<p>I am looking at the 2013/2014 Fasfa form as preparation to filling out the 2014/2015 fasfa for my daughter who will be a freshman next fall. I am confused by item#87 concerning total income from work. The instructions say to use line 7 from form 1040A but I seem to recall hearing somewhere that the value for item#87 should include any tax deferred income such as contributions to 401k accounts. Should this information be included here? What about other tax deferred income such as the amounts deducted for health insurance premiums?</p>
<p>There is another item that asks for amounts contributed to tax deferred retirement accounts, I believe. Hoping someone else chimes in…my FAFSA line item knowledge could be wrong!</p>
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I don’t think so. Most tax deferred income don’t go on the line 7, 12, or 18 of IRS Form 1040. And only these lines go on the item #87 of 2013-2014 FAFSA.</p>
<p>For 2013-2014 FAFSA:
For 2012 Form 1040: Line 7 is
line 12 is
line 18 is
</p>
<p>Yes, don’t put that on lines 86 & 87. On the 2013-14 fafsa, questions 92a and 92b are for pre-tax and deductible retirement contributions. You don’t want that amount counted twice. Follow the instructions for each line as written. Pre-tax health insurance is not added back in, health insurance is not considered a choice, not deferring saving for retirement instead of paying for college is considered a choice.</p>