<p>My grandparent is holding a 529 account in my name. I am wondering when they take withdrawls this year to pay my college tuition will I have to report that as untaxed income on next year's FAFSA form? My college does not require the profile form and the extra forms I filled for my school did not ask about 529's held by my grandparents.</p>
<p>You’re correct that grandparent-owned 529s are not reported on FAFSA. Any money paid on your behalf by others is reported on FAFSA, so you would include the amount paid this year by your grandparents on next year’s FAFSA.</p>
<p>Many people wait to tap into the grandparents’ 529s until their last (calendar) year of college so that the funds do not affect EFC.</p>