<p>Not obvious at all actually. Most tax credits are *not * treated as untaxed income by FAFSA and several of the most common ones are specifically mentioned as not being treated as untaxed income in the FAFSA instructions. This one was a new and short lived credit and its treatment has never been addressed by FAFSA as most of the others are. It often takes FAFSA a year or 2 to catch up with new tax impacts and as this credit has come and gone it will probably never be fully addressed.</p>
<p>Hopefully one of the helpful FA officers that frequent CC will see this thread and have some accurate information.</p>