<p>My father has retired, but my mom is still working. if I wanted to apply for financial aid would the money he gets from retirement be counted, or not?</p>
<p>it would be counted, you should still apply, wont hurt u.</p>
<p>It depends. Any untaxed federal pension is not reported on FAFSA so would not be counted as income for the FAFSA EFC. However any part of the federal pension that is taxed is included in the AGI on the tax return so is counted as income for the FAFSA EFC.</p>
<p>How much, if any, federal pension is taxable income depends on how much other income your parents have. There is a set of IRS rules that as other income gets higher more and more of the federal pension becomes taxable income. For last year it was when one-half of your social security benefits plus your other gross income and any tax-exempt interest was more than $25,000 ($32,000 if married filing jointly) then parts of the SS benefits started becoming taxable income.</p>
<p>Any private pension income is taxable income so will be included in the AGI and will affect the EFC.</p>