Financial Aid Questions

Paying for College
1

Hi,

On CSS parent contributions tab it’s asking for “Tax deferred pension and retirement savings plans” and in the description it says "Include amounts reported on 2016 W-2 Forms in boxes 12a through 12d, codes D, E, F, G, H, and S.

Include untaxed payments to 401(k) and 403(b) plans. Do not include amounts reported as codes AA, BB, CC, DD, or EE."

However, on the form there is a only a C and a DD, what do I put?

Also, one of the schools require me to send a w2 form but I have never filed it before, what do I do? Thanks.

2

The W 2 is the form employers send YOU so you can complete your taxes. If you haven’t worked, you can’t send one.

3

Code C in Box 12 on a W-2 indicates the taxable cost of group-term life insurance over $50,000, and is already included in boxes 1, 3 and 5 on the W-2.

Code DD indicates the cost of employer-sponsored health coverage. This is not taxable, and neither of the amounts reported under these codes have anything to do with completing FAFSA.

4

Did your parent contribute to a pretax retirement plan in 2016?

5

So I found these abbreviations and thought they may be helpful. These are the codes for items in box 12 of your W-2. My question is…do we total up ONLY the ones listed in the FAFSA instructions? I have some others that they do not list. (sorry so long…)

A: Uncollected social security or RRTA tax on tips reported to your employer
B: Uncollected Medicare tax on tips reported to your employer (but not Additional Medicare Tax)
C: Taxable cost of group-term life insurance over $50,000
D: Contributions to your 401(k) plan
E: Contributions to your 403(b) plan
F: Contributions to your 408(k)(6) plan
G: Contributions to your 457(b) plan
H: Contributions to your 501©(18)(D) plan
J: Non-taxable sick pay
K: 20% excise tax on excess golden parachute payments
L: Substantiated employee business expense reimbursements
M: Uncollected social security or RRTA tax on taxable cost of group-term life insurance over $50,000 (only applies to former employees)
N: Uncollected Medicare tax on taxable cost of group-term life insurance over $50,000 (but not Additional Medicare Tax) (only applies to former employees)
P: Excludable moving expense reimbursements paid directly to employee
Q: Nontaxable combat pay
R: Employer contributions to an Archer MSA
S: Contributions to your 408§ SIMPLE plan
T: Employer-provided adoption benefits
V: Income from the exercise of non-statutory stock options
W: Employer contributions (including employee contributions through a cafeteria plan) to an employee’s health savings account (HSA)
Y: Deferrals under section 409A on an nonqualified deferred compensation plan
Z: Income under a nonqualified deferred compensation plan that fails to satisfy section 409A. This amount is subject to an additional 20% tax plus interest. TurboTax does not support the calculations for Code Z.
AA: Designated Roth contributions under a section 401(k) plan
BB: Designated Roth contributions under a section 403(b) plan
DD: Cost of employer-sponsored health coverage. More info
EE: Designated Roth contributions under a governmental section 457(b) plan
FF: Permitted benefits under a qualified small employer health reimbursement arrangement

6

Follow the FAFSA instructions. There’s no need to get creative.