<p>Our only "income" is untaxed disability retirement income. Because it is untaxed we do not file income taxes. How do we report this income on the FAFSA?</p>
<p>Try asking this in the financial aid forum.</p>
<p>I have to ask: do you work for the LIRR?</p>
Both Long Island Rail Road and MTA pensions are fully taxed by the Feds (after being adjusted by employee contributions), though not taxed by New York State. If the retiree receives an Occupational Disability annuity from the Federal Railroad Retirement Board, that is also taxed by the Feds after the annuitant’s contributions are omitted.
So it appears that all this taxable income must be shown on the FAFSA.
If the annuitant received a full disability from the RRB, receives “early Medicare” of has reached “full retirement age,” (generally around 65), then a portion of his Tier I earnings, that which is equivalent Social Security, would be non taxable and not reportable on FAFSA.
Retirees and Annuitants do well with NY TAP, as their pension benefits are not taxable by the State of New York.
Of course, if you have substantially lower income this year because of a disability, or because the RRB discontinued your annuity you should speak with the Financial Aid folks at the college.
All retired LIRR and MTA employees would be filing taxes because of their taxable income.
The OP asked this three years ago and I think has found the answer by now. Closing.