I just called FAFSA to ask where I need to list inheritance received by a parent in the prior year. At first I was told “Assets”, which I quickly questioned since it’s considered non-taxable income. She put me on hold for a few moments, came back and asked where the money was currently. I told her that it’s been spent, to which she cheerily replied, “Then you don’t need to report it anywhere on the FAFSA!” I’m hoping she was correct, especially since I received two different answers.
Well, both answers could have been correct, depending on the circumstances. If you hadn’t spent it, “assets” was the correct answer. If you spent everything, there’s nothing to report.