<p>Anyone know?</p>
<br>
<br>
<p>Ah yes…but it sure beats paying the dollars out of pocket that the scholarship covers!! Congratulations to your DD…she must have a terrific scholarship!!!</p>
<p>Azure - if you put $5390 on FAFSA they will expect you to submit a tax return because the income limit for submitting a tax return is $5350. The school will probably not process your financial aid until you submit a tax return. There is another thread somewhere recently with a student whose school would not process his FAFSA because he showed income high enough to require a tax return.</p>
<p>So my suggestion would be to put the amount less the cost of books. If the school has a problem with what you put they will contact you and you can get more expert advice.</p>
<p>swimcatsmom- Hi, I am new to this forum but have been reading your posts and they are very informative. I just need help understanding this question.</p>
<p>I am a parent filling out the FAFSA for my children. My daughter is in her 3rd year and my son will be starting his first year the fall of 2010. We need to get as much aid as we can and I want to be sure I filled out this form correctly. The 1040 form for 2009 year, I claimed the 1098T statement on my tax return as my children are still dependants. The question I need to ask and the exact wording on the FAFSA form for parent financial information is :</p>
<p>The Grant and Scholarship Aid reported to the IRS in your parents AGI includes grant & scholarships. The help question says I need to put in from IRS form 1040 AGI - Line 37 which is 85400.00 Is this correct? I just do not understand. Do I list this amount? Any advice would be so appreciated.</p>
<p>I’m confused - Just to clarify - was it taxable scholarship/grant income of your daughter’s that you reported on your tax return? If so then I don’t understand why you would do that. That is taxable income to your daughter and should be reported on her tax return, not yours. Even when claimed as a dependent on your tax return she can file her own tax return and get the standard deduction of $5700. So the first $5700 of the income on her return would not incur any taxes at all. The income over the $5700 would probably be at a much lower tax rate than yours as she would probably be in the 10% tax bracket. If you include her income on your return then it will lead to a much higher tax bill that if she filed her own return.</p>