Inheritance windfall/High assets - LOW income

emeraldkity4
Sun, 18 May 2008 22:45:52 +0000

I found how you get around reporting the inheritance- depending on when you recieve it.

If you are going to receive it Fed 15th for example- make sure you fill out the FAFSA Feb 10th.
[College financial aid | CPA Journal, The | Find Articles at BNET.com](http://findarticles.com/p/articles/mi_qa5346/is_199806/ai_n21422893)



Generally, “income” is salary plus untaxed fringe benefits [e.g., 401(k) contribution] plus investment income less taxes (including the Medicare tax even though the form only states “Social Security tax”) as reported on the tax return filed for the year before the application is being filed. A small cost of living allowance based on the state of residence, family size, and age of the older parent is permitted to be subtracted from income. Assets generally include cash, savings, investments, rental and vacation real estate, and the net worth of any business-all as determined on the single day that the applicant happens to sign the FAFSA. Therefore, if the FAFSA is completed on February 1, 1998 and signed and filed on that date and the applicant suddenly inherits $1 million on February 2, 1998, the FAFSA as filed is true, correct, and complete and need not be amended to reflect the inheritance as an asset.