100 STAT. 1316
PUBLIC LAW 99-498—OCT. 17, 1986 income also is included in computing effective family income, the assets of that parent's spouse shall also be included. "(1) The Secretary shall promulgate special regulations to permit, in the computation of family contributions for the programs under this subpart for any academic year, the exclusion from family income of any proceeds of a sale of farm or business assets of that family if such sale results from a voluntary or involuntary foreclosure, forfeiture, liquidation, or bankruptcy. "(h) CONTRIBUTION FROM STUDENT'S (AND SPOUSE'S) INCOME.—The
contribution from student's (and spouse's) income is determined by calculating the student's (and spouse's) effective income, as determined in accordance with subsection (i), by deducting the total offsets against income, as determined in accordance with subsection (j), and by assessing the results in accordance with subsection (k). "(i) DETERMINATION OF STUDENT'S (AND SPOUSE'S) EFFECTIVE
INCOME.—The effective income of the student (and spouse) is equal to— "(1) the sum of— "(A) the adjusted gross income of the student (and spouse) as reported to the Internal Revenue Service for the year immediately preceding the award year, or income earned from work other than amounts earned under part C of this title, but not reported on a Federal income tax return; and "(B) the total annual amount of untaxed income and benefits received by the student (and spouse) in the year ' ' immediately preceding the award year; minus "(2) the amount of United States income tax paid or payable by the student (and spouse) in the tax year preceding the award year. "(j) TOTAL OFFSETS AGAINST STUDENT'S (AND SPOUSE'S) INCOME.—
Total offsets against student's (and spouse's) income are determined by deducting— "(1) a dependent student offset of $3,500, or $5,100 in the case of a dependent student with a spouse; and "(2) if the parental effective family income (as determined under subsection (f)) is a negative amount, the amount, if any, by which the result of the subtraction performed under subsection (g)(5) is less than zero. "(k) ASSESSMENT OF STUDENT'S (AND SPOUSE'S) INCOME.—If the
student's (and spouse's) effective income (as determined under subsection (i)) minus the total offsets (as determined under subsection (j)) is a negative amount, the contribution from student income is zero. If the student's (and spouse's) effective income is a positive amount, multiply it by 75 percent to determine the contribution from student's income. "(1) DETERMINATION OF CONTRIBUTION FROM STUDENT'S (AND SPOUSE'S) ASSETS.—The contribution from the student's (and
spouse's) assets is determined by calculating the net assets of the student (and spouse) and multiplying the amount by 33 percent. "ELIGIBILITY DETERMINATION FOR INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE 20 USC 1070a-3.
" SEC. 411C.
(a)
COMPUTATION
OF
STUDENT
AID
INDEX.—For
independent students with dependents other than a spouse, the student aid index is equal to the amount determined by—
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