Hello, I just have a few questions regarding work-study. Let’s say I am qualified for a work-study job in my Financial aid package. And I’m also in the SNAP program also known as food stamp, but I have not actually had a work-study job.
If I find a job, would I have to report that as earned income? Or would it just be fine having the work-study and not having to report it? I’m just a bit confused because isn’t work-study money I get from my Financial aid like a loan but I’m just working for it and not an actual job outside of the FASFA system? Thanks in advance
Money earned through a federal work-study job is not counted as income in calculating your financial aid in subsequent years.
However, it is income for the purpose of income taxes. It’s not a loan. It’s a job. You earn the money as you work. Your job has nothing to do with the “FAFSA system.” The person sitting next to you doing the exact same job may not be on work-study. What makes it “work-study” is that part of your earnings is subsidized by the federal government, so it costs the employer less to hire you (the employer pays only part of your salary).
Work study isn’t like a loan. You have to pay back loans…you don’t have to pay back work study earnings.
Work study earnings are counted as income for inc9me tax purposes.
HOWEVER, work study money is not counted as income for FAFSA purposes. There is a specific question on the FAFSA bout this. Your work study earnings will be subtracted from your total income when the FAFSA formula is applied.
The income from any job that is not through work-study awarded as part of a financial aid package is treated the same as in any job. The paycheck income.
SNAP rules will define what needs to be reported. In all likelihood, anything earned from a job, including work study or a regular job on campus, needs to be reported, but you have to check with your SNAP administrator.
