Untaxed Vs. Taxed

sara321
Fri, 21 Jul 2006 22:08:22 +0000

I was using the EFC calculator on this website. It has a space for taxed and untaxed income. Well, anyways, at first, I was putting all my income in the taxed, because I wasn’t paying attention, and my EFC came out to ~6,000. Really, that is not bad. I’ll take it.
But, then I realized there was an untaxed income space and that it applied to me. Half of my income will not be not taxed this year because I was/will be deployed oversees in a combat zone. I am not sure why it is not taxed, but it isn’t. So, I put half in there, and my EFC turned into 000. I can’t believe that that would be accurate. Why would that make such a huge difference?
I just can’t wrap my mind around it. Why would untaxed income not count for anything. It seems too good to be true. It is not taxed, and it does not count towards FAFSA? Realy, I am just curious. If anyone knows why please post.
Thanks, Sara