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Anonymous

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Since: Feb 15, 2006
Posts: 1



(Msg. 1) Posted: Thu Feb 16, 2006 5:18 am
Post subject: FAFSA: qualified plan contribution counted twice on worksheet?
Archived from groups: soc>college>financial-aid (more info?)

When filling out the FAFSA Worksheet B, the first two questions are a
bit puzzling to me. This might not be a FAFSA issue at all, but a tax
prepation issue (I use TaxCut) which, I realize, is not germane here.
But maybe it is FAFSA.

The first question asks for parents' payments to tax-deferred pension
plans....reported on form W2 boxes 12a thru 12d, codes D, E, F, F, H, and S.

The second question asks for IRA deductions and payments to SEP, SIMPLE,
and Keogh and other qualified plans as reported on line 28 of IRS Form 1040.

My wife contributed to a qualified plan of code E, so we put the amount
found on her W2 into the first slot on the FAFSA worksheet.

I contributed to a SEP. But if I take the value from IRS Form 1040, it
includes my wife's contributions to qualified plans. I feel as if my
wife's contribution is being counted twice. Are these two back-to-back
questions on the FAFSA meant to refer to *mutually exclusive* amounts?
Is TaxCut incorrectly combining them on Form 1040 line 28?


Thanks,
Puzzled

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Steve Blank

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Since: Jun 25, 2003
Posts: 261



(Msg. 2) Posted: Thu Feb 16, 2006 10:39 am
Post subject: Re: FAFSA: qualified plan contribution counted twice on worksheet? [Login to view extended thread Info.]
Archived from groups: per prev. post (more info?)

The codes in W-2 Box 12 a-d are for tax-deferred conrtributions that
have already been deducted from the taxable wages in box 1.

Your SEP is not deducted from box 1 and gets listed in Line 28 of the
1040. Your wife's Box 12 deduction should not be appearing in that Line
28 total. If line 28 is totaling both yours and hers, either you made an
incorrect entry into the tax program, or you have found a bug. TaxCut
has you enter info from the w-2, and later asks about IRA etc.
contributions - your answer about IRAs should not include your wife's
because it was already captured in the w-2 questions.

On the FAFSA there is a question about retirement contributions withheld
from earnings - your wife's goes there.

The next question on the FAFSA is about SEPs and IRAs that you manually
deduct on the 1040 in lines 28 and/or 32. That's yours.


Steven B. Blank
College Financial Aid Consultants
29 Ives Hill Court
Cheshire, CT 06410
(203)250-7761


Anonymous wrote:
> When filling out the FAFSA Worksheet B, the first two questions are a
> bit puzzling to me. This might not be a FAFSA issue at all, but a tax
> prepation issue (I use TaxCut) which, I realize, is not germane here.
> But maybe it is FAFSA.
>
> The first question asks for parents' payments to tax-deferred pension
> plans....reported on form W2 boxes 12a thru 12d, codes D, E, F, F, H,
> and S.
>
> The second question asks for IRA deductions and payments to SEP, SIMPLE,
> and Keogh and other qualified plans as reported on line 28 of IRS Form
> 1040.
>
> My wife contributed to a qualified plan of code E, so we put the amount
> found on her W2 into the first slot on the FAFSA worksheet.
>
> I contributed to a SEP. But if I take the value from IRS Form 1040, it
> includes my wife's contributions to qualified plans. I feel as if my
> wife's contribution is being counted twice. Are these two back-to-back
> questions on the FAFSA meant to refer to *mutually exclusive* amounts?
> Is TaxCut incorrectly combining them on Form 1040 line 28?
>
>
> Thanks,
> Puzzled

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