{"identifier":"/us/usc/t20/s1087vv","title":20,"num":"\u00a7\u202f1087vv.","heading":"Definitions","text":"\u00a7\u202f1087vv.\nDefinitions\nIn this part:\n(a)\nTotal income\nThe term \u201ctotal income\u201d means the amount equal to adjusted gross income for the second preceding tax year plus untaxed income and benefits for the second preceding tax year minus excludable income for the second preceding tax year. The factors used to determine total income shall be derived from the Federal income tax return, if available, except for the applicant\u2019s ability to indicate a qualified rollover in the second preceding tax year as outlined in\nsection 1090 of this title\n(b)\nUntaxed income and benefits\nThe term \u201cuntaxed income and benefits\u201d means\u2014\n(1) deductions and payments to self-employed SEP, SIMPLE, Keogh, and other qualified individual retirement accounts excluded from income for Federal tax purposes, except such term shall not include payments made to tax-deferred pension and retirement plans, paid directly or withheld from earnings, that are not delineated on the Federal tax return;\n(2) tax-exempt interest income;\n(3) untaxed portion of individual retirement account distributions;\n(4) untaxed portion of pensions; and\n(5) foreign income of permanent residents of the United States or United States citizens exempt from Federal taxation, or the foreign income for which such a permanent resident or citizen receives a foreign tax credit.\n(c)\nVeterans and veterans\u2019 education benefits\n(1) The term \u201cveteran\u201d has the meaning given the term in\nsection 101(2) of title 38\n(2) The term \u201cveterans\u2019 education benefits\u201d means veterans\u2019 benefits under the following provisions of law:\n(A) Chapter 103 of title 10 (Senior Reserve Officers\u2019 Training Corps).\n(B) Chapter 106A of title 10 (Educational Assistance for Persons Enlisting for Active Duty).\n(C) Chapter 1606 of title 10 (Selected Reserve Educational Assistance Program).\n(D) Chapter 1607 of title 10 (Educational Assistance Program for Reserve Component Members Supporting Contingency Operations and Certain Other Operations).\n(E) Chapter 30 of title 38 (All-Volunteer Force Educational Assistance Program, also known as the \u201cMontgomery GI Bill\u2014active duty\u201d).\n(F) Chapter 31 of title 38 (Training and Rehabilitation for Veterans with Service-Connected Disabilities).\n(G) Chapter 32 of title 38 (Post-Vietnam Era Veterans\u2019 Educational Assistance Program).\n(H) Chapter 33 of title 38 (Post-9/11 Educational Assistance).\n(I) Chapter 35 of title 38 (Survivors\u2019 and Dependents\u2019 Educational Assistance Program).\n(J) Section 903 of the Department of Defense Authorization Act, 1981 (\n10 U.S.C. 2141\n(K) Section 156(b) of the \u201cJoint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes\u201d (\n42 U.S.C. 402\n(L) The provisions of chapter 3 of title 37, related to subsistence allowances for members of the Reserve Officers Training Corps.\n(d)\nIndependent students and determinations\nThe term \u201cindependent\u201d, when used with respect to a student, means any individual who\u2014\n(1) is 24 years of age or older by December 31 of the award year;\n(2) is, or was at any time when the individual was 13 years of age or older\u2014\n(A) an orphan;\n(B) a ward of the court; or\n(C) in foster care;\n(3) is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual\u2019s State of legal residence;\n(4) is a veteran of the Armed Forces of the United States (as defined in subsection (c)) or is currently serving on active duty in the Armed Forces for other than training purposes;\n(5) is a graduate or professional student;\n(6) is married and not separated;\n(7) has legal dependents other than a spouse;\n(8) is an unaccompanied homeless youth or is unaccompanied, at risk of homelessness, and self-supporting, without regard to such individual\u2019s age; and\n(9) is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances pursuant to\n(A) human trafficking, as described in the Trafficking Victims Protection Act of 2000 (\n22 U.S.C. 7101\n(B) legally granted refugee or asylum status;\n(C) parental abandonment or estrangement; or\n(D) student or parental incarceration.\n(e)\nExcludable income\nThe term \u201cexcludable income\u201d means\u2014\n(1) an amount equal to the education credits described in paragraphs (1) and (2) of\nsection 25A(a) of title 26\n(2) if an applicant elects to report it, college grant and scholarship aid included in gross income on a Federal tax return, including amounts attributable to grant and scholarship portions of fellowships and assistantships and any national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (\n42 U.S.C. 12511\n(3) income earned from work under part C of this subchapter.\n(f)\nAssets\n(1)\nIn general\nThe term \u201cassets\u201d means the amount in checking and savings accounts, time deposits, money market funds, investments, trusts, stocks, bonds, derivatives, securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), the annual amount of child support received and the net value of real estate, vacation homes, income producing property, and business and farm assets, determined in accordance with\nsection 1087rr(c) of this title\n(2)\nExclusions\nWith respect to determinations of need under this subchapter, the term \u201cassets\u201d shall not include the net value of the family\u2019s principal place of residence.\n(3)\nConsideration of qualified education benefit\nA qualified education benefit shall be considered an asset of\u2014\n(A) the student if the student is an independent student; or\n(B) the parent if the student is a dependent student and the account is designated for the student, regardless of whether the owner of the account is the student or the parent.\n(4)\nDefinition of qualified education benefit\nIn this subsection, the term \u201cqualified education benefit\u201d means\u2014\n(A) a qualified tuition program (as defined in\nsection 529(b)(1)(A) of title 26\n(B) a Coverdell education savings account (as defined in\nsection 530(b)(1) of title 26\n(g)\nNet value\nThe term \u201cnet value\u201d means the market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets.\n(h)\nTreatment of income taxes paid to other jurisdictions\n(1) The tax on income paid to the Governments of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau under the laws applicable to those jurisdictions, or the comparable tax paid to the central government of a foreign country, shall be treated as Federal income taxes.\n(2) References in this part to title 26, Federal income tax forms, and the Internal Revenue Service shall, for purposes of the tax described in paragraph (1), be treated as references to the corresponding laws, tax forms, and tax collection agencies of those jurisdictions, respectively, subject to such adjustments as the Secretary may provide by regulation.\n(i)\nOther financial assistance\n(1) For purposes of determining a student\u2019s eligibility for funds under this subchapter, other financial assistance not received under this subchapter shall include all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student\u2019s need is made, including national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990 (\n42 U.S.C. 12511\n(2) Notwithstanding paragraph (1), a tax credit taken under\nsection 25A of title 26\n1\n1 So in original. Probably should be \u201csection 1087kk(3)\u201d.\n(3) Notwithstanding paragraph (1) and section 1087\nll\n(4) Notwithstanding paragraph (1), payments made and services provided under part E of title IV of the Social Security Act [\n42 U.S.C. 670\n42 U.S.C. 677\n1\n(5) Notwithstanding paragraph (1), emergency financial assistance provided to the student for unexpected expenses that are a component of the student\u2019s cost of attendance, and not otherwise considered when the determination of the student\u2019s need is made, shall not be treated as other financial assistance for purposes of section 1087kk(a)(3)\n1\n(j)\nDependents\n(1) Except as otherwise provided, the term \u201cdependent of the parent\u201d means the student who is deemed to be a dependent student when applying for aid under this subchapter, and any other person who lives with and receives more than one-half of their support from the parent (or parents) and will continue to receive more than half of their support from the parent (or parents) during the award year.\n(2) Except as otherwise provided, the term \u201cdependent of the student\u201d means the student\u2019s dependent children and other persons (except the student\u2019s spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.\n(k)\nFamily size\n(1)\nDependent student\nExcept as provided in paragraph (3), in determining family size in the case of a dependent student\u2014\n(A) if the parents are not divorced or separated, family members include the student\u2019s parents, and any dependent (within the meaning of\nsection 152 of title 26\nsection 24 of title 26\n(B) if the parents are divorced or separated, family members include the parent whose income is included in computing available income and any dependent (within the meaning of\nsection 152 of title 26\nsection 24 of title 26\n(C) if the parents are divorced and the parents whose income is so included are remarried, or if the parent was a widow or widower who has remarried, family members also include, in addition to those individuals referred to in subparagraph (B), the new spouse and any dependent (within the meaning of\nsection 152 of title 26\nsection 24 of title 26\n(D) if the student is not considered as a dependent (within the meaning of\nsection 152 of title 26\nsection 24 of title 26\n(2)\nIndependent student\nExcept as provided in paragraph (3), in determining family size in the case of an independent student\u2014\n(A) family members include the student, the student\u2019s spouse, and any dependent (within the meaning of\nsection 152 of title 26\nsection 24 of title 26\n(B) if the student is divorced or separated, family members do not include the spouse (or ex-spouse), but do include the student and any dependent (within the meaning of\nsection 152 of title 26\nsection 24 of title 26\n(3)\nProcedures and modification\nThe Secretary shall provide procedures for determining family size in cases in which information for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter has changed or does not accurately reflect the applicant\u2019s current household size, including when a divorce settlement only allows a parent to file for the Earned Income Tax Credit available under\nsection 32 of title 26\n(l)\nBusiness assets\nThe term \u201cbusiness assets\u201d means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.\n(m)\nHomeless youth\nThe term \u201chomeless youth\u201d has the meaning given the term \u201chomeless children and youths\u201d in\nsection 11434a of title 42\n(n)\nUnaccompanied\nThe terms \u201cunaccompanied\u201d, \u201cunaccompanied youth\u201d, or \u201cunaccompanied homeless youth\u201d have the meaning given the term \u201cunaccompanied youth\u201d in\nsection 11434a of title 42","url":"https://projectusc.org/usc/t20/s1087vv.html","content":[{"t":"sec","id":"/us/usc/t20/s1087vv","children":[{"t":"num","text":"\u00a7\u202f1087vv."},{"t":"heading","text":"Definitions","tail":"\n"},{"t":"chapeau","text":"In this part:"},{"t":"subsec","id":"/us/usc/t20/s1087vv/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Total income"},{"t":"content","children":[{"t":"p","text":"The term \u201ctotal income\u201d means the amount equal to adjusted gross income for the second preceding tax year plus untaxed income and benefits for the second preceding tax year minus excludable income for the second preceding tax year. The factors used to determine total income shall be derived from the Federal income tax return, if available, except for the applicant\u2019s ability to indicate a qualified rollover in the second preceding tax year as outlined in ","children":[{"t":"ref","text":"section 1090 of this title","href":"/us/usc/t20/s1090","tail":" or foreign income described in subsection (b)(5)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Untaxed income and benefits"},{"t":"chapeau","text":"The term \u201cuntaxed income and benefits\u201d means\u2014"},{"t":"para","id":"/us/usc/t20/s1087vv/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" deductions and payments to self-employed SEP, SIMPLE, Keogh, and other qualified individual retirement accounts excluded from income for Federal tax purposes, except such term shall not include payments made to tax-deferred pension and retirement plans, paid directly or withheld from earnings, that are not delineated on the Federal tax return;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/b/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" tax-exempt interest income;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/b/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" untaxed portion of individual retirement account distributions;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/b/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" untaxed portion of pensions; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/b/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" foreign income of permanent residents of the United States or United States citizens exempt from Federal taxation, or the foreign income for which such a permanent resident or citizen receives a foreign tax credit.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Veterans and veterans\u2019 education benefits"},{"t":"para","id":"/us/usc/t20/s1087vv/c/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" The term \u201cveteran\u201d has the meaning given the term in ","children":[{"t":"ref","text":"section 101(2) of title 38","href":"/us/usc/t38/s101/2","tail":" and includes individuals who served in the United States Armed Forces as described in sections 101(21), 101(22), and 101(23) of title 38."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/c/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" The term \u201cveterans\u2019 education benefits\u201d means veterans\u2019 benefits under the following provisions of law:"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" Chapter 103 of title 10 (Senior Reserve Officers\u2019 Training Corps).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" Chapter 106A of title 10 (Educational Assistance for Persons Enlisting for Active Duty).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" Chapter 1606 of title 10 (Selected Reserve Educational Assistance Program).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" Chapter 1607 of title 10 (Educational Assistance Program for Reserve Component Members Supporting Contingency Operations and Certain Other Operations).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/E","children":[{"t":"num","text":"(E)"},{"t":"content","text":" Chapter 30 of title 38 (All-Volunteer Force Educational Assistance Program, also known as the \u201cMontgomery GI Bill\u2014active duty\u201d).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/F","children":[{"t":"num","text":"(F)"},{"t":"content","text":" Chapter 31 of title 38 (Training and Rehabilitation for Veterans with Service-Connected Disabilities).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/G","children":[{"t":"num","text":"(G)"},{"t":"content","text":" Chapter 32 of title 38 (Post-Vietnam Era Veterans\u2019 Educational Assistance Program).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/H","children":[{"t":"num","text":"(H)"},{"t":"content","text":" Chapter 33 of title 38 (Post-9/11 Educational Assistance).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/I","children":[{"t":"num","text":"(I)"},{"t":"content","text":" Chapter 35 of title 38 (Survivors\u2019 and Dependents\u2019 Educational Assistance Program).","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/J","children":[{"t":"num","text":"(J)"},{"t":"content","text":" Section 903 of the Department of Defense Authorization Act, 1981 (","children":[{"t":"ref","text":"10 U.S.C. 2141","href":"/us/usc/t10/s2141","tail":" note) (Educational Assistance Pilot Program)."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/K","children":[{"t":"num","text":"(K)"},{"t":"content","text":" Section 156(b) of the \u201cJoint Resolution making further continuing appropriations and providing for productive employment for the fiscal year 1983, and for other purposes\u201d (","children":[{"t":"ref","text":"42 U.S.C. 402","href":"/us/usc/t42/s402","tail":" note) (Restored Entitlement Program for Survivors, also known as \u201cQuayle benefits\u201d)."}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/c/2/L","children":[{"t":"num","text":"(L)"},{"t":"content","text":" The provisions of chapter 3 of title 37, related to subsistence allowances for members of the Reserve Officers Training Corps.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Independent students and determinations"},{"t":"chapeau","text":"The term \u201cindependent\u201d, when used with respect to a student, means any individual who\u2014"},{"t":"para","id":"/us/usc/t20/s1087vv/d/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" is 24 years of age or older by December 31 of the award year;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" is, or was at any time when the individual was 13 years of age or older\u2014"},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" an orphan;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" a ward of the court; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/2/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" in foster care;","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" is, or was immediately prior to attaining the age of majority, an emancipated minor or in legal guardianship as determined by a court of competent jurisdiction in the individual\u2019s State of legal residence;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" is a veteran of the Armed Forces of the United States (as defined in subsection (c)) or is currently serving on active duty in the Armed Forces for other than training purposes;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" is a graduate or professional student;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" is married and not separated;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" has legal dependents other than a spouse;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/8","children":[{"t":"num","text":"(8)"},{"t":"content","text":" is an unaccompanied homeless youth or is unaccompanied, at risk of homelessness, and self-supporting, without regard to such individual\u2019s age; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/d/9","children":[{"t":"num","text":"(9)"},{"t":"chapeau","text":" is a student for whom a financial aid administrator makes a documented determination of independence by reason of other unusual circumstances pursuant to ","children":[{"t":"ref","text":"section 1087tt(c) of this title","href":"/us/usc/t20/s1087tt/c","tail":" in which the student is unable to contact a parent or where contact with parents poses a risk to such student, which includes circumstances of\u2014"}]},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/9/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" human trafficking, as described in the Trafficking Victims Protection Act of 2000 (","children":[{"t":"ref","text":"22 U.S.C. 7101","href":"/us/usc/t22/s7101","tail":" et seq.);"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/9/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" legally granted refugee or asylum status;","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/9/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" parental abandonment or estrangement; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/d/9/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" student or parental incarceration.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Excludable income"},{"t":"chapeau","text":"The term \u201cexcludable income\u201d means\u2014"},{"t":"para","id":"/us/usc/t20/s1087vv/e/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" an amount equal to the education credits described in paragraphs (1) and (2) of ","children":[{"t":"ref","text":"section 25A(a) of title 26","href":"/us/usc/t26/s25A/a","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/e/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" if an applicant elects to report it, college grant and scholarship aid included in gross income on a Federal tax return, including amounts attributable to grant and scholarship portions of fellowships and assistantships and any national service educational award or post-service benefit received by an individual under title I of the National and Community Service Act of 1990 (","children":[{"t":"ref","text":"42 U.S.C. 12511","href":"/us/usc/t42/s12511","tail":" et seq.), including awards, living allowances, and interest accrual payments; and"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/e/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" income earned from work under part C of this subchapter.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Assets"},{"t":"para","id":"/us/usc/t20/s1087vv/f/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The term \u201cassets\u201d means the amount in checking and savings accounts, time deposits, money market funds, investments, trusts, stocks, bonds, derivatives, securities, mutual funds, tax shelters, qualified education benefits (except as provided in paragraph (3)), the annual amount of child support received and the net value of real estate, vacation homes, income producing property, and business and farm assets, determined in accordance with ","children":[{"t":"ref","text":"section 1087rr(c) of this title","href":"/us/usc/t20/s1087rr/c","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/f/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Exclusions"},{"t":"content","children":[{"t":"p","text":"With respect to determinations of need under this subchapter, the term \u201cassets\u201d shall not include the net value of the family\u2019s principal place of residence.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/f/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Consideration of qualified education benefit"},{"t":"chapeau","text":"A qualified education benefit shall be considered an asset of\u2014"},{"t":"subpara","id":"/us/usc/t20/s1087vv/f/3/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" the student if the student is an independent student; or","tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/f/3/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" the parent if the student is a dependent student and the account is designated for the student, regardless of whether the owner of the account is the student or the parent.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/f/4","children":[{"t":"num","text":"(4)"},{"t":"heading","text":"Definition of qualified education benefit"},{"t":"chapeau","text":"In this subsection, the term \u201cqualified education benefit\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t20/s1087vv/f/4/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" a qualified tuition program (as defined in ","children":[{"t":"ref","text":"section 529(b)(1)(A) of title 26","href":"/us/usc/t26/s529/b/1/A","tail":") or other prepaid tuition plan offered by a State; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/f/4/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" a Coverdell education savings account (as defined in ","children":[{"t":"ref","text":"section 530(b)(1) of title 26","href":"/us/usc/t26/s530/b/1","tail":")."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/g","children":[{"t":"num","text":"(g)"},{"t":"heading","text":"Net value"},{"t":"content","children":[{"t":"p","text":"The term \u201cnet value\u201d means the market value at the time of application of the assets (as defined in subsection (f)), minus the outstanding liabilities or indebtedness against the assets.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/h","children":[{"t":"num","text":"(h)"},{"t":"heading","text":"Treatment of income taxes paid to other jurisdictions"},{"t":"para","id":"/us/usc/t20/s1087vv/h/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" The tax on income paid to the Governments of the Commonwealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Commonwealth of the Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or Palau under the laws applicable to those jurisdictions, or the comparable tax paid to the central government of a foreign country, shall be treated as Federal income taxes.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/h/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" References in this part to title 26, Federal income tax forms, and the Internal Revenue Service shall, for purposes of the tax described in paragraph (1), be treated as references to the corresponding laws, tax forms, and tax collection agencies of those jurisdictions, respectively, subject to such adjustments as the Secretary may provide by regulation.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/i","children":[{"t":"num","text":"(i)"},{"t":"heading","text":"Other financial assistance"},{"t":"para","id":"/us/usc/t20/s1087vv/i/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" For purposes of determining a student\u2019s eligibility for funds under this subchapter, other financial assistance not received under this subchapter shall include all scholarships, grants, loans, or other assistance known to the institution at the time the determination of the student\u2019s need is made, including national service educational awards or post-service benefits under title I of the National and Community Service Act of 1990 (","children":[{"t":"ref","text":"42 U.S.C. 12511","href":"/us/usc/t42/s12511","tail":" et seq.), but excluding veterans\u2019 education benefits."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/i/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" Notwithstanding paragraph (1), a tax credit taken under ","children":[{"t":"ref","text":"section 25A of title 26","href":"/us/usc/t26/s25A","tail":", or a distribution that is not includable in gross income under section 529 of such title, under another prepaid tuition plan offered by a State, or under a Coverdell education savings account under section 530 of such title, shall not be treated as other financial assistance for purposes of section 1087kk(a)(3)\u202f"},{"t":"ref","text":"1"},{"t":"num","text":"1","tail":"\u202fSo in original. Probably should be \u201csection 1087kk(3)\u201d."},{"t":"text","text":"\u202fSo in original. Probably should be \u201csection 1087kk(3)\u201d.","tail":" of this title."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/i/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" Notwithstanding paragraph (1) and section 1087","children":[{"t":"text","text":"ll","tail":" of this title, assistance not received under this subchapter may be excluded from both other financial assistance and cost of attendance, if that assistance is provided by a State and is designated by such State to offset a specific component of the cost of attendance. If that assistance is excluded from either other financial assistance or cost of attendance, it shall be excluded from both."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/i/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" Notwithstanding paragraph (1), payments made and services provided under part E of title IV of the Social Security Act [","children":[{"t":"ref","text":"42 U.S.C. 670","href":"/us/usc/t42/s670","tail":" et seq.] to or on behalf of any child or youth over whom the State agency has responsibility for placement, care, or supervision, including the value of vouchers for education and training and amounts expended for room and board for youth who are not in foster care but are receiving services under section 477 of such Act ["},{"t":"ref","text":"42 U.S.C. 677","href":"/us/usc/t42/s677","tail":"], shall not be treated as other financial assistance for purposes of section 1087kk(a)(3)\u202f"},{"t":"text","text":"1","tail":" of this title."}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/i/5","children":[{"t":"num","text":"(5)"},{"t":"content","text":" Notwithstanding paragraph (1), emergency financial assistance provided to the student for unexpected expenses that are a component of the student\u2019s cost of attendance, and not otherwise considered when the determination of the student\u2019s need is made, shall not be treated as other financial assistance for purposes of section 1087kk(a)(3)\u202f","children":[{"t":"text","text":"1","tail":" of this title."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/j","children":[{"t":"num","text":"(j)"},{"t":"heading","text":"Dependents"},{"t":"para","id":"/us/usc/t20/s1087vv/j/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" Except as otherwise provided, the term \u201cdependent of the parent\u201d means the student who is deemed to be a dependent student when applying for aid under this subchapter, and any other person who lives with and receives more than one-half of their support from the parent (or parents) and will continue to receive more than half of their support from the parent (or parents) during the award year.","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/j/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" Except as otherwise provided, the term \u201cdependent of the student\u201d means the student\u2019s dependent children and other persons (except the student\u2019s spouse) who live with and receive more than one-half of their support from the student and will continue to receive more than half of their support from the student during the award year.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/k","children":[{"t":"num","text":"(k)"},{"t":"heading","text":"Family size"},{"t":"para","id":"/us/usc/t20/s1087vv/k/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"Dependent student"},{"t":"chapeau","text":"Except as provided in paragraph (3), in determining family size in the case of a dependent student\u2014"},{"t":"subpara","id":"/us/usc/t20/s1087vv/k/1/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" if the parents are not divorced or separated, family members include the student\u2019s parents, and any dependent (within the meaning of ","children":[{"t":"ref","text":"section 152 of title 26","href":"/us/usc/t26/s152","tail":" or an eligible individual for purposes of the credit under "},{"t":"ref","text":"section 24 of title 26","href":"/us/usc/t26/s24","tail":") of the student\u2019s parents for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter;"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/k/1/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" if the parents are divorced or separated, family members include the parent whose income is included in computing available income and any dependent (within the meaning of ","children":[{"t":"ref","text":"section 152 of title 26","href":"/us/usc/t26/s152","tail":" or an eligible individual for purposes of the credit under "},{"t":"ref","text":"section 24 of title 26","href":"/us/usc/t26/s24","tail":") of that parent for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter;"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/k/1/C","children":[{"t":"num","text":"(C)"},{"t":"content","text":" if the parents are divorced and the parents whose income is so included are remarried, or if the parent was a widow or widower who has remarried, family members also include, in addition to those individuals referred to in subparagraph (B), the new spouse and any dependent (within the meaning of ","children":[{"t":"ref","text":"section 152 of title 26","href":"/us/usc/t26/s152","tail":" or an eligible individual for purposes of the credit under "},{"t":"ref","text":"section 24 of title 26","href":"/us/usc/t26/s24","tail":") of the new spouse for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter, if that spouse\u2019s income is included in determining the parent\u2019s adjusted available income; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/k/1/D","children":[{"t":"num","text":"(D)"},{"t":"content","text":" if the student is not considered as a dependent (within the meaning of ","children":[{"t":"ref","text":"section 152 of title 26","href":"/us/usc/t26/s152","tail":" or an eligible individual for purposes of the credit under "},{"t":"ref","text":"section 24 of title 26","href":"/us/usc/t26/s24","tail":") of any parent, the parents\u2019 family size shall include the student and the family members applicable to the parents\u2019 situation under subparagraph (A), (B), or (C)."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/k/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Independent student"},{"t":"chapeau","text":"Except as provided in paragraph (3), in determining family size in the case of an independent student\u2014"},{"t":"subpara","id":"/us/usc/t20/s1087vv/k/2/A","children":[{"t":"num","text":"(A)"},{"t":"content","text":" family members include the student, the student\u2019s spouse, and any dependent (within the meaning of ","children":[{"t":"ref","text":"section 152 of title 26","href":"/us/usc/t26/s152","tail":" or an eligible individual for purposes of the credit under "},{"t":"ref","text":"section 24 of title 26","href":"/us/usc/t26/s24","tail":") of that student for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter; and"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t20/s1087vv/k/2/B","children":[{"t":"num","text":"(B)"},{"t":"content","text":" if the student is divorced or separated, family members do not include the spouse (or ex-spouse), but do include the student and any dependent (within the meaning of ","children":[{"t":"ref","text":"section 152 of title 26","href":"/us/usc/t26/s152","tail":" or an eligible individual for purposes of the credit under "},{"t":"ref","text":"section 24 of title 26","href":"/us/usc/t26/s24","tail":") of that student for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t20/s1087vv/k/3","children":[{"t":"num","text":"(3)"},{"t":"heading","text":"Procedures and modification"},{"t":"content","children":[{"t":"p","text":"The Secretary shall provide procedures for determining family size in cases in which information for the taxable year used in determining the amount of need of the student for financial assistance under this subchapter has changed or does not accurately reflect the applicant\u2019s current household size, including when a divorce settlement only allows a parent to file for the Earned Income Tax Credit available under ","children":[{"t":"ref","text":"section 32 of title 26","href":"/us/usc/t26/s32","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/l","children":[{"t":"num","text":"(l)"},{"t":"heading","text":"Business assets"},{"t":"content","children":[{"t":"p","text":"The term \u201cbusiness assets\u201d means property that is used in the operation of a trade or business, including real estate, inventories, buildings, machinery, and other equipment, patents, franchise rights, and copyrights.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/m","children":[{"t":"num","text":"(m)"},{"t":"heading","text":"Homeless youth"},{"t":"content","children":[{"t":"p","text":"The term \u201chomeless youth\u201d has the meaning given the term \u201chomeless children and youths\u201d in ","children":[{"t":"ref","text":"section 11434a of title 42","href":"/us/usc/t42/s11434a","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t20/s1087vv/n","children":[{"t":"num","text":"(n)"},{"t":"heading","text":"Unaccompanied"},{"t":"content","children":[{"t":"p","text":"The terms \u201cunaccompanied\u201d, \u201cunaccompanied youth\u201d, or \u201cunaccompanied homeless youth\u201d have the meaning given the term \u201cunaccompanied youth\u201d in ","children":[{"t":"ref","text":"section 11434a of title 42","href":"/us/usc/t42/s11434a","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}