<p>I'm currently am a sophomore with a workstudy position. I work studied last year also. However, unlike last year, I have to pay taxes. Why is this? I've heard somewhere that I don't (Please check me here) since it is the policy of work study. So my question is this:</p>
<p>When I file the Fafsa and other finanical aid forms, do I have to include the earnings that I made? I don't think that I have to because it is part of the finanical aid package that they gave me, correct? They can't give me a job and turn around and say that I had an income last year. </p>
<p>What do you guys think? Thanks.</p>
<p>Yes you generally have to pay taxes on it. You show it as income on FAFSA but then deduct it in another part of FAFSA (worksheet C) so it does not detrimentally affect your EFC</p>
<p>thats right-
work study is actually part of your financial aid package.
You do need to claim it for taxes, but when reporting income, money earned from work study is deducted from FAFSA on worksheet C.</p>
<p>Thats one reason why work study jobs are better than just getting a job on your own generally.
Not only are the work study jobs usually on campus and are more flexible for study times etc- but the money is deducted from your income.
If you just worked off campus you would have to count it.</p>
<p>so I do need to fill a tax return and remember to report it on the worksheet C. THanks for your help!</p>