FAFSA Income and Asset Reporting

Question 1

Which income is reported on the FAFSA as untaxed income?

Accepted Answer

Child support received

Answer

Regular wages

Answer

Inheritance received

Answer

Savings account interest

Question 2

How are 529 college savings plans owned by a parent reported on the FAFSA?

Accepted Answer

As parent assets

Answer

As student assets

Answer

They are not reported

Answer

As income in the year of distribution

Question 3

Which of the following is considered a student asset on the FAFSA?

Accepted Answer

A savings account in the student's name

Answer

Parent's retirement account

Answer

The family home

Answer

Parent's business equity

Question 4

Social Security benefits received by the student or parents are reported as:

Accepted Answer

Untaxed income if not included in AGI

Answer

Taxable income only

Answer

Parent assets

Answer

Not reported at all

Question 5

What is the FAFSA treatment of a student's Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account?

Accepted Answer

Student asset assessed at 20%

Answer

Parent asset assessed at 5.64%

Answer

Not reported

Answer

Counted as income in the year received

Question 6

Which of the following income sources does NOT need to be reported on the FAFSA?

Accepted Answer

Life insurance payouts

Answer

Wages from a summer job

Answer

Inheritance from a grandparent

Answer

Veterans non-education benefits