One of the required documents in my IDOC account is this “verification worksheet - dependent student” in IDOC, same as this one: http://finaid.williams.edu/files/2015/02/1516_verif_wkst_dep.pdf at Williams College. From this Williams College site, http://finaid.williams.edu/forms-publications/, I am gathering that this might be related to FAFSA as it says “Federal Verification Worksheet – dependent student”.
Anyway, I am uncertain on 2 things on it.
First, on page 3:
It says" Verification of Parents’ Untaxed Income for 2014
Only complete and return this section if you answered “Yes” in Step 3.
A. Payments to tax-deferred pension and retirement savings
List payments (direct or withheld from earnings) to tax-deferred pension and retirement savings plans (e.g., 401(k) or 403(b) plans), including, but not limited to, amounts reported on W-2 forms in Boxes 12a through 12d with codes D, E, F, G, H, and S. "
My parents had contributions to 401(k), deducted from their monthly pay directly. Although there is only a code DD in box 12 in their W2, I still need to include their annual contribution to 401(k) as “untaxed income”, right?
Second, on page 4, it says "E. Other untaxed income
List the amount of other untaxed income not reported and not excluded elsewhere on this form. Include untaxed income such as workers’ compensation, disability, Black Lung Benefits, untaxed portions of health savings accounts from IRS Form 1040 Line 25, Railroad Retirement Benefits, etc.
Do not include any items reported or excluded in A – D above. In addition, do not include student aid, Earned Income Credit, Additional Child Tax Credit, Temporary Assistance to Needy Families (TANF), untaxed Social Security benefits, Supplemental Security Income (SSI), Workforce Investment Act (WIA) educational benefits, combat pay, benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion, or credit for federal tax on special fuels. "
Should "flexible spending accounts for medical expense " included or excluded in this “other untaxed income”?
How do you deal with these two items?