<p>Making Work Pay was a new credit on the 1040 this year. I don’t know how it was calculated (we use Turbo Tax and I just recall thinking “how cool, another tax credit :)”). </p>
<p>I sure hope next year that the instructions are clearer. It is a line item on the 1040, so there should be a corresponding line item on the FAFSA, not just lump it into “untaxed income.”</p>
<p>Decision time is soon - I hope your D is able to nail down her choice soon :)</p>