ChapterTitle: Discretionary Verification
Section: Verifying Untaxed Income and Benefits
Generally, "welfare benefits" include the untaxed income that
individuals receive from federal or state public assistance programs,
such as Supplemental Security Income (SSI) and Aid to Families
with Dependent Children (AFDC). Receipt of such benefits can be
verified by contacting the paying offices, or through documentation
available from the applicant.
These benefits can be verified through the applicant's employer or
with documentation available from the applicant. Check to see if
the applicant's workers' compensation benefits have covered medical
expenses claimed by the applicant.
Veterans Noneducational Benefits
These benefits result from such programs as Death Pension or
Dependency and Indemnity Compensation (DIC) and can be verified
through the Department of Veterans' Affairs or through
documentation available from the applicant.
Housing, Food, and Other Living Allowances
This includes only allowances paid as job compensation to members
of the military, clergy, etc. Rent subsidies for low-income housing
should not be counted as income. In verifying this amount, you
should include cash payments and assess the cash value of the
Any income or any money paid on behalf of a dependent student's
parents or an independent student (or spouse) should be considered
untaxed income. For examples, refer to the Counselor's Handbook.
Untaxed Portion of Pensions
This amount can be verified from IRS Form 1040 or 1040a, line 10a
minus 10b, and line 11a minus 11b.
Tax-exempt Interest Income
This amount can be verified from IRS Form 1040 or 1040a, line 8b.
Other Untaxed Income and Benefits
This would include benefits such as Black Lung Benefits, Refugee
Assistance, and untaxed portions of Railroad Retirement Benefits.
To verify these income and benefit amounts, you may accept a
statement, signed by the applicant, detailing the sources and the
amounts received. (If the applicant completed a verification
worksheet, he or she may have included this statement.)