My son is applying for FAFSA and I have a question. I have a disability and I do receive disability check and so does my son. But because my husband’s wages and my benefits is taxed (in form 1040, line 20a and taxed benefits is on 20b) , it put our AGI above 60,000 and we are not qualified for pell grant. Without my benefits, we probably would have (Too bad they don’t count how expensive disabilities can be)
Anyway, This is what the website https://ifap.ed.gov/sfahandbooks/attachments/0304AVGCh2NovVer.pdf says:
“Worksheets A, B, and C for questions 44-46 and 79-81
Untaxed items are grouped in the worksheets on the back of the FAFSA. The applicant doesn’t submit the worksheets but reports their totals in FAFSA items 44- 46 (student/spouse) and 79-81 (parents). The totals from Worksheets A and B are added to untaxed income; the total from Worksheet C is subtracted from AGI.
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Untaxed Social Security benefits. Worksheet A asks for “Social Security benefits received that were not taxed.” Tax filers can determine this amount from the IRS form 1040 by subtracting the taxable portion of Social Security benefits from total Social Security benefits. “
So what should I do? Thank you so much!