Hello,
Our older daughter is entering 11th grade and will be applying to colleges next year, and I am trying to estimate whether and to what extent she may qualify for financial aid. We expect that she will mostly be applying to CSS PROFILE colleges. I have looked at a number of Net Price Calculators and other resources, and feel that I understand a fair amount about how these calculations are made. However, I have not been able to get a clear fix on how or whether the money that comes out of my salary for health insurance premiums will be treated. I work for the Federal government, and these premiums are covered by “premium conversion” meaning that while they are deducted from salary, the diverted funds are not counted as taxable income (nor will they show up as an itemized deduction). The language in the Net Price Calculators is vague enough that I am left unclear about whether this money is to be reported as an income/benefit item. Has anyone seen or received guidance on this situation? Is it likely to vary from one college to another? Thanks in advance.
Salary reductions for employer-sponsored health plans (or dental, vision, etc.) are not included as income when using NPCs or completing FA paperwork.