How to Report Untaxed Income when Applying for College

Overview
Going back to college after many years on the work force generally means that you will need to apply for financial aid. Student loans and grants can pay for your education if you are qualified. You are required to fill out several forms when applying for this funding. All of the financial aid paperwork you will fill out require you to disclose your income. Most of your income will be reflected on your tax returns. But, some types of income are not taxed, so, you will need to describe this income on separate documents.

Step 1
Apply for financial aid through your college admissions office. Fill out the free application for federal student aid (FAFSA) paperwork and turn it in to the admission's officer (see Resources).

Step 2
Wait for your untaxed income clarification form to come in the mail. Follow the instructions when filling out this form; be precise to clear up conflicting info on the FAFSA application.

Step 3
Fill out your name, address and phone number on the untaxed income clarification form. Add the identity number and the email address supplied to you by the college when you began the admissions process.

Step 4
Fill in the section on untaxed income of the student. Include any court ordered child support payments that you receive, incoming workers' compensation payments and untaxed pension monies that you are paid on a regular basis.

Step 5
Fill in the section on untaxed income information for your parents. This section includes the same information and should only be used if your parents are your sole means of support. Get exact information from them concerning untaxed income that they receive.

Tips
The phrase "conflicting information" on the FAFSA paperwork refers to the discrepancies between the amount of income you report and the amount shown on your supporting documentation.

Warnings
Fraudulent information on an FAFSA application is punishable as a felony under federal law. Never provide false information on these, or any other documents. Never omit pertinent information from your financial aid paperwork.

Reference
Bowling Green State University; Untaxed Income Clarification Form; BGSU Student Financial Aid; 2010-2011