INSTRUCTIONS FOR COMPLETING THE FINANCIAL DATA SECTION OF THE APPLICATION
The Financial Data section of the application should be completed by parents, guardians, or applicant if independent. Independent is defined as one who is not claimed as a dependent by the parent/guardian for tax purposes. Information should be from a completed tax return or based on estimated information to be filed with the IRS.
- State of Residence is the state where the parent(s) or applicant, if applicant is independent, reside(s) and pay state income tax.
- Adjusted Gross Income can be found on IRS FORM 1040 and is gross income reduced or increased by specific adjustments allowed by law.
- Total Federal Tax Paid includes the total amount of federal income tax to be paid as reported on IRS FORM 1040. This is not the amount withheld from employee’s paychecks. (The amount withheld should be adjusted by any refund or additional taxes due.) Do not report state income tax.
- Total Income of parent(s) should be reported individually. Provide information for both natural parents, when possible. If the student resides with only one parent, financial information must be received from the parent who claims the child as a dependent for tax purposes. If a parent has remarried, the spouse’s information is required if the spouse is a legal guardian of the student, or claims the student as a dependent, or the student is included in the spouse’s benefit plan. If necessary, two Financial Data sections may be submitted by the student. A copy of the Financial Data section may be made in order for one to be completed by each parent.
- Untaxed Income and Benefits include any other income or benefits not included in the adjusted gross income figure. Do not include untaxed contributions to retirement plans.
- Medical and Dental Expenses include only those expenses not paid by insurance. Do not include premium payments.
- Total Cash, Checking, Savings, Cash Value of Stocks, etc., include liquid assets that can be used for educational expenses. Do not include IRA, 401K, or other retirement plan funds.
- Total Number of Family Members living in the household and primarily supported by the reported income includes dependent college students living away from home.
- Marital Status is the current status of the person from whom the financial information is submitted.
- Total Number of Family Members Attending College includes all family members attending a two- or four-year college, university, or vocational-technical school at least half-time. Be sure to include the applicant in this number.
NOTE: Any exceptions to providing financial information as instructed above must be submitted to Scholarship America in writing.
