<p>I have to disagree…according to both the instructions and the FAFSA help desk, the UNTAXED portion of SSDI is no longer reported in the untaxed income section or anywhere else on FAFSA. I think this change took effect with the 09/10 FAFSA. Untaxed SSDI falls under the general SS benefit exclusion for FAFSA, just as untaxed SS retirement benefits would. The terms they use are not specific to any individual SSA program and are applied to all SS benefits. Any other type of untaxed disability income such as state, employer, private, etc. would be reported in the untaxed income section. I have filed two FAFSA’s and have been verified by two colleges using this method (we are not auto 0), so I’m pretty sure this is correct. When in doubt, I like to get advice straight from the FAFSA folks and make sure to document everything…they actually will answer emails:)</p>
<p>I have heard too many wrong answers from the FAFSA folks to depend on them. However, the fact that you were verified & the EFC didn’t change is a good omen. SSDI is not specifically addressed in any written communications I can find.</p>
<p>sk84mom - I like your answer better than mine. I’ll be doing my first FAFSA form this year and I receive SS disability benefits. I based my answer on reading the following on a sample FAFSA form. From what you are saying the ‘untaxed SS benefits’ that are not included are retirement as well as any type of disability (reg or SSDI) benefits.</p>
<p>FAFSA 2009-2010 Question 96i. Other untaxed income not reported, such as workers compensation, disability, etc. Dont include student aid, earned income credit, child tax credit, welfare payments, untaxed Social Security benefits, Workforce Investment Act educational benefits, combat pay (if you are not a tax filer), benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion or credit for federal tax on special</p>
<p>I appreciate your correcting my misunderstanding and apologize for my misinterpretation. I should have stuck with my earlier posting written yesterday to SpecialMom which was to ask FAFSA directly.</p>
<p>I think we can all agree that the untaxed portion of ssdi is not reported.</p>
<p>The issue is the taxable portion of ssdi. Should it go into agi on the fafsa and therefore decrease efc. That is how I have done two fafsa’s that were submitted to the same school. The same school’s financial aid office took the ssdi out of the first one that was submitted the first year, then left it in the fafsa that was done the second year. So there was no consistency in my case even in the same financial aid office and the same college. </p>
<p>If taxable ssdi doesn’t go into agi, then what makes ssdi different from the taxable “Social Security” income mentioned in the worksheet on page AVG-16 of this document that shows what to include as agi?</p>
<p><a href=“http://ifap.ed.gov/fsahandbook/attachments/1011AVGCh2.pdf[/url]”>http://ifap.ed.gov/fsahandbook/attachments/1011AVGCh2.pdf</a></p>
<p>If you reported SSDI as income on your tax return, you cannot remove it from the AGI for FAFSA purposes. The actual AGI must be reported on the FAFSA. That I know for a fact.</p>
<p>I reported both years the taxable ssdi as as part of agi, and the school made changes one of the years.</p>
<p>I am surprised they did that the first time around. Which is probably why they didn’t do it the second time around …</p>
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<p>I’m not sure what you mean by “any type” and “reg or SSDI”. My understanding is that the Social Security benefits exclusion for FAFSA only applies to untaxed benefits that are actually paid by Social Security. I think you mean SS disability, SSDI dependent, Supplemental Security Income, etc. but just wanted to clarify that! SSDI is what most people would think of as the “regular” Social Security disability insurance program for people who are unable to continue working and is based on their Social Security earnings record. SSI is for disabled low income, blind, or elderly people and is based on income/resources.</p>