>
<p>postmup - sorry to hear of your difficult situation.
Maybe you could call the financial aid office of the college (of the 2? that your kids go to) that seems to have the most helpful administrative staff (I know there’s a real difference between my kids’ schools - one is soooooo nice, no matter whom you talk to in any department, and the other has an obvious “we don’t give a crap about you other than getting your money, the rules are the rules, we make no exceptions, tough crap if you’re in a bad situation” attitude.) and ask them if they can advise you where to record 401K w/drawals on the FAFSA, and what you can do to perhaps get a “professional judgment” decision for your unusual situation.</p>
<p>Did you try calling the FAFSA folks? – I have found their phone support to be VERY helpful in the past.</p>
<p>Agree that many accountants seem to know little if anything about financial aid. You’ve come to a good place for help, and the school’s FA office and/or the FAFSA people should be able to give you good advice.</p>
<p>Best of luck to you.</p>
<p>We take distributions from my husband’s IRA, which are taxable and included on the FAFSA and profile as part of our taxable income.</p>
<p>You only report what is requested on the FAFSA. Your distributions are going to be taxed, correct? You would be reporting that amount as part of the AGI. If there are any untaxed distributions, that goes under the untaxed income … you will see it requested in the parent section/untaxed income:
Untaxed portions of IRA distributions from IRS Form 1040– lines [15a minus 15b]
or 1040A– lines [12a minus 12b]. Exclude rollovers.
Untaxed portions of pensions from IRS Form 1040– lines [16a minus 16b] or 1040A – lines [12a minus 12b]. Exclude rollovers. If negative, enter a zero here.</p>
<p>That is what i said! A part of their AGI… lol</p>