Posted Date: April 13, 2010

Author:  Jennifer Douglas, General Manager, Student Aid Awareness and Applicant Services Channel, Federal Student Aid

Subject: Correction to Final 2010-2011 Free Application for Federal Student Aid (FAFSA)

Summary: Correction to Final 2010-2011 Free Application for Federal Student Aid (FAFSA)

The 2010-2011 FAFSA has been updated to correct two issues. 

Issue One
Recent legislation created the American Opportunity Credit in addition to the current Hope and Lifetime education credits. Many tax payers will be claiming this credit instead of Hope/Lifetime; so we have updated the FAFSA to reflect this change. This change is reflected in 44a and 92a.

Previous Wording – Education credits (Hope and Lifetime Learning tax credits) from IRS Form 1040—line 49 or 1040A—line 31.

Corrected Wording – Education credits (American Opportunity, Hope and Lifetime Learning tax credits) from IRS Form 1040—line 49 or 1040A—line 31.

Issue Two 
Combat pay should not be included in other untaxed income not reported elsewhere, whether or not the person was a tax filer; so we have removed the reference “if you are not a tax filer” This change is reflected in 45i and 93i.

Previous Wording – Other untaxed income not reported in items 45a through 45h, such as workers’ compensation, disability, etc. Don’t include student aid, earned income credit, additional child tax credit, welfare payments, untaxed Social Security benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, combat pay (if you are not a tax filer), benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion or credit for federal tax on special fuels.

Corrected Wording – Other untaxed income not reported in items 93a through 93h, such as workers’ compensation, disability, etc. Don’t include student aid, earned income credit, additional child tax credit, welfare payments, untaxed Social Security benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, combat pay, benefits from flexible spending arrangements (e.g., cafeteria plans), foreign income exclusion or credit for federal tax on special fuels.

The attached PDF has the correct references and we will be updating FAFSA on the Web as appropriate. However, we will not be able to correct printed versions of the FAFSA.

We apologize for any inconvenience to you and your students.

Attachments/Enclosures:

2010-11 FAFSA - English (updated April 2010) in PDF Format, 862 KB, 10 Pages

2010-11 FAFSA - Spanish (updated April 2010) in PDF ormat, 907 KB, 10 Pages

   

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