What is Other Income on FAFSA - HSA Code W?

When filling out the Free Application for Federal Student Aid (FAFSA), you may encounter a section that asks about 'Other Income' with a specific code 'W' for Health Savings Account (HSA). This financial information is used to determine your eligibility for various forms of aid, including grants, loans, and work-study programs. It's essential to understand how your HSA contributions affect your financial aid package.

Here are some key points to consider:

• HSA contributions are typically considered part of your adjusted gross income (AGI) for tax purposes.
• Contributions made by you, your employer, or even family members can count towards your HSA total.
• When reporting 'Other Income' with code 'W' on FAFSA, it's crucial to include the total amount of HSA contributions you made during the tax year.

Understanding the impact of HSA contributions on your financial aid can help you accurately report your income and maximize your eligibility for assistance. Be sure to consult with a financial aid advisor if you have any questions about how to handle HSA contributions on your FAFSA.

When you're working on the Free Application for Federal Student Aid (FAFSA), it's important to pay attention to the section that asks about 'Other Income' using the designation 'W' for Health Savings Accounts (HSAs). This part of the application helps determine your eligibility for vital financial aid options, such as grants and low-interest loans.