<p>I am looking for some clarification on inheritance money. I stand to inherit a sizable amount of money from my mother's estate. A portion of this is considered untaxed income (ie interest earned since her death); however, a large portion is not considered 'untaxed income' as it is $ that has already been taxed. I will receive a K-1 with a breakdown of what is untaxed income. I will also receive a 1099. However, this will be a small portion of the money. Nowhere on either the FAFSA or CSS Profile do I see anything that asks about anything other than untaxed income. I have put the bulk of the $ in a retirement fund.</p>
<p>This is a one shot deal for us and critical to our retirement. I expect to pay more for college this year due to the increase in our 'untaxed income' and then next year we should go back to our usual modest income. I have shown the wording from the CSS profile to an accountant, I have looked it up on IRS websites for a definition. My accountant has assured me the money from the estate/trust does not fall into the category of 'untaxed income'</p>
<p>I am not trying to cheat the system - I am terrified that I am not filling this out correctly. I have read online financial articles that say the money should be included on the FAFSA and ones that say it is only the 'untaxed income' portion that is included.</p>
<p>Can anyone point me in the right direction or clarify for me?</p>