<p>I'm trying to figure out where I want to work and where I would come out with the most money. Lets say I make $4000 this summer, but with taxes I only take home around $2800 (about 28% deduction). Since $3000 dollars are protected on the FAFSA, would my EFC increase by $500 (50% of $4000-$3000), or would it not be affected since I actually only took home less than the $3000 protected income? Thanks.</p>
<p>Actual taxes (not deducted but after your return properly computes the tax and gives you a refund) will be used to reduce your income. The the EFC formula uses a table to calculate ss taxes and deducts that. And the same for State taxes.</p>
<p>It is unlikely you will actually pay 28% in taxes on $4000. You have a $5000+ allowance before you pay any taxes (more if you cannot be claimed as a dependent by someone else for taxes). Then the basic tax rate is 10%</p>
<p>So income less protected allowance less taxes less allowance for ss taxes less allowance for State taxes = $xx
$xx x 50% is added to the EFC</p>
<p>The student has an after-tax income protection allowance of $3080 for 08/09 FAFSA. So for most students, the amount grossed above $3335 will be assessed at 50%.</p>
<p>I think the protection limit is increasing</p>
<p><</p><section 601="" would="" increase="" the="" amount="" of="" income="" protection="" allowance="" protected="" in="" calculation="" a="" students’="" expected="" contribution="" following="" ways:="" 1)="" for="" dependent="" students,="" it="" to="" $3,750="" 2009-2010="" academic="" year;="" $4,500="" 2010-2011="" $5,250="" 2011-2012="" and="" $6,000="" 2012-2013="" year="">><p></p>
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