Does my 1099 part-time income and pension count on FAFSA when my spouse has higher earnings?

They look at your prior-prior year taxes when filling out FAFSA. So for 2025-2026 aid year, they'll want your 2023 taxes. If your situation changed a lot since then you need to contact each financial aid office about a special circumstances appeal.

Yes, you absolutely need to report both your 1099 income and pension on the FAFSA. The FAFSA uses the federal tax return from two years prior (known as prior-prior year), so for the 2025-2026 FAFSA, they'll use your 2023 tax information. However, since your financial situation has significantly changed, you should be aware of a few things: 1. First, complete the FAFSA using the required tax year information (2023) 2. After submitting, contact each college's financial aid office to request a Professional Judgment review (also called Special Circumstances appeal) 3. Document your retirement, new income sources, and current financial situation 4. Each school handles these appeals differently, so follow their specific requirements Keep in mind that since your combined income is now higher than before, this may not result in more aid, but it's still important to have accurate information on file.

my kid is in college now and we had to do that special judgement thing last year. its a HUGE pain each school has totally different forms and requirements some wanted like 20 pages of documentation and others just had a simple form. start early!!

The FAFSA is SUCH A NIGHTMARE!!! I spent THREE WEEKS trying to figure out how to report my husband's business income last year and STILL got it wrong! Then they flagged us for verification and we had to submit like 50 documents. The whole system is designed to TORTURE parents!!! Why can't they just make this simpler???

Let me clarify some important points about your situation: 1. For the 2025-2026 FAFSA, you'll report information from your 2023 tax return (the prior-prior year rule). 2. Both your pension and 1099 income are considered taxable income that must be reported on the FAFSA, but only what appears on the tax return from 2023. 3. If your 2023 tax return doesn't reflect your current situation (retirement, new 1099 work), this won't initially affect your FAFSA results. 4. While your current higher income wouldn't normally qualify for a special circumstances appeal (those are usually for income reductions), it's still important to be transparent with the financial aid offices. 5. Your Student Aid Index (SAI, formerly EFC) will be calculated based on both spouses' incomes if you file jointly, but there's no separate weighting for who earns what within the marriage. I recommend completing the FAFSA accurately with 2023 information, then proactively contacting each school's financial aid office to inform them of your current situation. This maintains your integrity in the process and prevents surprises later.

I spent HOURS trying to get through to someone at the Federal Student Aid office with questions about my similar situation (retired but working part-time). After being on hold forever and getting disconnected twice, I finally used Claimyr (claimyr.com) and got connected to an actual person in about 10 minutes! They have this system that holds your place in line and calls you back when an agent is available. Saved me so much stress. There's a video showing how it works here: https://youtu.be/TbC8dZQWYNQ The agent explained that for the pension income question on FAFSA, you only report what was on your tax return for the year they're asking about (2023 for the upcoming FAFSA). Made things so much clearer than trying to figure it out from their confusing website!

they only care aobut the tax return from 2 yrs ago none of the other stuff matters

Just wanted to update everyone - I finally got through to someone at FSA who explained everything clearly. For 2025-2026 FAFSA, we'll use our 2023 tax info as many of you mentioned. I'll need to report special circumstances to each school individually - there's no standard form. Apparently, even though our income is higher now, they still want to know because it affects the overall financial picture (assets, retirement status, etc.). The agent recommended documenting the change with a simple letter explaining the retirement and new income sources, along with current pay stubs and pension statements. Thanks everyone for your help! This process is so much more complex than I expected.