{"id":2577,"date":"2020-08-25T20:34:40","date_gmt":"2020-08-25T20:34:40","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-financialaccounting\/?post_type=chapter&#038;p=2577"},"modified":"2020-11-20T16:44:27","modified_gmt":"2020-11-20T16:44:27","slug":"other-sources-of-income","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/chapter\/other-sources-of-income\/","title":{"raw":"Other Sources of Income","rendered":"Other Sources of Income"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Identify other potential sources of income available while attending school full or part time<\/li>\r\n<\/ul>\r\n<\/div>\r\nIn addition to federal financial aid, you might be eligible for financial assistance from other organizations, such as your state, non-profits, and your school. A bit of research and digging can unearth a treasure trove of resources.\r\n<h2>Government Listings<\/h2>\r\nThere are state and federal programs you can access for funding in addition to the ones that you normally think of when you fill out your FAFSA. A partial list includes:\r\n<ul>\r\n \t<li style=\"font-weight: 400\">Special aid programs or additional aid eligibility for serving in the military or for being the spouse or child of a veteran<\/li>\r\n \t<li style=\"font-weight: 400\">Education awards for community service with AmeriCorps<\/li>\r\n \t<li style=\"font-weight: 400\">Educational and training vouchers for current and former foster care youth<\/li>\r\n \t<li style=\"font-weight: 400\">Scholarships and loan repayment programs through various institutions:\r\n<ul>\r\n \t<li style=\"font-weight: 400\">Department of Health and Human Services Indian Health Service<\/li>\r\n \t<li style=\"font-weight: 400\">National Institutes of Health<\/li>\r\n \t<li style=\"font-weight: 400\">National Health Service Corps<\/li>\r\n<\/ul>\r\n<\/li>\r\n<\/ul>\r\nIf your financial aid office doesn\u2019t have a comprehensive list available, a simple web search is a good place to start.\r\n<h2>Scholarship Opportunities<\/h2>\r\n<a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/08\/16232334\/people-2562626_1920.jpg\"><img class=\"wp-image-5916 size-medium alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/08\/16232334\/people-2562626_1920-300x169.jpg\" alt=\"A group of students at graduation.\" width=\"300\" height=\"169\" \/><\/a>Many nonprofit and private organizations offer scholarships to help students pay for college or career school. This type of aid doesn't need to be paid back, which can make a real difference in helping you manage your education expenses.\u00a0Keep in mind that scholarships can be based on your academic merit, your specific talents, or your particular area of study.\r\n\r\nYour school\u2019s financial aid office may be able to direct you to a scholarship or aid foundation, and many schools have a single scholarship application that will work for multiple opportunities, saving you a lot of time and increasing your chances of getting more financial help.\r\n<h2>Your College's Financial Aid Office<\/h2>\r\nMany schools have a pool of money set aside that allows them to offer their own grants and scholarships, as well as emergency funds for things like housing, supplies, and even living expenses. Fill out any applications your school requires for its own aid programs, and make sure you meet your school\u2019s deadlines.\r\n<div class=\"textbox key-takeaways\">\r\n<h3>More Places to Look<\/h3>\r\nIdeas for finding scholarship opportunities:\r\n<ul>\r\n \t<li style=\"font-weight: 400\">Visit your school\u2019s financial aid page on its website, or contact the financial aid office.<\/li>\r\n \t<li style=\"font-weight: 400\">Ask at the department that offers your course of study; they might have a scholarship for students in your major.<\/li>\r\n \t<li style=\"font-weight: 400\"><a href=\"https:\/\/www.careeronestop.org\/toolkit\/training\/find-scholarships.aspx\" target=\"_blank\" rel=\"noopener\">The U.S. Department of Labor\u2019s free scholarship search tool<\/a>.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<h2>Savings Account<\/h2>\r\nSome students are lucky enough to have a parent, grandparent, or another third party who has either transferred resources into a trust or bank account or a 529 college savings plan. However, those assets have to be reported on the FAFSA and may adversely affect the amount of financial aid awarded.\r\n\r\nIn addition, you, your parents, your spouse, and even your grandparents can take an early withdrawal from an Individual Retirement Account (IRA) to pay for qualified education expenses.\r\n\r\nNormally, IRA withdrawals before age 59.5 result in a 10 percent early distribution penalty in addition to any regular income tax due, but education expenses are an exception. Again, as this is a tax issue, it pays to do some research into the exact current rules, and this is one place it\u2019s a good idea to hire a qualified expert for advice on college funding.\r\n<div class=\"textbox examples\">\r\n<h3>DON\u2019T FORGET TO TAKE ADVANTAGE OF TAX BENEFITS<\/h3>\r\nThe American Opportunity Tax Credit (AOTC) provides a partially refundable tax credit worth up to $2,500 for the first four years of school as you work toward a degree or similar credential.\u00a0(The refund number is based on a tuition, fees, and textbook expenses cost of up to $4,000.)\r\n\r\nThe Lifetime Learning Credit allows you to claim up to $2,000 per year for any college or career school tuition and fees and other expenses. Part of the AOTC is considered a \u201crefundable\u201d credit, which means that even if you don\u2019t have a tax liability, you can still get a refund from the IRS. Tax credits can be a bit complicated, and the laws are subject to change, so it pays to do some research and\/or consult with a qualified tax advisor.\r\n\r\n<\/div>\r\n<div class=\"textbox key-takeaways\">\r\n<h3>Additional Resources<\/h3>\r\nYou can watch this video from CNBC for <a href=\"https:\/\/www.cnbc.com\/video\/2018\/04\/16\/5-tricks-for-paying-for-college.html\" target=\"_blank\" rel=\"noopener\">additional tricks to pay for college<\/a>.\r\n\r\n<\/div>\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/23318\r\n\r\nhttps:\/\/assessments.lumenlearning.com\/assessments\/23319\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Identify other potential sources of income available while attending school full or part time<\/li>\n<\/ul>\n<\/div>\n<p>In addition to federal financial aid, you might be eligible for financial assistance from other organizations, such as your state, non-profits, and your school. A bit of research and digging can unearth a treasure trove of resources.<\/p>\n<h2>Government Listings<\/h2>\n<p>There are state and federal programs you can access for funding in addition to the ones that you normally think of when you fill out your FAFSA. A partial list includes:<\/p>\n<ul>\n<li style=\"font-weight: 400\">Special aid programs or additional aid eligibility for serving in the military or for being the spouse or child of a veteran<\/li>\n<li style=\"font-weight: 400\">Education awards for community service with AmeriCorps<\/li>\n<li style=\"font-weight: 400\">Educational and training vouchers for current and former foster care youth<\/li>\n<li style=\"font-weight: 400\">Scholarships and loan repayment programs through various institutions:\n<ul>\n<li style=\"font-weight: 400\">Department of Health and Human Services Indian Health Service<\/li>\n<li style=\"font-weight: 400\">National Institutes of Health<\/li>\n<li style=\"font-weight: 400\">National Health Service Corps<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>If your financial aid office doesn\u2019t have a comprehensive list available, a simple web search is a good place to start.<\/p>\n<h2>Scholarship Opportunities<\/h2>\n<p><a href=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/08\/16232334\/people-2562626_1920.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5916 size-medium alignright\" src=\"https:\/\/s3-us-west-2.amazonaws.com\/courses-images\/wp-content\/uploads\/sites\/5107\/2020\/08\/16232334\/people-2562626_1920-300x169.jpg\" alt=\"A group of students at graduation.\" width=\"300\" height=\"169\" \/><\/a>Many nonprofit and private organizations offer scholarships to help students pay for college or career school. This type of aid doesn&#8217;t need to be paid back, which can make a real difference in helping you manage your education expenses.\u00a0Keep in mind that scholarships can be based on your academic merit, your specific talents, or your particular area of study.<\/p>\n<p>Your school\u2019s financial aid office may be able to direct you to a scholarship or aid foundation, and many schools have a single scholarship application that will work for multiple opportunities, saving you a lot of time and increasing your chances of getting more financial help.<\/p>\n<h2>Your College&#8217;s Financial Aid Office<\/h2>\n<p>Many schools have a pool of money set aside that allows them to offer their own grants and scholarships, as well as emergency funds for things like housing, supplies, and even living expenses. Fill out any applications your school requires for its own aid programs, and make sure you meet your school\u2019s deadlines.<\/p>\n<div class=\"textbox key-takeaways\">\n<h3>More Places to Look<\/h3>\n<p>Ideas for finding scholarship opportunities:<\/p>\n<ul>\n<li style=\"font-weight: 400\">Visit your school\u2019s financial aid page on its website, or contact the financial aid office.<\/li>\n<li style=\"font-weight: 400\">Ask at the department that offers your course of study; they might have a scholarship for students in your major.<\/li>\n<li style=\"font-weight: 400\"><a href=\"https:\/\/www.careeronestop.org\/toolkit\/training\/find-scholarships.aspx\" target=\"_blank\" rel=\"noopener\">The U.S. Department of Labor\u2019s free scholarship search tool<\/a>.<\/li>\n<\/ul>\n<\/div>\n<h2>Savings Account<\/h2>\n<p>Some students are lucky enough to have a parent, grandparent, or another third party who has either transferred resources into a trust or bank account or a 529 college savings plan. However, those assets have to be reported on the FAFSA and may adversely affect the amount of financial aid awarded.<\/p>\n<p>In addition, you, your parents, your spouse, and even your grandparents can take an early withdrawal from an Individual Retirement Account (IRA) to pay for qualified education expenses.<\/p>\n<p>Normally, IRA withdrawals before age 59.5 result in a 10 percent early distribution penalty in addition to any regular income tax due, but education expenses are an exception. Again, as this is a tax issue, it pays to do some research into the exact current rules, and this is one place it\u2019s a good idea to hire a qualified expert for advice on college funding.<\/p>\n<div class=\"textbox examples\">\n<h3>DON\u2019T FORGET TO TAKE ADVANTAGE OF TAX BENEFITS<\/h3>\n<p>The American Opportunity Tax Credit (AOTC) provides a partially refundable tax credit worth up to $2,500 for the first four years of school as you work toward a degree or similar credential.\u00a0(The refund number is based on a tuition, fees, and textbook expenses cost of up to $4,000.)<\/p>\n<p>The Lifetime Learning Credit allows you to claim up to $2,000 per year for any college or career school tuition and fees and other expenses. Part of the AOTC is considered a \u201crefundable\u201d credit, which means that even if you don\u2019t have a tax liability, you can still get a refund from the IRS. Tax credits can be a bit complicated, and the laws are subject to change, so it pays to do some research and\/or consult with a qualified tax advisor.<\/p>\n<\/div>\n<div class=\"textbox key-takeaways\">\n<h3>Additional Resources<\/h3>\n<p>You can watch this video from CNBC for <a href=\"https:\/\/www.cnbc.com\/video\/2018\/04\/16\/5-tricks-for-paying-for-college.html\" target=\"_blank\" rel=\"noopener\">additional tricks to pay for college<\/a>.<\/p>\n<\/div>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"lumen_assessment_23318\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=23318&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_23318\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n<p>\t<iframe id=\"lumen_assessment_23319\" class=\"resizable\" src=\"https:\/\/assessments.lumenlearning.com\/assessments\/load?assessment_id=23319&#38;embed=1&#38;external_user_id=&#38;external_context_id=&#38;iframe_resize_id=lumen_assessment_23319\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:400px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-2577\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Other Sources of Income. <strong>Authored by<\/strong>: Joseph Cooke. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li><strong>Authored by<\/strong>: StockSnap. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/pixabay.com\/photos\/people-men-women-graduation-school-2562626\/\">https:\/\/pixabay.com\/photos\/people-men-women-graduation-school-2562626\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/cc0\">CC0: No Rights Reserved<\/a><\/em>. <strong>License Terms<\/strong>: https:\/\/pixabay.com\/service\/terms\/#license<\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">All rights reserved content<\/div><ul class=\"citation-list\"><li>5 Tricks for Paying for College. <strong>Authored by<\/strong>: CNBC. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.cnbc.com\/video\/2018\/04\/16\/5-tricks-for-paying-for-college.html\">https:\/\/www.cnbc.com\/video\/2018\/04\/16\/5-tricks-for-paying-for-college.html<\/a>. <strong>License<\/strong>: <em>All Rights Reserved<\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":17,"menu_order":5,"template":"","meta":{"_candela_citation":"[{\"type\":\"original\",\"description\":\"Other Sources of Income\",\"author\":\"Joseph Cooke\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"},{\"type\":\"copyrighted_video\",\"description\":\"5 Tricks for Paying for College\",\"author\":\"CNBC\",\"organization\":\"\",\"url\":\"https:\/\/www.cnbc.com\/video\/2018\/04\/16\/5-tricks-for-paying-for-college.html\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"\",\"author\":\"StockSnap\",\"organization\":\"\",\"url\":\"https:\/\/pixabay.com\/photos\/people-men-women-graduation-school-2562626\/\",\"project\":\"\",\"license\":\"cc0\",\"license_terms\":\"https:\/\/pixabay.com\/service\/terms\/#license\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-2577","chapter","type-chapter","status-publish","hentry"],"part":2570,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/users\/17"}],"version-history":[{"count":13,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2577\/revisions"}],"predecessor-version":[{"id":6454,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2577\/revisions\/6454"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/parts\/2570"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapters\/2577\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/media?parent=2577"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/pressbooks\/v2\/chapter-type?post=2577"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/contributor?post=2577"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/wp-json\/wp\/v2\/license?post=2577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}