<p>I have a question regarding "grant or scholarship aid reported to the IRS". The FAFSA asks this under both parents and student financial sections.</p>
<p>Where does my daughter's need-based grant aid get reported? What if the student doesn't file taxes? The amount is not greater than tuition.</p>
<p>It doesn’t get reported anywhere on FAFSA.</p>
<p>The purpose of the question is so that any scholarships or grants that are taxable and therefore included in the AGI do not negatively impact the student’s EFC. The amounts reported are deducted from the AGI in the EFC formula. If they were not taxable they were not included in the AGI in the first place, so the AGI does not need to be reduced by them, so they are not reported on FAFSA.</p>
<p>Thank you very much.</p>