<p>Re: your social security income – for FAFSA the untaxed portion of it does not have to be reported. I think it also doesn’t have to be reported for CSS.</p>
<p>I am in a similar situation – my husband just started receiving SS disability. Since I am still earning a pretty good living and we file jointly, a portion of his benefits will be considered taxable by the IRS (still waiting to hear from my CPA how much). That taxable portion will be included in our adjusted gross income on our 1040s, and will be included in the FAFSA calculation, but the rest won’t. </p>
<p>Since your wife’s income is fairly modest, unless you have a lot of reportable assets you should end up with a relatively low estimated family contribution (EFC). Non-reportable assets for FAFSA include the equity in your primary residence, funds in qualified retirement accounts and the value of a family owned business. (These things may be included by colleges which use the CSS Profile, though.)</p>
<p>I also second the suggestion of the book. It’s under $15 on Amazon. Also, hang around these forums – you’ll learn a lot.</p>