Help! Will Monetary buyout influence my kids college fund?


#1

Hello.

It is FASA and Tax Time…I got a buyout in exchange for my spouse to keep the house. She is filling out college forms for scholarship, will the amount in my account influence scholarship decision? Also that money is not income…


#2

It should not, and your agreement should specify that the distributive award is not income and therefore non-taxable as such.