A UTMA account Question

vballmom
Thu, 31 Mar 2011 14:32:06 +0000

It’s true that taking capital gains means the student reports income on FAFSA and pays taxes on that income. That’s a good thing to plan for prior to the 2nd half of the student’s junior year of high school. But it also might not be an issue; there’s a student income protection allowance of around $5000 for FAFSA, so if the capital gains + other student income is under that amount then it won’t affect EFC.