Peterson's FAABteachersmanual Page 24
Teacher's Manual
Page 24
Handout 5
Worksheet for EFC (Rough Draft)
Parents' Contribution
1. Income
a. Parents' adjusted gross income $
b. Untaxed income
-
Total income ( A )
2. Allowances
a. Federal income tax
+
b. Social Security taxes +
c. State, other taxes
+
d. Employment allowance +
e. Income protected +
Total allowances ( B )
3. Available income (Line A Line B=C)
4. Assets
a. Cash in bank accounts
+
b. Investment equity
+
c. Business net worth +
Net worth
5. Asset Protection Allowance
-
Discretionary Net Worth (DNW)
5. Available Assets
12% of DNW ( D )
7. Adjusted Available Income
(Line C + Line D)
8. Parents' Total Contribution
Contribution to Student
(
Parents' Contribution divided
by
number of family members in college
)
Student's Contribution
(Independent and dependent students)
