<p>Does a parents' non taxable pension count as income for a Pell Grant?</p>
<p>Technically yes as it has to be reported on FAFSA. But it also really depends on what other income there is. </p>
<p>The untaxed money has to be reported on FAFSA but If the taxable income on the AGI is below $20,000 (increasing to $30k next year) and the parents meet other requirements (such as filing a 1040a or 1040ez) then you qualify for the automatic zero EFC so untaxed retirement income is not taken into account. </p>
<p>But as soon as you cross that threshold to where you do not qualify for the automatic zero EFC then the FAFSA EFC formula adds the untaxed income to the AGI before calculating the EFC so then it will increase the EFC and will affect eligibility for Pell.</p>