<p>My D was a cadet at a Service Academy for 3 months (left on medical) and cannot return. She received 3 months cadet pay, 2k with approx 900 deducted for payback advance for books, uniform, etc.. The w-2 will show 5k in wages, the difference of 3k being waived debt by the government ($ not paid back by advance which again was for books, uniforms, boots etc.) So, in effect she is being taxed on items she was given and then returned when she left.
I called fafsa and they suggested the amount be put on worksheet b for housing, food for members of the military.
The additional 3k and 900 which was paid back was money never received and it affects the student contribution.
Any advise?</p>
<p>Thanks..</p>
<p>Well I'm not sure how you would handle this but my thoughts (which may be wrong) </p>
<p>First - there is no worksheet B on the 2009-2010 FAFSA. (I am assuming you are completing the 2009-2010 FAFSA for fall 2009, not the 2008-2009 which would be for this spring or possibly summer. If it is the 2008-2009 FAFSA then the same would apply but, of course, a 2008 W2 would not be entered into the 2008-2009 FAFSA which would require 2007 income.)</p>
<p>Second - assuming they are referring to question 47G (Housing, food and other living allowances paid to members of the military, clergy and others) - money entered here is added to the student income by the EFC formula which would mean it will be double counted making the EFC even higher. All the amounts in question 47 are for other untaxed income and are added to income in the formula. Amounts entered in question 46 are deducted.</p>
<p>I am not sure there is a way of accounting for this on FAFSA. You have to report the W2 as is on FAFSA. My suggestion would be to file, then talk to a financial aid officer and see if they can make an adjustment because of special circumstance. I don't know if this would qualify but it is worth asking.</p>
<p>Hopefully Nikkil or Kelsmom will see this question and weigh in. Good luck</p>
<p>Yes, you are assuming correctly. I need to do the 2009-2010 fafsa. (I was looking at the old form to align the questions with a 2007 1040 since 2008 is not completed.)
Yes, fafsa said to list as Housing, food etc.. which I thought was added.
I have called her fin aid office at the school and said I am prepared to explain and provide copies of her pay stubs to support her actual wages. They were open to an explaniation so we shall see. </p>
<p>Thanks..</p>
<p>I don't know the answer to your question but - I hope you realize that she can now file as an independent student.</p>
<p>JustAMom- can you enlighten me on how she would qualify as Independent? She is back at home going to local college this semester.
Thanks for your response!</p>
<p>Look at the qualifiers for and Independent student. She is a veteran of the armed forces which includes those who attended service academies.
Question #52.
[quote]
Answer “Yes” (you are a veteran) if you (1) have engaged in active duty in the U.S. Armed Forces (Army, Navy, Air Force, Marines or Coast Guard) or are a National Guard or Reserve enlistee who was called to active duty for other than state or training purposes, or were a cadet or midshipman at one of the service academies, and (2) were released under a condition other than dishonorable.
[/quote]
No one told you that?</p>
<p>No they did not.<br>
Would the independent status carry over for future years of fafsa filing. Othwise, she wouldn't revert back to "dependent" status by living at home for 1 semester.</p>
<p>she remains independent since her "independence" is by virtue of the fact she is a veteran. Am I correct in assuming she was discharged and is not on medical leave? She should have a dd214 which she should safeguard forever.</p>
<p>Correct, Honorable Discharge, has form dd214. This is a great thing!!!</p>
<p>We also completed the fafsa for 2008-09 last Oct. Would I be able to correct with her independent status?</p>
<p>I don't know - you could try it.</p>