<p>We had to take a pre-retirement distribution from an annuity to pay some bills in 2008. This was untaxed and reported on a 1099-R. Do we have to list that as "untaxed income" on the FAFSA? I don't want to show a distorted picture of our income. It was a one-time withdrawal and the money is gone now.</p>
<p>I don't know about annuities. But hardship withdrawals from an IRA which should be similar in principle are to be included. Please don't leave something out because it is one-time.</p>
<p>I was more concerned about making sure I put it in the right place on the form. Do you know where the hardship withdrawals should be entered?</p>