On the worksheets, you (the student) should go to www.fafsa.ed.gov and click on "Worksheets" under "Before Beginning a FAFSA" or complete the left-hand (yellow) side on page 8 of the paper FAFSA.

Exclusions from taxed income. Because the items listed in this worksheet will be excluded from income when the Department's processor performs the EFC calculation, you should not subtract them from your responses to the income questions in Questions 36-51. These amounts should be calculated on the basis of what was received between January 1, 2002 and December 31, 2002 and not what was received during the school year.

Education credits. The Hope and Lifetime Learning tax credits benefit students or parents who pay tuition and related expenses for attendance at least half time in a degree-granting program. These tax credits are subtracted directly from the total federal tax on a tax return. Enter the total amount of Hope and Lifetime Learning credits you received in 2002, from Form 1040 - line 48; 1040A - line 31. For more information about these tax credits, visit the IRS Web site at www.irs.gov/pub/irs-pdf/p970.pdf

Child support payments. Report any child support payments paid during 2002 by you (or your spouse) because of divorce, separation or as a result of a legal requirement. Do not include support for children in your household, as reported in the "number in household" question on the FAFSA (Question 85 for independent students). For purposes of the FAFSA, a child is a member of your household if you provide more than half of the child's support, whether the child lives with you or not.

Taxable earnings from work-study or other need-based employment and need-based employment portions of fellowships and assistantships. You should report earnings from work as income in this part of the application. However, if those earnings are part of a financial aid package and are intended as need-based financial assistance, you should also report them on Worksheet C as an exclusion from income.

Student grants and other awards. Report any student grant and scholarship aid reported to the IRS in your AGI. This includes AmeriCorps. benefits (awards, living allowances, and interest accrual payments), as well as grant and scholarship portions of fellowships and assistantships.