Anyone have information as to if untaxed social security disability does or does not go on the Fafsa application. I have been told it does and I have been told it does not. One person at the financial aid office at school says it gets reported under disability, another says it does not get reported at all The fafsa website says to not include untaxed social security. I have tried calling Fafsa numerous times and sit on hold for at least fifteen minutes only to be hung up on. I need to submit the application but I have no idea if I am supposed to include the untaxed SSDI
Still confused…it states report disability…not untaxed social security benefits…so which category does social security disability fall into…I emailed Fafsa after being unable to get through on the phone but have not heard anything back yet.
This is question 94i on the FAFSA.
The response indicates the total amount of any other untaxed income and benefits that the student’s parents received in 2014, such as workers’ compensation, disability, Black Lung Benefits, Refugee Assistance, untaxed portions of Railroad Retirement Benefits, or wages not subject to taxation by any government. Also include the untaxed portions of health savings accounts from IRS Form 1040-line 25.
The following benefits should not be included: extended foster care benefits, student financial aid, earned income credit, child tax credit, welfare payments, untaxed Social Security benefits, Workforce Investment Act educational benefits, on-base military housing or military housing allowance, combat pay, benefits from flexible spending arrangements, foreign income exclusion, and credit for federal tax on special fuels.
:-/
Do they have to pay income taxes on this disability income? I hope someone from FAFSA gets back to you to clarify which category it goes in so you know for sure.
Here you go: http://talk.collegeconfidential.com/financial-aid-scholarships/1720008-fafsa-and-ssdi-disability.html
@kelsmom is a college FA expert.
Kelsmom is a college finaid officer.
Kelsmom here. Untaxed SSDI is not reported on the FAFSA - if any portion is taxed, it is already included in the AGI. Any other untaxed disability benefits - such as LTD that was purchased on an after-tax basis (therefore not taxed when received) - ARE reported.
thanks for all the replies.
Kelsmom…the social security disability is untaxed…so I do not need to report that? Also there is disability pension from former employer…that does get reported under other disability correct?
Thanks~
I received an email reply from Fafsa and it says that they are unable to determine an answer to my question…lol
Post # 6 has the answers to both questions you asked in post #7:
Yes, if the company disability pension isn’t taxed, it is reported on FAFSA as untaxed income. If it is taxed then it’s already included in AGI and isn’t reported as untaxed income.
On the first page of the 1040 on line 20a it should show the total amount and the taxable amount of Social Security benefits. I would think that the untaxed Soc Sec would be the difference between the two figures.