Submitted FaFsa Application late

Forum|Forum|4 years ago
March 3, 2022
1 reply
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Hello there, so this is the first time we are dealing with the FAFSA stuff. I submitted the 2021-2022 application too late around December of 2021. We paid for my classes back in August 2021 and I didn't submit until later in December and got a huge refund of $1329. How do calculate what to put on the educational expenses? I didn't use the refund for qualifying expenses. I used to on other things. Is it taxable?

Cynthiad66

If I am understanding you correctly, you received a refund for some of your education expenses paid. If so, you can only use the portion of education expenses that you personally paid. So reduce the amount you paid by the amount refunded to you. The $1,329.00 is not taxable.

It does not matter what you used the money for, it is what you received the money for that determines the taxability.

Employers are allowed to reimburse employees up to $5250 tax free. Anything over that is taxable and included as taxable income on your W-2. So, any expenses over $5250, including books, may be used to claim a tuition credit.

@zstaubitz1

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