Just want to add my experience from last year - we had a similar retirement account mixup and I was panicking about the May 1st deadline too. Here's what worked for us: After the FAFSA correction showed "processed" on studentaid.gov (took about 4 days), I sent a brief email to each school's financial aid office with my daughter's student ID and explained we had corrected an asset reporting error that significantly lowered our SAI. I then followed up with phone calls 2-3 days later. Most schools were really understanding and confirmed they'd use the updated information. One school even expedited their review process when I explained our timeline concerns. The key was being specific about what changed (retirement account incorrectly reported as asset) and polite but persistent. Don't stress too much - schools deal with FAFSA corrections all the time, especially during peak season. Just make sure you follow up proactively rather than assuming they'll catch the update automatically. Good luck with your daughter's aid packages!

I'm going through this exact situation right now! My son is a high school senior and we just realized we made the same retirement account mistake on our FAFSA. Reading through everyone's experiences here has been so helpful - it sounds like the key is being proactive once the correction is processed. One thing I'm wondering about - for those who called the schools, did you find it better to call the main financial aid number or try to reach a specific counselor? Our state flagship has been impossible to get through to on the phone, but some of the smaller private schools have been more responsive. Also, has anyone had experience with schools actually changing an aid package after getting corrected information? I'm hoping our mistake correction will qualify my son for more aid, but I'm not sure if schools revisit packages they've already finalized or if we missed the boat. Thanks to everyone sharing their experiences - this is exactly the kind of real-world advice you can't find in the official guides!

As a newcomer to this community, I'm so thankful I found this comprehensive discussion! I'm currently working on my first FAFSA for my daughter and was completely confused about how to handle my 401(k) contributions of about $17,000 annually. After reading through everyone's detailed experiences, I now clearly understand that since these are pre-tax retirement contributions, they're already excluded from my AGI and I don't need to make any adjustments on the FAFSA - just report my AGI as it appears on my tax return. The distinction between qualified retirement plans (automatically handled) versus other types of deferred compensation (may need separate reporting) is exactly what I needed to grasp. I'm definitely going to follow the excellent advice about getting documentation from HR and reaching out to college financial aid offices proactively. It's incredible how much more confident I feel about this process now thanks to everyone sharing their real-world experiences and practical tips. This community has turned what felt like an overwhelming challenge into something actually manageable for us first-time FAFSA parents!

As a newcomer to this community, I'm incredibly grateful to have discovered this detailed discussion! I'm currently navigating my first FAFSA experience with my son and was completely overwhelmed by the income reporting section, particularly regarding my 403(b) contributions of about $11,000 annually. Reading through everyone's thorough explanations has been such a relief - I now understand that since these are pre-tax retirement contributions, they're already excluded from my AGI and no additional adjustments are needed on the FAFSA. The clear distinction everyone has made between qualified retirement plans (automatically handled through AGI) versus other types of deferred compensation (requiring separate reporting) is exactly what I needed to understand. I'm definitely planning to follow the excellent advice about obtaining HR documentation and proactively contacting financial aid offices at my son's prospective colleges. It's amazing how this supportive community has transformed what felt like an impossible bureaucratic maze into something actually manageable. Thank you all for sharing your real-world experiences and practical guidance - you've made this intimidating process so much less stressful for us first-time FAFSA parents!

This has been such a comprehensive discussion! As someone who works in financial aid administration, I can confirm that FAFSA absolutely uses AGI (line 11 of your 1040) as the starting point. The confusion often comes from the fact that after starting with AGI, the formula then makes various adjustments - adding back untaxed income like retirement contributions, subtracting certain allowances, etc. One thing I haven't seen mentioned yet is that if you have unusual circumstances that aren't captured well by the standard formula (like recent job loss, medical expenses, or other financial hardships), you can always request a professional judgment review with your school's financial aid office. They have the authority to make adjustments to your FAFSA data in certain situations, even though the base calculation starts with your AGI. Also, keep in mind that many schools use additional forms like the CSS Profile for institutional aid, which may consider factors beyond what FAFSA looks at. So don't lose hope if your federal aid eligibility seems limited based on AGI alone!

As someone who just went through this process with my oldest child, I can confirm what others have said - FAFSA definitely uses your AGI, not taxable income. What caught me off guard was how much the "add-backs" impacted our final calculation. Even though our 401k contributions lowered our AGI by about $24,000, most of that got added back as untaxed income on the FAFSA. One thing that really helped me understand the process was downloading the actual FAFSA formula guide from fsaid.ed.gov - it's like 30 pages of technical details, but if you're a numbers person like me, seeing exactly how they calculate everything step-by-step was really illuminating. It shows you precisely how they start with AGI and then all the adjustments they make from there. The key takeaway for planning purposes: focus on strategies that actually reduce your AGI AND don't get added back. Things like HSA contributions and certain business deductions can help, while traditional retirement contributions are mostly neutral for FAFSA purposes since they get added back anyway.

As a newcomer to this community, I want to add my thanks for this incredibly helpful thread! I was facing the exact same confusion with this FAFSA question for my daughter's renewal application. Like so many others here, I was initially thinking they wanted the total scholarship amount she received ($5,100), but after reading through all these detailed explanations, I now understand they're only asking for scholarship money that was actually reported as taxable income on our tax returns. Since her scholarship went entirely toward tuition and books, and we didn't report any of it as income on our 2022 taxes, I'll be entering 0. It's amazing how many families get tripped up by this poorly worded question - FAFSA really should make it clearer that they only want the "reported as income to the IRS" portion! This community has been such a valuable resource for navigating these confusing financial aid forms. Thank you to everyone who shared their knowledge and experiences!

As a newcomer to this community, I can't thank everyone enough for this incredibly detailed and helpful discussion! I was completely stuck on this same FAFSA question for my daughter's renewal application and was about to enter her full $4,200 scholarship amount, not realizing they only want the portion that was actually reported as taxable income on our tax returns. After reading through all these thorough explanations, I finally understand the crucial distinction between "total scholarships received" versus "scholarships reported as income to the IRS." Since my daughter's scholarship went entirely toward tuition and required fees, and we didn't report any of it as income on our 2022 taxes, I'll confidently enter 0. It's both reassuring and frustrating to see how many families struggle with this poorly worded question - FAFSA really should emphasize the "reported as income" aspect more prominently in their wording! This community has been such a lifesaver for navigating these confusing financial aid forms. Thank you to everyone who generously shared their knowledge and experiences to help fellow parents understand this tricky question!

I'm in a very similar situation - SAI of 18,500 with twins starting college next year. What I've learned from going through this process is that the SAI is really just the starting point for financial aid conversations, not the final word. A few things that helped us: - Many schools will still offer work-study even with higher SAIs - Look into state grant programs - some have higher income limits than federal aid - Consider community college for gen eds if the costs become unmanageable (my neighbor's daughter did 2 years CC then transferred and saved over $40k) The anxiety is real when you see that number, but don't panic yet. Wait to see what the actual financial aid packages look like from her schools. And definitely have her apply to a few "safety" schools that offer good merit aid - sometimes they'll offer more money to attract students who might otherwise go elsewhere. You've got this! The system is frustrating but there are usually more options than it initially appears.

I completely understand that sinking feeling when you see a higher SAI than expected! I went through something similar last year with my oldest. A few additional thoughts that might help: 1. Don't overlook state schools - many have excellent programs at much lower costs, and some offer automatic merit scholarships based on GPA/test scores regardless of need. 2. If your daughter is considering any particular majors, look into field-specific scholarships. STEM fields, teaching, healthcare, etc. often have dedicated funding sources. 3. Some schools have "middle-income" assistance programs specifically for families like yours who don't qualify for need-based aid but can't afford full pay either. 4. Consider having your daughter take a gap year to work and save money, or to apply to additional schools with better merit aid. I know it's not ideal, but it could save thousands in the long run. The multiple kids in college situation is definitely tough with the new FAFSA changes, but as others have mentioned, schools can still make adjustments. Hang in there - you'll figure out a path that works for your family!