<p>My mother recieves social security payments for my 34 year old disabled sister. She doesn't know whether to include these payments in the FAFSA. If she includes this money in the FAFSA, then the government will expect my sister's social security earnings to be used towards my education, which is totally unfair.</p>
<p>Therefore, I was wondering if I could exclude this information. My sister needs her social security earnings. And I don't think it's right that her money should go towards my tuition. I would feel very guilty.</p>
<p>Social Security (SS) sends out a SSA-1099 form. Who's SS number (SSN) is listed on form. If it's your mom's SSN, then depending on your mom's other income, some or all of the SS money may show up as part of her AGI and reported as taxable income. Even if it's considered non taxable income, your mom would have to report it on FAFSA parent schedule A.</p>
<p>However when you say "My mother recieives social security payments for my 34 year old disabled sister" does the SS money show up on the SSA-1099 under your sister's SSN. If yes, then the money would not show up anywhere on your mom's tax return nor would it show up on FAFSA. And the money would not be a factor in determining your EFC. With minors or people who are disabled, SS money is typically consider income to the minor or disabled person, your mom is just acting as a fiduciary, meaning your mom is responsible for managing your sister's money.</p>
<p>When completing the FAFSA, social security benefits must be reported for ALL members of the household, regardless of who the payment is for. The school may take into consideration that the funds are for your sister when they look at your need for school based funding, but Federal funding will use your sisters SSA payments as part of your EFC figure.</p>