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Student/Spouse Combat Pay Or Special Combat Pay - Financialaid Okstate
Get Student/Spouse Combat Pay Or Special Combat Pay - Financialaid Okstate
Ncial Aid must, by federal regulations, verify the information on your 2011-2012 Free Application for Federal Student Aid (FAFSA). Please provide the information requested below for you (and your spouse, if you are married). We cannot determine aid eligibility or disburse funds until all requested documents are received and reviewed. In some cases, we must submit changes in information to the U.S. Department of Education (FAFSA processor); at that time, you will receive communication from our of.
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W-2 FAQ
This is question 40e on the Free Application for Federal Student Aid (FAFSA®) PDF. Enlisted persons and warrant officers— Combat pay is nontaxable, and you should report zero for combat pay or special combat pay.
Combat pay, although excluded from gross income, is still considered during the need analysis for federal student aid purposes. It is reported as untaxed income on Worksheet B of the FAFSA. It should also be included in the earned income figures reported on the FAFSA.
You don't claim an exclusion for combat pay on your return. The excludable amount shouldn't be in your W-2, Box 1 wages. If an excludable amount is in your Box 1 wages, you should get a corrected W-2. Nontaxable combat pay will usually be shown on your W-2, Box 12 with code Q.
Combat pay is a tax-exempt monthly stipend paid to all active members of the U.S. armed services who are serving in designated hazardous zones. It is paid in addition to the person's base pay.
This is question 88e on the FAFSA. The response indicates the total amount of taxable combat pay or special combat pay that the student's parents received in 2021. Only enter the amount that was taxable and included in the adjusted gross income.
If you spend a single qualifying day in the combat zone, your pay for the entire month is excluded from taxable income. Bonuses and special pays are also excluded from taxable income if within the previously stated limitations and earned in the same month in which you served in a combat zone.
This is question 88e on the FAFSA. The response indicates the total amount of taxable combat pay or special combat pay that the student's parents received in 2021. Only enter the amount that was taxable and included in the adjusted gross income.
It is shown separately in box 12. Enter combat pay in box 12 with code Q.
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