They ask a LOT of things they don’t use. Some colleges ask for the value of your cars, for example.
And do they define gifts as income? I’d want to see that specifically defined that way before I included it as a gift is not income for federal tax purposes and IMO is not income. If the same grandparents gave the student’s family a $10k painting, it wouldn’t be defined as income or more likely a $10k car to the student it wouldn’t be income.
I know they can define ‘income’ any way they want,but I wouldn’t infer that it is income unless specifically defined that way.
As I recall, the definition that the Profile gives for untaxed income is unnecessarily confusing but clear if you read it slowly. It’s something like “Don’t include gifts other than monetary gifts”. So, in other words, include monetary gifts.
It does make sense (albeit some may feel it’s unfair). If the grandparents give the parents a $75,000 gift their need is obviously substantially reduced in that year. They’d treat an inheritance the same way, even if it wasn’t taxed.
Many schools that meet full need want to get their institutional dollars into the hands of the most needy students. If grandma and grandpa are shelling out large sums of cash, then need is reduced.
Income is income in the eyes of the school, no matter how it comes to you and whether or not it’s taxed.