Look closely at the FAFSA to find your benefit
Hiding midway through the FAFSA, you’ll find the question relevant to getting your AmeriCorps income to NOT count against you for financial aid. (If you are filling out the paper form, it’s Question 46d.)
When the header on the online form reads “Additional Financial Information.” Scroll down until you find the paragraph that reads:
Student grant and scholarship aid reported to the IRS in your adjusted gross income. Includes AmeriCorps benefits (awards, living allowance and interest accrual payments) as well as grant and scholarship portions of fellowships and assistantships.
Make sure you fill this out! It can help you get a better financial aid package than if you just leave it blank.
Though you won't get the satisfaction of doing the math yourself, when you submit your FAFSA, the financial aid office will subtract the amounts you list. This gives you a lower adjusted gross income.
In other words, if your only source of income in the previous calendar year is $9,000 from AmeriCorps or VISTA, then for financial aid purposes your income is $0, and you potentially could receive a better financial aid package than a student who earned $9,000 at a regular job. (Be aware that other factors may apply here–for example, if your parents still claim you as a dependent or if you have other assets.)
The potential benefits can stretch into two school years. The FAFSA you fill out for the 2010-11 school year is based on your 2008 taxes. Likewise, down the road, the FAFSA you fill out for the 2011-12 school year will be based on your 2010 taxes. If your term of service runs from 2009-10, you can potentially receive benefits from the "Additional Financial Information" section of the FAFSA over the next two school years. Even if you take a year off from school and service, you might still be able to benefit.
