Quick FAFSA Question

<p>My son cashed in several small gift EE savings bonds in late December 2005 that he was given as a baby. The interest he received is small, not nearly enough for him to file a tax return for 2005. He has no wages or other earned or unearned income/dividends for the year. Does this EE interest get reported on the FAFSA somewhere??</p>

<p>My son's car accident in December really set our FAFSA application process back majorly. We plan to do a "will file", but I've looked at the paper filers instructions for guidance...it doesn't seem to address this.</p>

<p>Thanks!</p>

<p>I don't know the answer to your question but please update us on how your dear son is doing.
I hope all is well.</p>

<p>Thank you so much for asking. I hope that you and the other kind posters don't think ill of me for letting so much time go by...it has really been a tough time for our DS. I'll resurrect my OP and fill everyone in. Best to you! OB</p>

<p>He needs to report the interest. I think that the amount of interest will be reported on a 1099, and any time there is a 1099 - even if no tax return is filed -- the money should be accounted for on the FAFSA.</p>

<p>My kids had ee bonds. Unfortunately they were purchased by a grandma for them, so the interest earned is not taxfree if used for college (Like it would be if they had been purchased by parents.) And we didn't know that we could report the interest earned each year without cashing them, so that tax on only one year of interest would be due when finally cashed in. Yes, this interest should be listed on the FAFSA.</p>

<p>Does this mean that if a child has EE bonds and does NOT cash them in at all but just keeps them that they do not have to declare them as assets on the FAFSA? Ugh...we have been declaring these as assets even though we have not cashed a single one in.</p>

<p>You should declare the value of the bonds as assets. You can download software from <a href="http://www.savingsbonds.gov/%5B/url%5D"&gt;http://www.savingsbonds.gov/&lt;/a> to track the bonds and give you their current value.</p>

<p>Bonds are assets that should always be reported.</p>