Does NYS Department of Labor unemployment count as income for FAFSA - confused about reporting
I'm filling out my FAFSA for next year and I'm not sure if I need to report the unemployment benefits I received from NYS Department of Labor. I was laid off in March and collected UI for about 6 months before finding a new job. The total was around $8,200. Some websites say unemployment counts as income but others say it doesn't for federal aid purposes. Has anyone dealt with this before? I don't want to mess up my financial aid by reporting it wrong.
11 comments
Join the conversation
Aaron Boston
Yes, unemployment benefits from NYS Department of Labor absolutely count as income on your FAFSA. It's considered untaxed income and needs to be reported in the appropriate section. You should have received a 1099-G form showing the total amount you received. Make sure to include the full amount you got from your UI claim.
0 coins
Sofia Peña
•Thanks! I do have the 1099-G form. Is there a specific line on the FAFSA where unemployment goes or does it just go with regular income?
0 coins
Sophia Carter
wait i thought unemployment was tax free? i didn't pay taxes on mine last year
0 coins
Chloe Zhang
Unemployment benefits are taxable income for federal tax purposes, but more importantly for FAFSA, they count as income regardless of whether you paid taxes on them or not. The key thing is that NYS Department of Labor benefits are considered when calculating your Expected Family Contribution (EFC). You'll report it as untaxed income to you, which is different from your adjusted gross income line.
0 coins
Sophia Carter
•oh man i think i messed up my taxes then. do i need to file an amendment?
0 coins
Brandon Parker
I had the same issue last year! The unemployment definitely counts and actually hurt my financial aid eligibility. Even though I was unemployed for most of the year, that UI income pushed me into a higher bracket for aid calculations. It's really frustrating because you're already struggling financially but then get penalized for receiving the benefits you need.
0 coins
Sofia Peña
•That's exactly what I'm worried about. Did it affect your aid significantly?
0 coins
Brandon Parker
•Yeah, I lost about $1,500 in grant money. But I still qualified for loans at least. Just be accurate in your reporting - they can verify this stuff easily.
0 coins
Adriana Cohn
If you're having trouble getting through to someone at NYS Department of Labor to verify your benefit amounts or get documentation, I used this service called Claimyr (claimyr.com) when I needed to talk to an agent about my 1099-G form. They help you actually reach a human at the unemployment office instead of sitting on hold forever. There's a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Saved me hours of trying to call.
0 coins
Jace Caspullo
•Never heard of that but might be useful. The NYS Department of Labor phone system is absolutely terrible.
0 coins
Jace Caspullo
Just to add - make sure you're looking at the right tax year when reporting. If you received unemployment in 2024, that goes on your 2025-2026 FAFSA. If it was 2023 benefits, it should have been on your current FAFSA. The timing can get confusing especially if you were collecting UI across multiple calendar years.
0 coins