Page:United States Statutes at Large Volume 100 Part 2.djvu/218

 100 STAT. 1320

PUBLIC LAW 99-498—OCT. 17, 1986

ri "(1) computing the standard contribution from student's (and ^ spouse's) income determined in accordance with subsection (b); "(2) adding contribution from student's (and spouse's) assets determined in accordance with subsection (f); and "(3) dividing the resultant amount by the number of family members who will be attending, on at least a half-time basis, a program of postsecondary education during the award period for which aid under this subpart is requested. "(b) COMPUTING THE STANDARD CONTRIBUTION FROM STUDENT'S (AND SPOUSE'S) INCOME.—The standard contribution from the stu-

dent's (and spouse's) income is determined by calculating the effective family income in accordance with subsection (c); by deducting the total offsets against income, as determined in accordance with subsection (d); and by assessing the results in accordance with subsection (e). Taxes.

"(c) DETERMINATION OF EFFECTIVE FAMILY INCOME.—The effective

family income is equal to— eu! iw- '>vt! "(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 and income earned p.,, from work, other than amounts received under part C of this title, but not reported on a Federal income tax return; "(B) the total annual amount of untaxed income and benefits which is received by the student (and spouse) in the year immediately preceding the award year; and "(C) one-half of the student's total veterans educational hn^; r benefits, excluding Veterans' Administration contributory 3 iii. benefits, expected to be received during the award period; minus "(2) the sum of— "(A) the amount of United States income tax paid or payable by the student (and spouse) in the tax year preceding the award year; and "(B) an allowance for State and other taxes as determined by multiplying the student's (and spouse's) total income (as determined under paragraph (1)), by a percentage determined according to the following table: "Percentages for Computation of State and Other Tax Allowance And student's (and spouse's) total income is— If student's State or territory of residence is— less than $15,000

$15,000 or more

then the percentage is— Alaska, Puerto Rico, Wyoming American Samoa, Guam, Louisiana, Nevada, Texas, Trust Territory, Virgin Islands Florida, South Dakota, Tennessee, New Mexico North Dakota, Washington Alabama, Arizona, Arkansas, Indiana, Mississippi, Missouri, Montana, New Hampshire, Oklahoma, West Virginia Colorado, Connecticut, Georgia, Illinois, Kansas, Kentucky

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