<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:x="urn:schemas-microsoft-com:office:excel" xmlns:p="urn:schemas-microsoft-com:office:powerpoint" xmlns:a="urn:schemas-microsoft-com:office:access" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:s="uuid:BDC6E3F0-6DA3-11d1-A2A3-00AA00C14882" xmlns:rs="urn:schemas-microsoft-com:rowset" xmlns:z="#RowsetSchema" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:ss="urn:schemas-microsoft-com:office:spreadsheet" xmlns:c="urn:schemas-microsoft-com:office:component:spreadsheet" xmlns:odc="urn:schemas-microsoft-com:office:odc" xmlns:oa="urn:schemas-microsoft-com:office:activation" xmlns:html="http://www.w3.org/TR/REC-html40" xmlns:q="http://schemas.xmlsoap.org/soap/envelope/" xmlns:rtc="http://microsoft.com/officenet/conferencing" xmlns:D="DAV:" xmlns:Repl="http://schemas.microsoft.com/repl/" xmlns:mt="http://schemas.microsoft.com/sharepoint/soap/meetings/" xmlns:x2="http://schemas.microsoft.com/office/excel/2003/xml" xmlns:ppda="http://www.passport.com/NameSpace.xsd" xmlns:ois="http://schemas.microsoft.com/sharepoint/soap/ois/" xmlns:dir="http://schemas.microsoft.com/sharepoint/soap/directory/" xmlns:ds="http://www.w3.org/2000/09/xmldsig#" xmlns:dsp="http://schemas.microsoft.com/sharepoint/dsp" xmlns:udc="http://schemas.microsoft.com/data/udc" xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:sub="http://schemas.microsoft.com/sharepoint/soap/2002/1/alerts/" xmlns:ec="http://www.w3.org/2001/04/xmlenc#" xmlns:sp="http://schemas.microsoft.com/sharepoint/" xmlns:sps="http://schemas.microsoft.com/sharepoint/soap/" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:udcs="http://schemas.microsoft.com/data/udc/soap" xmlns:udcxf="http://schemas.microsoft.com/data/udc/xmlfile" xmlns:udcp2p="http://schemas.microsoft.com/data/udc/parttopart" xmlns:wf="http://schemas.microsoft.com/sharepoint/soap/workflow/" xmlns:dsss="http://schemas.microsoft.com/office/2006/digsig-setup" xmlns:dssi="http://schemas.microsoft.com/office/2006/digsig" xmlns:mdssi="http://schemas.openxmlformats.org/package/2006/digital-signature" xmlns:mver="http://schemas.openxmlformats.org/markup-compatibility/2006" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns:mrels="http://schemas.openxmlformats.org/package/2006/relationships" xmlns:spwp="http://microsoft.com/sharepoint/webpartpages" xmlns:ex12t="http://schemas.microsoft.com/exchange/services/2006/types" xmlns:ex12m="http://schemas.microsoft.com/exchange/services/2006/messages" xmlns:pptsl="http://schemas.microsoft.com/sharepoint/soap/SlideLibrary/" xmlns:spsl="http://microsoft.com/webservices/SharePointPortalServer/PublishedLinksService" xmlns:Z="urn:schemas-microsoft-com:" xmlns:st="" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv=Content-Type content="text/html; charset=us-ascii">
<meta name=Generator content="Microsoft Word 12 (filtered medium)">
<style>
<!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:12.0pt;
font-family:"Times New Roman","serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-reply;
font-family:"Calibri","sans-serif";
color:#548DD4;
font-weight:bold;}
.MsoChpDefault
{mso-style-type:export-only;}
@page Section1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.Section1
{page:Section1;}
-->
</style>
<!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang=EN-US link=blue vlink=purple>
<div class=Section1>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'>Billie,<o:p></o:p></span></b></p>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'><o:p> </o:p></span></b></p>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'>No, nothing needs to be done differently for students with a
negative AGI. <o:p></o:p></span></b></p>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'><o:p> </o:p></span></b></p>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'><o:p> </o:p></span></b></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'>Pam McConahay<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'>Associate Director, University of Oklahoma Financial Aid
Services<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'>pmcconahay@ou.edu<o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:8.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'>This message, and attachments if any, from the University of
Oklahoma may contain confidential or privileged information. If you are
not the intended recipient of this information, you are prohibited from
reading, disclosing, reproducing, distributing, disseminating, or otherwise
using this information. If you received this transmission in error,
please notify the sender and delete this message immediately. <o:p></o:p></span></p>
<p class=MsoNormal><span style='font-size:9.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'><o:p> </o:p></span></p>
<p class=MsoNormal><b><span style='font-size:11.0pt;font-family:"Calibri","sans-serif";
color:#548DD4'><o:p> </o:p></span></b></p>
<div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'>
<p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span
style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> Billie Stewart
[mailto:billie.stewart@swcu.edu] <br>
<b>Sent:</b> Wednesday, November 11, 2009 11:11 AM<br>
<b>To:</b> Mc Conahay, Pamela K.<br>
<b>Cc:</b> Jonna Raney; oasfaa@onenet.net<br>
<b>Subject:</b> Re: [Oasfaa] Verification Question<o:p></o:p></span></p>
</div>
<p class=MsoNormal><o:p> </o:p></p>
<div>
<p class=MsoNormal>Is there anything that needs to be done differently for
those students that have a negative AGI. <o:p></o:p></p>
</div>
<div>
<p class=MsoNormal>Billie Stewart<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'>Southwestern Christian
University<o:p></o:p></p>
</div>
<div>
<p class=MsoNormal>On Mon, Nov 9, 2009 at 5:30 PM, Mc Conahay, Pamela K. <<a
href="mailto:pmcconahay@ou.edu">pmcconahay@ou.edu</a>> wrote:<o:p></o:p></p>
<p class=MsoNormal>Jonna,<br>
<br>
Yes, you should go back to treating business/farm losses as zeroes when
calculating income earned from work. If I was the trainer at that
workshop, I screwed up.<br>
<br>
I think the key thing here is for people to understand how the 'income earned
from work' is used in the EFC calculation. It does two things---allows
the formula to accurately calculate a FICA allowance, and also drives the
employment allowance.<br>
<br>
If you treat subtract the negative amounts on lines 12 or 18 from the positive
total of wages earned from line 7, you won't be giving the parent/student an
accurate FICA allowance in the EFC calculation.<br>
<br>
If you work at the mall and make $25,000 a year, you pay FICA on that
$25,000.....even if you have a business loss of $10,000 on line 12. You
don't pay any FICA on that business loss, so it should be treated as zero when
totaling up the income earned from work; the correct income earned from
work is $25,000.<br>
<br>
The accurate FICA allowance is $1912 (25,000 x 7.65%). If you subtract
the $10,000 loss from the $25,000 wages and put $15,000 as income earned from
work, the FICA allowance is only $1147, and the person has $765 more in
available income than is really true, incorrectly inflating their EFC.<br>
<br>
The same logic holds true for the employment allowance (which is supposed to
reflect the 'cost of working' like gas, clothes, lunch, etc.). In order
to earn $25,000 at the mall, the correct employment allowance should be based
on the $25,000. It didn't cost you any less to get to work and earn that
$25,000 just because your side business went in the hole.<br>
<br>
Pam McConahay<br>
Associate Director, University of Oklahoma Financial Aid Services<br>
<a href="mailto:pmcconahay@ou.edu">pmcconahay@ou.edu</a><br>
This message, and attachments if any, from the University of Oklahoma may
contain confidential or privileged information. If you are not the
intended recipient of this information, you are prohibited from reading,
disclosing, reproducing, distributing, disseminating, or otherwise using this
information. If you received this transmission in error, please notify
the sender and delete this message immediately.<o:p></o:p></p>
<div>
<div>
<p class=MsoNormal style='margin-bottom:12.0pt'><br>
<br>
<br>
-----Original Message-----<br>
From: <a href="mailto:oasfaa-bounces@lists.onenet.net">oasfaa-bounces@lists.onenet.net</a>
[mailto:<a href="mailto:oasfaa-bounces@lists.onenet.net">oasfaa-bounces@lists.onenet.net</a>]
On Behalf Of Jonna Raney<br>
Sent: Monday, November 09, 2009 4:45 PM<br>
To: <a href="mailto:oasfaa@onenet.net">oasfaa@onenet.net</a><br>
Subject: [Oasfaa] Verification Question<br>
<br>
Years ago, we treated amount on line 12 or 18 on the 1040 as zeroes. Then, we
went to a training a few years ago and they specifically said to subtract
negative amounts when calculating income from work. So, we started
subtracting the negative amounts. However, a colleague at another school
emailed today and had found the following in the regs...<br>
<br>
"Income earned from work and the IRS 1040 form<br>
The FAFSA instructs the applicant to sum lines 7, 12, and 18 of the 1040<br>
form and box 14 [code A] of Schedule K-1 (Form 1065) as an option for<br>
determining the income earned from work. But when the values of lines 12<br>
or 18 or box 14 are negative, this will reduce the total and can wrongly<br>
affect the Social Security al-lowance. If values from lines 12 or 18 or<br>
box 14 are negative, treat them as zero when determining the income
earned"<br>
<br>
So, now I think we need to go back to treating them as zeroes except that the
FAFSA simply says to total lines 7, 12, 18 and Box 14A, etc. and doesn't
instruct to treat negatives as zeroes so I'm sure most will subtract them
because that's how you logically total a negative. Right?<br>
<br>
So, what do you do? I can take it if everyone tells me we're doing it
incorrectly. :-) I would rather hear it from you all than from a program
reviewer.<br>
<br>
Jonna<br>
<br>
<o:p></o:p></p>
</div>
</div>
</div>
<p class=MsoNormal><br>
<br clear=all>
<br>
-- <br>
Mrs.Billie Stewart<br>
Financial Aid Director<br>
Southwestern Christian University<br>
(405) 789-7661 X 3431<br>
<a href="mailto:billie.stewart@swcu.edu">billie.stewart@swcu.edu</a><br>
<a href="http://www.swcu.edu/financialinformation">www.swcu.edu/financialinformation</a><br>
<br>
<br>
<br>
<br>
<br>
<br>
To know the will of God is the greatest knowledge, to find the<br>
will of God is the greatest discovery, and to do the will of God<br>
is the greatest achievement.<br>
<br>
-- Author Unknown<br>
<br>
--<br>
Note: This communication and attachments are intended solely for the use of the
addressee hereof. In addition, this information and attachments may contain
information that is confidential, privileged and exempt from disclosure under
applicable law. If you are not the intended recipient of this information, you
are prohibited from reading, disclosing, reproducing, distributing,
disseminating, or otherwise using this information. If you have received this
message in error, please promptly notify the sender and immediately delete this
communication from your system.<o:p></o:p></p>
</div>
</body>
</html>