Income and Asset Reporting Flashcards
6 cards from real FAFSA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Income and Asset Reporting flashcards as text
Which income is reported on the FAFSA as untaxed income?
Answer: Child support received
Child support received is reported as untaxed income on the FAFSA and is counted toward the household's financial resources.
How are 529 college savings plans owned by a parent reported on the FAFSA?
Answer: As parent assets
A 529 plan owned by a parent is reported as a parent asset on the FAFSA and is assessed at a lower rate than student assets.
Which of the following is considered a student asset on the FAFSA?
Answer: A savings account in the student's name
A savings or checking account in the student's name is considered a student asset and is assessed at 20% in the SAI formula.
Social Security benefits received by the student or parents are reported as:
Answer: Untaxed income if not included in AGI
Social Security benefits that were not included in the adjusted gross income are reported as untaxed income on the FAFSA.
What is the FAFSA treatment of a student's Uniform Gift to Minors Act (UGMA) or Uniform Transfer to Minors Act (UTMA) account?
Answer: Student asset assessed at 20%
UGMA/UTMA accounts in the student's name are reported as student assets on the FAFSA and assessed at the higher 20% rate.
Which of the following income sources does NOT need to be reported on the FAFSA?
Answer: Life insurance payouts
Life insurance payouts are generally not reported on the FAFSA as they are not considered income or an ongoing financial resource.