What are Parent’s Incomes
Parent’s Income is the critical piece in Financial Aid calculations. Incomes and benefits are assessed more (22 – 47%) than parent’s assets (5.64%) (see page : “WHAT IS EFC (EXPECTED FAMILY CONTRIBUTION) OR SAI (STUDENT AID INDEX)?”). The parent’s income are: any AGI (Adjusted Gross Income) reported on IRS 1040, 1040A, 1040EZ, and any untaxed income along with any benefits parents receive. Untaxed income and benefits include: earned income credit + child tax credits + this year’s child support + untaxed social security benefits paid to parents on behalf of children + Room/Board Allowances + this year’s retirement contributions (untaxed portion of 401(k), 403(b)) + this year’s untaxed retirement withdrawals + Veteran’s benefits + worker’s comp + + welfare benefits
What are the untaxed income and benefits that are not assessed?
All the grants, scholarships, loans, which students receive are not assessed as “untaxed income”. Any rollover pensions, food stamps, non-monetary gifts and assistance such as a car, stocks, FSA, etc.