<p>I am filling out a reduction in untaxed income form for my S who is entering his fourth year. One of the questions, but not the reason for the request by us is Education credits received in 2009. I think this corresponds to question 94b on the SAR, which I have as $500 because we took the LLC on our 2008 taxes. Also payable this year though was our Hope credits from 2006 and 2007 thanks to some screw ups by me. I filed ammended returns early in 2009 for both years.</p>
<p>Do I put 500 in box for the 2008 return or 4100 for all three? The instructions on the reduction form say to list all education credits received or expected to be received in 2009.</p>
<p>I assume if the answer is 4100, it’s going to raise some red flags there, but I have the paperwork to back it up. We never got to put those on the previous year’s FAFSAs, so it’s not double dipping or anything.</p>
<p>You need to answer the question by providing the number that is on the 2008 1040 line that is referenced on the FAFSA. You may not use any other number. So … if that number is $4100, that’s what you put down. If you are amending returns for other years … or if you are putting the previous years’ credit on a different line … you don’t get to include the money on the 2009-10 FAFSA. We go right off the 2008 1040 when verifying.</p>
<p>kelsmom,</p>
<p>First off, thank you for answering. I appreciate having you on the board.</p>
<p>To clarify, this is not for verification (which has already been done). We lost child support for our younger daughter this year upon her graduation. As a result, we are filing a special circumstances form. The section in question is listed as Estimated 2009 Income. In it it specifically states “to calculate an estimate, include what you actually received from Jan 1 through today; add what you expect to receive from today through Dec 31.” There is a box listed as "Education Credits (Hope and LL). Clearly, we received these credits for 2006 and 2007 in 2009, much as a job I had which had almost of the work done in 2008 was paid in 2009. All that money shows up in 2009 because that’s when it was received.</p>
<p>Based on those questions, do you still think that same way? I certainly would not be lying to say I received these credits between Jan 1 and Dec 31, 2009. Again, thanks for your input.</p>
<p>Since there are no clear-cut rules for your situation, and because it is going to be professional judgment, anyway, just include it & make a notation of why it is what it is. The FAO will determine how he/she thinks it should be treated … you act as if it will be used, and they will decide what to do with it!</p>