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The EFC Formulas

By income, we mean total taxable and untaxed income.

This includes:

  • adjusted gross income (taxable income) reported on a tax return


  • earned income (taxable income) from work that is not reported on a tax return because the person is not required to file a tax return


  • untaxed income and benefits such as Earned Income Credit, deductible IRA and/or Keogh payments, untaxed portions of 401(k) and 403(b) plans, child support, welfare benefits, tax-exempt interest income, and untaxed portions of Social Security benefits, retirement benefits, and pensions
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