Scholarship money included in AGI, line 43/44 FAFSA, and "income from work" question

Paying for College
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<p>We finished and submitted our FAFSAs a few weeks ago, but I am still not sure that we placed the scholarship money included in son's AGI from tax return or income questions correctly.</p>

<p>My questions:</p>

<p>1) </p>

<p>Son filed 1040EZ. The FAFSA says to use line 4 from the 1040 EZ for the AGI question. So we did, which includes the scholarship.</p>

<pre><code> We then put the scholarship amount in line 43d, "student grants and other awards".

We did not put anything for lines 44. Was this correct?
</code></pre>

<p>2) </p>

<p>FAFSA line 38 asks for "income from work". It also says to use line 1 from the 1040EZ.
when you look to the right at the instructions that pop up with each question. </p>

<pre><code> But line 4 on the 1040EZ is his wages + the scholarship, of course.

I assume we still put line 1, wages and scholarship, but this is adjusted with the
reporting of the scholarship in line 43d?
</code></pre>

<p>I've already had to make one correction, and now need to go in and use the IRS retrieval. But I wanted to ask about this in case it needs corrected so I can do it all at once. Thanks!</p>

2

<p>Everything you did sounds correct. Use line 1 for income from work. The scholarship is included in the AGI. 43d removes that amount from the AGI for purposes of the EFC formula.</p>

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<p>Thanks! This is the first year we had student income, extra scholarships, etc. to add, so I wasn’t sure I was reading it correctly. You are always such a help to everyone. :)</p>