Taxable Scholarships, Filing Status and FAFSA

Paying for College
11

<p>Here’s the fafsa formula for 2014-15. You can see 44a - 44f being subtracted from AGI on page 10, item 34:</p>

<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf”>http://ifap.ed.gov/efcformulaguide/attachments/091913EFCFormulaGuide1415.pdf&lt;/a&gt;&lt;/p&gt;

<p>I think in almost all cases, option 2 works out best for the family as a whole. If you use tax software, run it both ways. Even if form 8615 is required, filing a 1040a for the student is not hard.</p>