<p>I'm filling out the FAFSA and there are a few questions that are difficult to answer and I want to make sure I'm not making any mistakes. Both of my parents receive SSD because of a car accident that left them permanently disabled, so neither of them work. </p>
<p>For my parent's financial information section, it says, "Other untaxed income not reported such as workers' compensation or disability." I selected that, and it asks for the annual amount received for 2012. My mother receives XXX a month, my father receives XXX a month, and my mom receives XXX on my behalf per month. I added up all the numbers and multiplied it by 12 (it's a fixed income) for the total amount.</p>
<p>Then, it gets to the Student Financial Information section and one of the choices is, "Money received or paid on your behalf". I previously put the XXX that I receive a month in the section for my parent's financial information, but now I'm wondering if I just put the money my mother and father receive from SSD in the parent financial information section and then put the money that I receive from SSD in the "money received or paid on your behalf" section of the student financial information section.</p>
<p>Sorry if this is confusing or a stupid question, but I'm not sure where to put the money I receive, since it seems like it could go in either section. :p It technically is my parent's income, but it comes in my name under my mother's income.</p>
<p>I’m no expert, but I’d leave it where it is. My understanding is that your mother’s payment has been adjusted to account for the fact that she has a child to take care of . . . but it’s still her income.</p>
<p>Someone else may want to jump in and correct me, though.</p>
<p>I’m pretty new to this, but I thnk that untaxed Social Security benefits are not included at all on the FAFSA. The disability they mention would be for private disability payments. The same would apply for Social Security benefits paid on your behalf.</p>
<p>Boise1 is correct. The instructions (for both student and parent income) are clear:</p>
<p>Do not include student aid, earned income credit, child tax credit, welfare payments, untaxed Social Security benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, combat pay, benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion or credit for federal tax on special fuels.</p>
<p>Wow, thanks! So that means that there is nowhere on the form to put the income received from SSD? How do they find out how much income my parents receive, or does it not matter in this case? (None of my siblings went to college, so the FAFSA is a completely new thing for both my mother and I. Sorry if these are basic questions.)</p>
<p>I don’t want to misadvise you (again!), but it looks like it’s simply not considered. And if that’s their only income, then so be it. Income = zero.</p>
<p>Do not include SSDI. Yes, if the income is 0, it is 0. You may be selected for verification, but if asked about it, you just provide whatever info the school requests. I worked at a school with lots of 0-income families … families with 0 income due to SS income, SSD income, being on public assistance, AGI 0 due to business losses, etc. It’s not as uncommon as you may think. The key is to answer all questions as instructed.</p>
<p>This probably doesn’t apply to the OP’s question, but I just wanted to add this in case other people are interested in this topic:
In our situation I am employed and making a goodish salary while DH is disabled (early onset Parkinson’s). Because of my income we have to pay taxes on some of DH’s SSDI. Last year $20K of his $24K benefit was considered taxable income, for example.
That $20K was part of our AGI on our income tax forms and therefore had some impact on our EFC.</p>
<p>The IRS has a worksheet on which you can figure out how much of your SS is taxable.</p>
<p>Also, the first year DH got benefits he also got a lump sum covering the year or so it took to get his application approved. That was also considered income, although I <em>think</em> we were allowed to spread it over two years – our accountant took care of it so I don’t really remember.</p>
<p>Our two kids got/get benefits as children of a disabled person until they are 18 and graduate from high school. Their benefits are under their own social security numbers and are not taxable (unless they also earn a bunch of money). They do not have to report that income on FAFSA. However, DS has the remains of his benefits in a bank account, and that is reported as his asset. My DD’s benefits are being put into a 529 fund (she’s still in HS) and are reported under our assets.</p>
It just feels strange putting down 0 even though that’s what they want.</p>