<p>Is there any tax advantage re a dependent student and parents Profile report for the student to take the student loan instead of a work-study which then is included in income the following year (and you are paying FICA/taxes on it)</p>
<p>Just wondering ...</p>
<p>Work-study income doesn’t count as income on FAFSA.</p>
<p>and…work-study would be income for the student, not the parents, so probably not much taxes (if any)</p>
<p>You don’t pay FICA on work study. The income is, however, taxable.</p>
<p>OK So no FICA for work study…
however if student is dependdent and not filing income tax form currently…
do they then start filing as a freshman if they have a work study?</p>
<p>Taking a loan is not income on Profile right–its a debt?</p>
<p>They file if they owe tax or have tax withheld. Most students who are on work study don’t make enough to owe any federal income tax. They may owe state tax.</p>
<p>A loan is not income. FAFSA and Profile don’t care about debts.</p>
<p>At some schools, it could be difficult to get a work study job. So even if it is awarded, it doesn’t necessarily mean the student will find a job!</p>
<p>Very true…there are posts from students/parents where W-S jobs couldn’t be found. </p>
<p>If the student already has taken out the max student loans for the year, then W-S can’t be converted to student loans.</p>