<p>I have been confused over where to put this for the past 10 years (I've been doing Fasfas for a long time!) It is untaxed income, but it is also income on which social security is paid. Do you put it in both places? Is it then counted twice or is that accounted for in the formula? I've never gotten a good answer and now I'm back to financial aid forms after a year off.</p>
<p>I need to clarify – does it go on 86/87 as income earned from work (and thus they have that you paid SS on it built into the formula) or does it just go on 92g (in which case I don’t think the formula accounts for the fact that you paid 13.3% SE tax on it, does it?)</p>
<p>It’s untaxed income. BUT, your AGI is reduced by 1/2 your SE taxes, so 1/2 of the FICA and Medicare your paid on the housing is accounted for. The other half, well, you’re right. You don’t get any credit for the SS you paid on it.</p>
<p>Thanks. That’s what I thought, but wanted to be sure.</p>
<p>Yup, what ordinarylives said. </p>
<p>And be grateful we still get to double dip by getting the untaxed housing allowance and deducting the mortgage interest we pay with it. So glad I’m not in a parsonage anymore!</p>