Notice: Undefined index: articledetail in /home/utils/securefiles/securecode/utl_article.cls.php on line 639
Veterans' Untaxed Incomes and Worksheet B of the FAFSA | EdFed.com
College Loan Consolidation, Federal Loan Consolidation, Private Loan Consolidation, Student Loan Consolidation

America's Top Student Loan Provider




Veterans' Untaxed Incomes and Worksheet B of the FAFSA
By Surajit Sen Sharma
 
The W-2 statement often confuses veterans and leads to mistakes when filling out the FAFSA. Worksheet B of the FAFSA asks for the details of applicants' untaxed incomes. However, the same amount may also need to be reported as "earned income" elsewhere on the FAFSA. If the applicant has not filed tax returns, then figures that are present both on Worksheet B as well as under "earned income" can be doubly counted and lead to miscalculations of the applicant's need. This article tries to clear that confusion and provide guidance for reporting combat pay, subsistence, and other allowances like housing on the FAFSA.

Why combat pay needs special attention

Though combat pay does not fall within the applicable gross income of an applicant, it still requires attention for the following reasons:
  • It is taken into account when calculating need for the purpose of federal student aid.

  • It is counted as untaxed income on Worksheet B of the FAFSA when the applicant has filed his or her tax returns.

  • It should not be reported on Worksheet B if the applicant has not filed income tax returns—this will result in miscalculations.

  • It is required to be reported as "earned income" on the FAFSA.

  • The W-2 statement lists the amount of combat pay in Box 12 (Q) and, sometimes, in Box 14.
When filling out Worksheet B

When filling out Worksheet B of the FAFSA, it is important to keep in mind the following points:
  • Figures and amounts already included within the AGI should not be included again on Worksheet B. Doing so will lead to miscalculations which can affect the need that is calculated for the applicant.

  • Housing allowances (BAQ) and subsistence allowances (BAS) should be reported on Worksheet B of the FAFSA.

  • Check with school authorities when using your recent Leave and Earning Statement (LAS) to determine other types of untaxed income that you can include on Worksheet B.

  • Never report your SSA or Social Security Administration wages that are listed on the W-2 statement under code W.

  • Keep in mind that schools, under the HEROES Act, can exclude your untaxed earned income if it no longer reflects your income. Ask your school about any other privileges which you may be entitled to.
Why to be careful about Worksheet B

Income reported on Worksheet B is excluded from AGI. The less your AGI, the greater your chances for having a higher "need" and lower Expected Family Contribution (EFC). Ideally, you will be eligible for the simplified needs test or an automatic-zero EFC, allowing your entire education to be funded. If you need further explanation on issues regarding military pay, you can visit the MyPay website at mypay.dfas.mil/mypay.aspx.




 


Article Title : Veterans' Untaxed Incomes and Worksheet B of the FAFSA
Comment not found for this article.
 
Comment

Related articles
• FAFSA - Just The FAQs
• Filling Out the FAFSA
• Why is FAFSA So Important to College Students Looking For Student Loans
• Learning the A's - B's & C's of Student Loans

Share this story:
  • BlinkList
  • blogmarks
  • del.icio.us
  • Digg
  • Facebook
  • Google
  • Sphinn
  • MySpace
  • NewsVine
  • Simpy
  • StumbleUpon
  • Technorati
  • E-mail this story to a friend!
  • Print this article!
  • Faves
  • Furl
  • Netvouz
  • Slashdot
  • Spurl
  • Yahoo! Buzz
 



EdFed introduces… Awareness… Learnal
At, EdFed, we proudly introduce 'articles on student loans' and 'Learnal - the journal to learn from', our free newsletter on student loan management, which is sure to keep you informed of the latest events and happenings in the student loan market. To receive your copy of the above just use the RSS feed below and add this to your "My Yahoo", blogs, newstickers, and other similar channels accepting distributable content.
Click here to sign up for our Weekly Newswire now!

How EdFed Helped others!
Thank you so much for your quick action EdFed! I was worried about consolidating my loans in a timely manner and you guys handled things very efficiently. I will recommend you to all of my friends.
- Sheryl C.  Grand Rapids, MI
* Your Name: * Your E-mail Address:

We respect your privacy.
* Your Friend's name: * Your Friend's E-mail address:
Include a Message:
+ Privacy Policy

Student Loan Consolidation Info - How to Choose the Right Loan Company

This column is sponsored by Granted, America's top job search engine. The Career Resources column is presented by Granted, America's leading job search engine dedicated to getting people jobs.

Education is one of the most basic right of any human, but with the increase in prices and the costs involved in education this has made these rights turn into a privilege which very few can enjoy. Any normal person today in the whole of United States has to take an education loan at one point of time to pay for their education fees.

read more
CONSOLIDATION NEWS
Schools Will No Longer Receive Paper FAFSA Forms
(September 20, 2007)

news desk
CALCULATORS
Stafford Loan Payment Calculator
PLUS Loan Payment Calculator
Loan Consolidation Payment Calculator
Articles
Calculators
FAQs
Glossary of Terms
Loan Comparison Chart
Scholarship Search
Lowering your monthly payments helps to protect you in case your financial situation changes. Even if you are not having any trouble with your payments now, who knows what the future will bring?
US School Directory
Comprehensive List of Schools at which EdFed Assists Students.
EdFed is a FFELP lender with lender identification number 834241.
© Copyright 2019 EdFed. All Rights Reserved.

Home · About Us · Contact Us · News · Sitemap
Career Advice · Tell a Friend · Privacy Policy · Resume Service
Resume Distribution Service · Post Resume · Job Search Course
EDFED NEWSLETTERS
Sign up for the latest news on student loans.
Email Address:
+ Most Recent Newsletter
+ Newsletter Archives