Worksheet B

Education Credits. The Hope Scholarship is available to students or parents who pay tuition and related expenses for attendance at least half time in a degree-granting program. Unlike a scholarship or a tax deduction, the Hope Scholarship is a tax credit, and can be subtracted directly from the total federal tax on a tax return. The Lifetime Learning Credit provides a tax credit to parents and/or students of up to 20% of the first $5,000 of total annual educational expenses, for up to $1,000 annually. Unlike the Hope Scholarship, the Lifetime Learning Credit does not require students to be in their first two years of study and does not require at least half time enrollment.

You may not claim both the Hope Scholarship and the Lifetime Learning Credit on your taxes for the same student in the same tax year. Enter the total amount of education credits (Hope and Lifetime Learning Credits) you received in 1999, from Form 1040 - line 44; or 1040A - line 29. For more information about these tax credits, visit the IRS web site at http://www.irs.gov/hot/not97-60.html

Child-support Payments. Report any child-support payments your parent(s) paid during 1999 because of divorce or separation as an exclusion. Do not include support for children in your parents' household, as reported in the "number in household" question. For purposes of the FAFSA, a child is a member of your parents' household if your parent(s) provide more than half of the child's support, whether or not the child lives with them.

Taxable Earnings from Work-study or Other Need-based Work Programs. Report earnings from work as income on the financial aid application in the AGI or income earned questions. However, if those earnings are part of a financial aid package and are intended as need-based financial assistance, they are also reported on Worksheet B.

AmeriCorps Awards. The National and Community Service Trust Act (commonly called the AmeriCorps Program) provides its members with full-time educational awards in exchange for community service. Any living allowance (but not earnings) received under this program should be reported on Worksheet B.

Grant and Scholarship Aid. Any grant or scholarship aid reported on your parents' 1999 income tax form (because it was in excess of tuition, fees, books, and required supplies) should be reported on Worksheet B.

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