<p>My friend is a retired school teacher in New Jersey and receives a monthly pension payment from the State of NJ. Does she include that as income on the Fafsa or somewhere on the Fafsa??</p>
<p>I assume she reports her pension payments on her 1040, correct? If so, that is where they are reported. If that is her only income, she reports 0 for income from work. The pension payment is picked up in the AGI that is reported.</p>