Parents Completing the FAFA Form: FAQs

Filling out the FAFSA can be confusing, especially when it comes to the financial section. Many parents wonder which income and assets to include, what “untaxed income” means, or whose information belongs on the form. This guide breaks down those tricky details in plain language, helping you avoid common mistakes and complete the FAFSA with confidence.

Retirement Accounts

Retirement Contributions (Tax-Deferred Income)

These are contributions made during the tax year to a retirement plan (like a 401(k) or IRA).They must be reported as part of income on the FAFSA, because they reduce your taxable income but still represent money you earned that year.

Examples (report these):

• 401(k), 403(b), or IRA contributions (found in Box 12 of your W-2 with codes D, E, F, G, H, or S)

• Tax-deferred pension contributions

Retirement Accounts (Existing Balances)

These are assets you already have saved in retirement accounts.They do NOT need to be reported as assets on the FAFSA.

Examples (do not report these):

• The total balance in your 401(k), 403(b), IRA, or pension account

• Annuities or retirement investment accounts

FAFSA item	Report it?	Example
Contributions made during the tax year	✅ Yes	$5,000 added to your 401(k)
Existing retirement account balances	❌ No	$120,000 in your 401(k) account

Income Types

✅ Untaxed income you do include on the FAFSA:

Type	Description	Where to find it
Child support received	Payments received for your child	Not in tax forms — report total received
Tax-deferred pension or retirement contributions	Money put into 401(k), 403(b), or similar (codes D, E, F, G, H, or S on W-2)	W-2 Box 12
IRA deductions and self-employed SEP/SIMPLE contributions	Contributions that lowered taxable income	IRS Form 1040 Schedule 1, lines 16 + 20
Workers’ compensation or disability benefits (non-taxed)	Payments from an insurance or employer plan, not SSI	Your records
Untaxed interest income	Tax-exempt interest (like from municipal bonds)	Form 1040, line 2a
Other untaxed income	Cash support, payments to bills on your behalf, etc.	Estimate from records

Untaxed income you do NOT include:

Excluded Item	Notes
Supplemental Security Income (SSI)	Do not report (different from disability insurance)
Earned Income Credit (EIC)	Excluded
Child Tax Credit / Additional Child Tax Credit	Excluded
Temporary Assistance for Needy Families (TANF)	Excluded
SNAP (Food Stamps)	Excluded
Free/reduced-price lunch, WIC, or housing assistance	Excluded
VA education benefits (GI Bill, etc.)	Excluded
Combat pay not taxable	Excluded
Foster care or adoption assistance payments	Excluded

Other FAQs

Do I report the value of my house?→ No — your primary residence is excluded.

How do I report 529 plans?→ If owned by the parent or student, include them as parent assets. Grandparent-owned 529s are not listed.

Do we report scholarships or grants already received?→ No — only future aid eligibility is considered.

What if I make a mistake?→ You can correct it later by logging back in to your FAFSA.

When will we get our aid estimate?→ After submission, you’ll receive a Student Aid Report (SAR) or FAFSA Submission Summary showing your eligibility. An email will be sent within 1-3 days.