The allowance for State and other taxes is equal to an amount determined by multiplying total income (as defined in section 1087vv of this title) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Percentages for Computation of State and Other Tax Allowance |
||
---|---|---|
If parents’ State or territory of residence is— |
And parents’ total income is— |
|
less than $15,000 or |
$15,000 or more |
|
|
then the percentage is— |
|
Alaska, Puerto Rico, Wyoming |
3 |
2 |
American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands |
4 |
3 |
Florida, South Dakota, Tennessee, New Mexico |
5 |
4 |
North Dakota, Washington |
6 |
5 |
Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia |
7 |
6 |
Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky |
8 |
7 |
California, Delaware, Idaho, Iowa, Nebraska, North Carolina, Ohio, Pennsylvania, South Carolina, Utah, Vermont, Virginia, Canada, Mexico |
9 |
8 |
Maine, New Jersey |
10 |
9 |
District of Columbia, Hawaii, Maryland, Massachusetts, Oregon, Rhode Island |
11 |
10 |
Michigan, Minnesota |
12 |
11 |
Wisconsin |
13 |
12 |
New York |
14 |
13 |
Other |
9 |
8 |
The allowance for social security taxes is equal to the amount earned by each parent multiplied by the social security withholding rate appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year.
The income protection allowance is determined by the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Income Protection Allowance |
||||||
---|---|---|---|---|---|---|
Family Size |
Number in College |
|||||
(including student) |
1 |
2 |
3 |
4 |
5 |
For each additional subtract: |
2 |
$10,520 |
$8,720 |
|
|
|
$1,790 |
3 |
13,100 |
11,310 |
$9,510 |
|||
4 |
16,180 |
14,380 |
12,590 |
$10,790 |
||
5 |
19,090 |
17,290 |
15,500 |
13,700 |
$11,910 |
|
6 |
22,330 |
20,530 |
18,740 |
16,940 |
15,150 |
|
For each additional add: |
2,520 |
2,520 |
2,520 |
2,520 |
2,520 |
Adjusted Net Worth of a Business or Farm |
|
---|---|
If the net worth of a business or farm is— |
Then the adjusted net worth is: |
Less than $1 |
$0 |
$1–$75,000 |
40 percent of NW |
$75,001–$225,000 |
$30,000 plus 50 percent of NW over $75,000 |
$225,001–$375,000 |
$105,000 plus 60 percent of NW over $225,000 |
$375,001 or more |
$195,000 plus 100 percent of NW over $375,000 |
The education savings and asset protection allowance is calculated according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Education Savings and Asset Protection Allowances for Families and Students |
||
---|---|---|
If the age of the oldest parent is— |
And there are |
|
two parents |
one parent |
|
|
then the allowance is— |
|
25 or less |
$ 0 |
$0 |
26 |
2,200 |
1,600 |
27 |
4,300 |
3,200 |
28 |
6,500 |
4,700 |
29 |
8,600 |
6,300 |
30 |
10,800 |
7,900 |
31 |
13,000 |
9,500 |
32 |
15,100 |
11,100 |
33 |
17,300 |
12,600 |
34 |
19,400 |
14,200 |
35 |
21,600 |
15,800 |
36 |
23,800 |
17,400 |
37 |
25,900 |
19,000 |
38 |
28,100 |
20,500 |
39 |
30,200 |
22,100 |
40 |
32,400 |
23,700 |
41 |
33,300 |
24,100 |
42 |
34,100 |
24,700 |
43 |
35,000 |
25,200 |
44 |
35,700 |
25,800 |
45 |
36,600 |
26,300 |
46 |
37,600 |
26,900 |
47 |
38,800 |
27,600 |
48 |
39,800 |
28,200 |
49 |
40,800 |
28,800 |
50 |
41,800 |
29,500 |
51 |
43,200 |
30,200 |
52 |
44,300 |
31,100 |
53 |
45,700 |
31,800 |
54 |
47,100 |
32,600 |
55 |
48,300 |
33,400 |
56 |
49,800 |
34,400 |
57 |
51,300 |
35,200 |
58 |
52,900 |
36,200 |
59 |
54,800 |
37,200 |
60 |
56,500 |
38,100 |
61 |
58,500 |
39,200 |
62 |
60,300 |
40,300 |
63 |
62,400 |
41,500 |
64 |
64,600 |
42,800 |
65 or more |
66,800 |
44,000 |
The adjusted available income (as determined under subsection (b)(1) and hereafter in this subsection referred to as “AAI”) is assessed according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Parents’ Assessment From Adjusted Available Income (AAI) |
|
---|---|
If AAI is— |
Then the assessment is— |
Less than −$3,409 |
−$750 |
−$3,409 to $9,400 |
22% of AAI |
$9,401 to $11,800 |
$2,068 + 25% of AAI over $9,400 |
$11,801 to $14,200 |
$2,668 + 29% of AAI over $11,800 |
$14,201 to $16,600 |
$3,364 + 34% of AAI over $14,200 |
$16,601 to $19,000 |
$4,180 + 40% of AAI over $16,600 |
$19,001 or more |
$5,140 + 47% of AAI over $19,000 |
The allowance for State and other income taxes is equal to an amount determined by multiplying total income (as defined in section 1087vv of this title) by a percentage determined according to the following table (or a successor table prescribed by the Secretary under section 1087rr of this title):
Percentages for Computation of State and Other Tax Allowance |
|
---|---|
If the students’ State or territory of residence is— |
The percentage is— |
Alaska, American Samoa, Florida, Guam, Nevada, South Dakota, Tennessee, Texas, Trust Territory, Virgin Islands, Washington, Wyoming |
0 |
Connecticut, Louisiana, Puerto Rico |
1 |
Arizona, New Hampshire, New Mexico, North Dakota |
2 |
Alabama, Colorado, Illinois, Indiana, Kansas, Mississippi, Missouri, Montana, Nebraska, New Jersey, Oklahoma |
3 |
Arkansas, Georgia, Iowa, Kentucky, Maine, Pennsylvania, Utah, Vermont, Virginia, West Virginia, Canada, Mexico |
4 |
California, Idaho, Massachusetts, North Carolina, Ohio, Rhode Island, South Carolina |
5 |
Hawaii, Maryland, Michigan, Wisconsin |
6 |
Delaware, District of Columbia, Minnesota, Oregon |
7 |
New York |
8 |
Other |
4 |
The allowance for social security taxes is equal to the amount earned by the student multiplied by the social security withholding rate appropriate to the tax year of the earnings, up to the maximum statutory social security tax withholding amount for that same tax year.
The student’s available income (determined in accordance with paragraph (1) of this subsection) is assessed at 50 percent.
The allowance for parents’ negative available income is the amount, if any, by which the sum of the amounts deducted under subparagraphs (A) through (F) of subsection (c)(1) exceeds the sum of the parents’ total income (as defined in section 1087vv of this title) and the parents’ contribution from assets (as determined in accordance with subsection (d)).
The student contribution from assets is determined by calculating the net assets of the student and multiplying such amount by 20 percent, except that the result shall not be less than zero.
For periods of enrollment of less than 9 months, the student’s contribution from adjusted available income (as determined under subsection (g)) is determined, for purposes other than subpart 2 of part A, by dividing the amount determined under such subsection by 9, and multiplying the result by the number of months in the period of enrollment.