<p>I hope some of the financial aid guru's here can clear this up for me. I have very little faith in the financial aid office of the college that my daughter will be attending after the dealings I have had with the recently! If it wasn't for being a recruited athlete we would have gotten no where!!</p>
<p>There has been an amendment to my daughters FAFSA- a hardship issue for one of us being a dislocated worker. That was all finished up and I thought we were done messing with their office.....but today I get another email notifying me that there has been another correction. So I log on to check it out....and her EFC has now increased by a couple hundred, and it is because they have listed $800 on the 92i line (parents other untaxable income or benefits).</p>
<p>Of course I called, and was told it was new regulation because of the Making Work Pay credit. I am confused though- that was a credit to the taxes we owed....not like it was income. The lady said its how they are being told to handle it......anyone else know anything about it??</p>
<p>Yes, Kelsmom (who is an FAO) posted the other day that that is how they have been instructed to handle the making work pay credit. That and, I think, the homebuyer credit are treated as untaxed income.</p>
<p>Wow. That’s completely unfortunate for my son insofaras his employment was 1099 employment, which apparently can’t be listed on FAFSA as tax paid…and now he’ll get another $800 added back in, of which he was only allowed to use a portion to reduce his tax liability. So he ended up paying SE tax and some of that on scholarship that was erroneously used against housing (non-deductible) instead of tuition. </p>
<p>Then again, excess scholarship is a blessing (although I am beginning to see we applied it incorrectly), as is the capability to work, so I’ll shut up now Just seems like the hits keep coming – to see a kid out of pocket more than $900 at tax time, coupled with cuts to FA he was formerly eligible for, etc. etc. etc.</p>
<p>Yes the 400.00 (800.00 couple) is untaxed income according to the FAFSA rep I just spoke with. Our financial aid office added 8000.00 to our childs FAFSA and said OOPS we added one too many zeros…Now all 8 colleges she has been accepted to have to recalculate due to the error the school made today and again after I make the correction tomorrow.</p>
<p>I really wonder how fair the whole financial aid award program is considering each school can do what ever they want…My child has anywhere from 0 in work study to 4000 in work study. </p>
Just seems like the hits keep coming – to see a kid out of pocket more than $900 at tax time, coupled with cuts to FA he was formerly eligible for, etc. etc. etc.</p>