Does a Parent Report Cash Support They Receive As Untaxed Income On the FAFSA?

Award Year: 2024-25 KA-36686 Helpfulness Rating 48 page views

This guidance is specific to the 2024-25 award year and later.

Scenario: The parent of a dependent student is receiving cash support from her sister (the student's aunt). The money is used for household expenses.

Answer: No. A parent of a dependent student does not report any cash support the parent receives; it is not untaxed income for the parent. Starting with the 2024-25 award year under the FAFSA Simplification Act, cash support received by the student or paid on behalf of the student is not reported on the FAFSA, is not included in need analysis, and is not other financial assistance (OFA) when packaging the student with Title IV aid.

Student Aid Reference Desk: For additional information, try the Student Aid Reference Desk. It is a central hub of all the important financial aid resources you need with direct links to legislation, regulation, Dear Colleague Letters, and other ED and NASFAA references. It is updated on a rolling basis with the latest news and changes. 

AskRegs Q&As represent NASFAA's understanding of regulatory and compliance issues. They are FOR INTERNAL USE ONLY. While NASFAA believes AskRegs Q&As are accurate and factual, they have not been reviewed or approved by the U.S. Department of Education (ED). If you should need written confirmation of AskRegs information for audit or program review purposes, please contact your ED School Participation Division. NASFAA shall not be liable for technical or editorial errors or omissions contained herein; nor for incidental or consequential damages resulting from the furnishing, performance, or use of this material.