<p>In the 'Finances' section, 'Student's Info' column, where do I include workstudy earnings and taxable scholarships?</p>
<p>AGI line AND Work Study line
OR
Work Study line only</p>
<p>The calculation seems wrong when I enter it in both places -- shouldn't work study income and taxable scholarship income not adversely affect the next year's FAFSA calculation?</p>
<p>If you file a tax return, the taxable scholarship and WS money is already included in the AGI that you must report on FAFSA. You then report them separately in the questions that ask how much WS and scholarship money is included in the AGI. The amounts reported in these questions are deducted from the AGI in the EFC formula.</p>
<p>If you don’t answer the questions correctly, the WS/scholarship income may affect your AGI. If you follow the instructions and answer the questions properly, WS/scholarship income will not increase your EFC.</p>
<p>The Collegeboard EFC calculator doesn’t appear to work that way, that’s why I asked the question.</p>
<p>I know that those two items are already in AGI, so I would think that putting them on the WorkStudy line would result in a subtraction, however that’s not what I see happening.</p>
<p>I tested it by putting $10k in AGI and $5k on the work study line (i.e. $5k of normal W-2 earnings, and $5k of workstudy/taxable scholarships).</p>
<p>And then by recalculating it and putting $5k in AGI and zero on the workstudy line.</p>
<p>Shouldn’t the two answers be the same (net of $5k of income for FAFSA purposes)?</p>
<p>Hmm, Is the difference quite small? You might see some small differences entering the net figure in AGI rather than the proper AGI # and WS/scholarships, For instance the FAFSA EFC formula will calculate allowances for State taxes based on the AGI. Those would reduce the income used in the EFC calculation. And did you input actual federal taxes paid? I know the finaid EFC calculator will estimate those if you do not include them - they are also an allowance against income.</p>
<p>On the other hand, for FAFSA an income of $5000 is below the protected income allowance, so i would expect no impact at all on the EFC.</p>
<p>The difference isn’t small (Facts: Work Study W-2 $1,750, Taxable Scholarships $4,000, Other W-2 earnings $5,000, Capital Gain $123)</p>
<p>Gross Method:
AGI $10,873
Earnings from work $10,750 (included in AGI amount above)
Work Study Earnings and taxable scholarships $5,750 (included in AGI and included in ‘earnings form work’)
US Income Taxes Paid $508</p>
<p>Cash/Savings $100</p>
<p>Student’s Contribution calculates to $1,574</p>
<p>OR - Net Method</p>
<p>AGI $5,123
Earnings from work $5,000
Workstudy and taxable Scholarships $0
Taxes Paid $508
Cash/Savings $100</p>
<p>Student contribution calculates to $20</p>