Question about EIC, Additional child tax credit, etc

Paying for College
1

<p>Hello,</p>

<p>Am I supposed to report EIC, Additional child tax credit and making work pay credit anywhere on FAFSA or PROFILE?</p>

2

<p>None of the credits you mention is included on FAFSA. The first time home buyers’ credit & the first $2400 of unemployment income (which is not reported on 1040) are included in untaxed income … but not the credits you cite.</p>

3

<p>Thank you for clarifying that.</p>

<p>FYI. For year 2010, we are to report the entire unemployment income on 1040.</p>

4

<p>^For FAFSA, the 2011-2012 instructions are to report the first $2400 in UI…I also don’t see that the 2009 exemption of the first $2400 carried over to 2010 for tax purposes, so I guess one doesn’t need to use that line for FAFSA anymore?</p>

<p>From IRS Pub 525:</p>

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5

<p>Tax laws are so exasperating! The reason the FAFSA instructions did not state that the first $2400 exclusion should be reported last year was because the decision to allow that exclusion came so late. This year, the instructions on FAFSA include that … but tax laws don’t allow it. Yeesh!!!</p>

<p>Correct … one would not report the first $2400 unemployment compensation as untaxed income if it is indeed reported on the federal return as taxable income.</p>