I was hoping one of the financial aid professionals on this forum could give me a definitive answer, because I'm confused about the wording of the instructions for FAFSA.
My DH has been approved for Social Security Disability payments (Parkinson's Disease). Social Security dispersed a lump sum of payments for a "lookback period" of about a year (I think) plus ongoing monthly benefit checks. My understanding is that because I am still earning decent income that some of DH's benefits will be subject to income taxes, and some of it won't.
My question regarding FAFSA is this: I did a little online searching and found that there is a line on the FAFSA that requires you to enter untaxed benefits "such as worker's compensation or disability benefits."
However the next line in the instructions says, "Don't include student aid, earned income credit, additional child tax credit, welfare payments, untaxed Social Security benefits". (I think this was question 94 of the 2009-10 FAFSA).
So I'm confused since these instructions seem to conflict with each other. Unless the disability benefits mentioned first are from private disability insurance???
Thanks for any insight you can give me. I'm trying to figure out how much of the lump sum should be reserved for taxes and possible reductions in fin aid next year.
ETA: Also, DS will be getting a lump sum check of about $1K. Would this also be reportable?