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Just for clarification (as the OP is new to FAFSA). You must report the student’s total AGI (or income if student is not required to do a tax return)on FAFSA. There is an income allowance built into the EFC formula, but the formula applies the allowance to the AGI which must be reported in full.</p>
<p>As mentioned above, do check for any impacts to income from converting the UGMA. Student income over the protected income allowance will have a 50% impact on the EFC. Student held assets will have a 20% impact. A 529 account is treated as a parent asset so will have a maximum 5.6% impact. Take it all into account when making your decision.</p>