Bonus?

Paying for College
1

<p>So last year husband got a cash bonus and stock award (shows as cash on W2)
chances are great this will not happen again. When I fill out FAFSA it will show an extra $40,000. How do I explain that extra income will not be there in the future.</p>

2

<p>Does not matter. You have to complete the FAFSA every year with the previous year's information. If these bonuses do not occur on next year's FAFSA then the EFC calculation will reflect that. </p>

<p>It will hurt you for this year however.</p>

3

<p>Well...please don't take offense at this...but you did get a $40K bonus. While this wont' be reoccuring, perhaps some of it can or could have been dedicated to helping with college costs (especially since this sounds like a one time thing that you usually do not have included in your "cash flow").</p>

4

<p>A few years ago I won $37K...I knew I would not be able to go to college and get a 0 EFC, so I didn't go. I waited till this year when my 2008 income was reflective of my "normal" income. FAFSA does not care that you normally don't get it or even if it is already gone. They just know that it was there and that you could have used it for college expenses. Next year it will go back to normal, but this year expect a high EFC.</p>

5

<p>Bonus (after taxes) was split between all three 529 accounts so the money was put to good use.</p>

6

<p>For those of us who have total compensation = to a fixed portion (salary) plus variable (bonus) and where the variable is being cut in half (most financial firms), next years total compensation will be anywhere from 15% to 50% less then 2008.</p>

<p>I guess there is no way to reflect that until next years FAFSA and CSS Profile, correct?</p>

7

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<p>There is no place to reflect that on the FAFSA. I thought there was a question on the Profile about projected income for 2009...but I haven't done a Profile in a few years..so check with someone who has!!</p>

8

<p>There is.....</p>