Question about Money Received

<p>Okay, so I'm a little confused about something. I received a check for $100 from my grandpa for my birthday, and I deposited it in my bank account. It was just a birthday gift, and I called the financial office at the college I plan on attending and they said that it didn't have to be reported. I keep reading in some forums that it does, and others that it doesn't. I'm confused. I can't make a correction to my FAFSA right now because my mom is unable to sign since she is on vacation. Does the $100 check need to be reported on the FAFSA application?</p>

<p>If you’ve already filed your FAFSA, you do not need to worry about gift money. Or any additional income for that matter. Colleges automatically assume that you will have a summer job and be earning money to help pay for your contribution. Remember, gift money does not need to be reported on taxes either. Unless it’s over $10,000 a year. </p>

<p>This was from last year’s birthday. I deposited it in January this year. Does it need to be on there?</p>

<p>No, the FAFSA is a snapshot of what is in your bank account at the time. $100 one way or another is not going to affect your financial aid. Just let it go. </p>

<p>@megpmom The last time the annual gift exclusion was $10,000 was in 2001.</p>

<p>@megpmom actually, ANY money you have- whether it’s in a bank account, cash on hand, or in uncashed checks under the mattress needs to be reported on the FAFSA. </p>

<p>With that said, I agree it’s not a big deal. Let it go. </p>

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<p>This is really bad information and should be corrected. As noted above by Madison85, the current gift tax exclusion is not $10,000. For tax year 2014, the exclusion is $14,000. Also, this statement gives the impression that a gift of more than the exclusion amount needs to be reported as income by the gift recipient, which is not the case. Generally, a bona fide gift of any value is tax free for the recipient. Rather, the value of a gift above the annual exclusion amount counts against the gift giver’s estate exclusion for purposes of the estate tax, and the gift giver files the tax form to document a gift greater than the annual exclusion amount.</p>

<p>Sorry - I live overseas now. Didn’t know the gift tax exclusion went up. But, anyway - I knew that it was above $100. :)</p>

<p>Megpmom, the problem with your post was not so much the amount of the gift tax exclusion but the impression you gave as to what it means, as corrected by Middkid86. If a student gets a gift of $10K or $100K, it is supposed to be reported on FAFSA as unearned income. It does not get reported for tax purposes, not because of any gift tax laws but because that is not what gift tax addresses. It’s the GIVER who could have reporting and tax issues. </p>

<p>When it comes to students getting gifts for graduation, birthday, etc, that is truly a gray area. Most students do not report those gifts, even when they are cash gifts when not considered “significant”. That you called your college fin aid office and asked and they answered as they did, likely means that they might ignore some of the smaller gifts. If that had been $1000, $10k, $100k, where they use their professional judgement as to what to leave out and what to include is something you should run by them. However, something you got in January of 2014 would not be reported on the FAFSA for the school year starting in 2014 because the income reported on this 2014 FAFSA is 2013 income, not anything you got in 2014. However, that money if sitting in an account or in your pocket or anywhere of yours on the date you completed your FAFSA should have been reported as an ASSET, as should have been any assets of yours. </p>

<p>At this point, I agree with Romanigypsyeyes, to let it go with what’s been filed. You ran it by the school fin aid officer, due process has been done.</p>