<p>For her total income for 2009 (question 88), my mom filled in her total income which includes how much she put aside for her 401k. My uncle who was double checking insists that for question 88 401k does not count as a part of the question ("How much did your mother earn from working in 2009?") </p>
<p>Our adjusted gross income subtracts out her 401k funds anyways. So as long as EFC is based on the AGI, does it really matter who is right?</p>
<p>You have to report the Adjusted Gross Income from the tax return (which would be reduced by any before tax contributions to a 401k). Then you have to report any pretax contributions to 401ks or IRAs in question 93a. In the EFC formula the contributions to the 401k are added back to the AGI before calculating the EFC, as they are considered money that could have been available for college.</p>
<p>The AGI reported on FAFSA must agree with the AGI on the tax return. And any pretax contributions to IRAs must be reported in question 93a.</p>
<p>The money earned from working question is used to calculate certain allowances related only to income from working. Primarily FICA taxes. FICA taxes are a little over 7% of money earned from income. In the EFC formula the allowance reduces the income available for the EFC.</p>
<p>These are the instructions for question 88
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<p>Thanks swimcatsmom, question 93a has the amount my mom put into her 401k. So in question 88 I should take that amount out?</p>
<p>The answer to your question is detailed in the post above.</p>
<p>Yeah, I read it. I have trouble understanding this jargon, so I’m asking for a clarification.</p>