Does pension income need to be reported on FAFSA? Confused about income reporting

Yes, pension income needs to be reported on the FAFSA. It's considered untaxed income and should be reported in the section specifically for untaxed income, not in the regular income section. There's a specific line for 'Payments to tax-deferred pension and retirement savings plans.' Make sure you're only reporting the untaxed portions. If your pension is fully taxable, it would already be included in your AGI from your tax return, which you'll also report on the FAFSA.

i reported my dads pension wrong last yr & it messed up our whole SAI calculation... had to do a correction form & everything... took forever 😩

This is one of the most confusing parts of the FAFSA! The way I understand it (and I've done this for 3 kids now), pension income breaks down like this: 1. TAXABLE pension income: Already included in your AGI on your tax return, so it's automatically counted when you enter your AGI on FAFSA. 2. UNTAXED pension income: Must be separately reported in the "Untaxed Income" section. Also, be careful about distinguishing between: - Pension DISTRIBUTIONS (money you're receiving now) - Pension CONTRIBUTIONS (money going into retirement) They're treated differently. Most people mess this up. Good luck!

Just to add some precise details: on the 2025-2026 FAFSA, you'll encounter the section titled "Additional Financial Information" - that's where untaxed pension income should be reported. Your AGI from your tax return (which includes the taxable portion) will be pulled automatically through the IRS Data Retrieval Tool if you use it (highly recommended). If you're doing the paper form, you'll need both your tax return AND your 1099-R to complete this correctly. The specific question asks about "untaxed portions of IRA distributions and pensions" - that's where your untaxed pension amount goes. Incorrect pension reporting is among the top 5 FAFSA errors that affect SAI calculation.

Anybody else notice that the pension question is worded differently on the new FAFSA compared to the old one? I swear they make these forms intentionally confusing. My daughter's financial aid was delayed for weeks because of this pension reporting issue last year...

FAFSA PISSES ME OFF SO MUCH!! Why can't they just ASK THE QUESTION CLEARLY?!? "Do we include pension income in our AGI or elsewhere?" SIMPLE QUESTION THAT NEEDS A SIMPLE ANSWER. But nooooo, they gotta make it complicated with 50 different sections and subsections. I messed up my pension reporting THREE YEARS IN A ROW and had different SAI calculations each time. The whole system is BROKEN.

Quick question - are you continuing to contribute to a pension plan or just receiving distributions? Because current contributions to retirement plans get reported differently than distributions you're receiving. This tripped me up when I was filling out my son's FAFSA.

wait does social security count the same way as pensions? my grandma helps with my college and gets both...

This is such a helpful thread! I'm in a similar situation with my pension income and was making the same mistake of being confused about where to report it. Just to make sure I understand correctly - if my pension is partially taxable, the taxable portion will show up in my AGI when I use the IRS Data Retrieval Tool, and then I need to manually enter the untaxed portion in the "Additional Financial Information" section under "untaxed portions of IRA distributions and pensions," right? I have my 1099-R form ready to go, but I want to double-check before I submit anything. Thanks everyone for sharing your experiences!

As someone who just went through this process with my daughter's FAFSA, I can confirm what others have said about the pension reporting. The key is definitely having your 1099-R form handy - it makes everything so much clearer! One thing I'll add is that if you're unsure about any amounts, it's better to slightly overestimate the untaxed portion rather than underestimate it. The financial aid office can always ask for clarification later, but underreporting income can cause bigger problems. Also, make sure to save a copy of your completed FAFSA before submitting - I learned this the hard way when I needed to reference what I had entered for a verification request. The whole process is stressful but you're asking the right questions, Bruno!

Just wanted to chime in as someone who works in financial aid at a community college - you're getting great advice here! One additional tip: when you're reporting that untaxed pension income, make sure you're only including the current year's distributions, not the total value of your pension account. I see this mistake frequently where people accidentally report their total pension balance instead of just the annual distributions. Also, if your pension includes any cost-of-living adjustments or one-time bonuses, those need to be included in your calculations too. The 1099-R will be your best friend for getting these numbers right. Keep all your documentation handy in case your son's school requests verification - about 30% of FAFSAs get selected for verification, and income discrepancies are one of the most common reasons.

I just want to say how grateful I am for all the detailed responses here! This community is amazing. I was honestly pretty overwhelmed when I started filling out the FAFSA, but reading through everyone's experiences and advice has made me feel so much more confident about reporting my pension income correctly. I'm going to gather my 1099-R form, use the IRS Data Retrieval Tool for the taxable portion, and carefully enter the untaxed portion in the Additional Financial Information section. It's reassuring to know that even if I make a small mistake, it's better to be conservative and have documentation ready. Thanks again to everyone who shared their knowledge - you're helping not just me but probably lots of other parents who are lurking and learning from this thread!

This thread has been incredibly helpful! I'm a newcomer to the FAFSA process and was completely lost about how to handle my spouse's pension income. Reading through everyone's experiences has given me so much clarity. Just to confirm my understanding: we need to use the IRS Data Retrieval Tool for the taxable portion (which will be included in our AGI), and then manually enter the untaxed portion in the "Additional Financial Information" section under "untaxed portions of IRA distributions and pensions." The 1099-R form will show us exactly how to split these amounts. I really appreciate how this community shares real experiences and practical tips - it makes such a difference when you're trying to navigate this complex process for the first time!

I'm just starting the FAFSA process for my daughter and was completely confused about pension reporting until I found this thread! My husband receives pension distributions from his former employer and I was panicking about how to report it correctly. After reading through all the advice here, I feel so much more prepared. The key points I'm taking away are: 1) Use the IRS Data Retrieval Tool for the taxable portion (included in AGI), 2) Manually enter the untaxed portion in "Additional Financial Information" under "untaxed portions of IRA distributions and pensions," and 3) Keep the 1099-R form handy to get the breakdown right. Thank you to everyone who shared their experiences - especially those who mentioned their mistakes so the rest of us can avoid them! This community is such a lifesaver for nervous parents like me.

As someone who just completed the FAFSA process for my twins, I can't stress enough how important it is to double-check your pension reporting! I made the mistake of including my entire pension distribution in the untaxed income section without realizing that the taxable portion was already being counted through my AGI via the IRS Data Retrieval Tool. This resulted in double-counting about $18,000 of income, which significantly inflated our Student Aid Index (SAI) and reduced their aid eligibility. I had to file a correction and provide additional documentation to the financial aid offices at both schools. It took about 6 weeks to get everything sorted out, and we almost missed some scholarship deadlines because of the delay. The lesson learned: carefully review your 1099-R to separate taxable vs. untaxed portions, and when in doubt, call the Federal Student Aid Information Center directly rather than guessing. Your attention to detail now will save you major headaches later!

As a newcomer to the FAFSA process, I'm finding this thread incredibly valuable! My wife recently started receiving pension distributions and I was completely overwhelmed trying to figure out how to report them correctly. Reading through everyone's experiences has been such a relief - especially seeing that I'm not the only one confused by this. The consensus seems clear: use the IRS Data Retrieval Tool for taxable portions (already included in AGI) and manually enter untaxed portions in the "Additional Financial Information" section. I'm definitely going to have our 1099-R ready and take the advice about being conservative rather than underestimating. Thank you to everyone who shared their mistakes and successes - it's making this intimidating process feel much more manageable for first-timers like me!

As another newcomer to the FAFSA process, I want to thank everyone for making this complex topic so much clearer! I'm helping my daughter with her application and was completely stumped by the pension income question. My husband receives distributions from his teacher's pension and I had no idea how to split it between taxable and untaxed portions. After reading through this thread, I feel confident about using the IRS Data Retrieval Tool for the taxable part (included in AGI) and manually entering the untaxed portion in the "Additional Financial Information" section. The warning about double-counting income really caught my attention - that's exactly the kind of mistake I would have made without knowing better. I'm definitely going to have our 1099-R form ready and call the Federal Student Aid Information Center if I have any doubts. It's so helpful to learn from everyone's experiences, both the successes and the mistakes. This community is such a blessing for anxious parents navigating this process for the first time!

As a newcomer to this community and the FAFSA process, I'm so grateful to have found this incredibly detailed discussion! My spouse and I are just starting our daughter's 2025-2026 FAFSA application, and I was completely lost about how to handle my recent pension distributions. Reading through everyone's experiences has been enlightening - especially the clear breakdown that taxable pension income gets captured through the IRS Data Retrieval Tool (as part of your AGI) while untaxed portions need to be manually entered in the "Additional Financial Information" section under "untaxed portions of IRA distributions and pensions." The cautionary stories about double-counting income and the resulting SAI calculation errors really opened my eyes to how critical accuracy is here. I'm definitely going to have my 1099-R form ready and follow the advice about being conservative with estimates. Thank you to everyone who shared both their successes and mistakes - this thread is going to save so many families from costly errors!