Asset Net Worth

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Income Taxes
Foreign Income
Asset Net Worth

Information from any of the following 1999 income tax forms may be listed on the FAFSA in the same manner as U.S. tax information: the income tax return required by the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, the Marshall Islands, the Federated States of Micronesia, or Palau. The amounts on these returns are already reported in U.S. dollars.

Income earned in a foreign country is treated the same as income earned in the U. S. if taxes were paid to the central government of that country. You should report the value of the foreign income in U.S. dollars (using the exchange rate at the time of application) in both the "Adjusted Gross Income" line item and in the "Income Earned From Work" line item. Information about exchange rates can be found by searching on line, using the key words "exchange rates."

Include the value of any taxes paid to the foreign government in the "U.S. Income Tax Paid" line item. If income earned in the foreign country was not taxed by the central government of that country, the income should be reported as untaxed income on the FAFSA.

In many cases, if you file a return with the IRS for a year in which foreign income was earned, a portion of the foreign income can be excluded on IRS Form 2555 for U.S. tax purposes. The figure reported on line 43 of Form 2555 (or line 18 of Form 2555EZ) should be reported as untaxed income on Worksheet A on page 8 of the paper FAFSA. The final total for the Form 2555 must not be reported as untaxed income because it contains other exclusions.

Courtesy of: "Completing the 2000-2001 FAFSA," from the U.S. Department of Education