Are Student's Untaxed Social Security Benefits counted as income or assets

<p>I know untaxed social security benefits (the student's) are not listed on FAFSA or Profile, but the school's own verification form specifically asks about untaxed social security benefits for the student, so I know we'll need to list them. Son received benefits all of 2010 and will receive benefits through May of 2011, then upon high school graduation they will cease. My question is; are these counted as income, therefore enjoying the income protection limit for the student or are they counted as assets? </p>

<p>None of the benefits have been saved, they have all been spent to benefit the student per social security regs, so I'll to come up w/whatever portion the school wants to assign as student contribution, but I know that will vary depending on whether they are counted as assets or income. Anyone know? </p>

<p>Thanks</p>

<p>Scribbulus, when it comes to schools using their own methodology, they can do what they danged well please. My guess would be that is is student income and any assets sitting in the account on the day of filling out the form are counted as assets too, giving it a double whammy at the high student rates. It really does not behoove a student to have much in assets in his own name.</p>

<p>Our non tax filer forms ask for the untaxed portion of social security benefits, but we do NOT do anything with them in terms of EFC. The question is asked simply to help us document the family’s sources of income. Sometimes there is no income at all on the FAFSA, so asking everyone this question on the non filer form helps us understand how a family makes ends meet. There may be schools that do expect that this money is available & they may use it when deciding how to allocate institutional funds.</p>