I (parent) receive disability payments from a disability insurance policy that I purchased and paid the premiums, so it is nontaxed. Do I report this as nontaxed income on the FAFSA? I contacted FAFSA, and the representative said that it is not reported on the FAFSA. I think she may have misunderstood my question to be about SSI disability perhaps???
Pretty sure you need to report it.
https://fafsa.ed.gov/fotw1516/help/totalOtherUntaxedIncome.htm
Social security benefits are specifically excluded but other disability is specifically mentioned as reportable.
FAFSA specifically says to include untaxed disability payments on line 94.i.