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<p>Yes, it looks like your total income will be over $5500 this year. The $2,000 will be part of your adjusted gross income for taxes and FAFSA. Yes, it sounds like you do have 2 employers. Not a big deal.</p>
<p>No, half of the $5500 will not be added to your EFC. Only 50% of the amount over the student income threshold is assessed at 50%. If you take the time to work through the worksheet on pg 10 of that link, it’ll become clear. For example:</p>
<p>Total Income = $6,000
Less:
Federal Income Tax Paid $500 (you would use the actual amt from your tax return)
State Tax Allowance 60 (Washington state is 1%, based on the table A7)
SS Tax Allowance 459
Income Protection 3750
Total Allowances 4769</p>
<p>Available Income 1231
Assessment Rate .5
Student Contribution 615 </p>
<p>So, the $615 is what would be added to your 10/11 FAFSA EFC - assuming you don’t qualify for the automatic 0. Every dollar of your gross earnings above $6K in the example I gave would have a income protection allowance of 8.65% (1% WA state plus 7.65% FICA) plus your actual federal tax rate. The net amount would be subject to the 50% assessment.</p>