N.Y. Education Law § 663: Income, a determinant of amount of awards

§ 663. Income, a determinant of amount of awards. 1. Income defined.

Except as otherwise provided in this section, "income" shall be the

total of the combined net taxable income and income from pensions of New

York state, local governments, the federal government and any private

employer of the applicant, the applicant's spouse, and the applicant's

parents, including any pension and annuity income excluded for purposes

of taxation pursuant to paragraph three-a of subsection (c) of section

six hundred twelve of the tax law, as reported in New York state income

tax returns for the calendar year coinciding with the tax year

established by the U.S. department of education to qualify applicants

for federal student financial aid programs authorized by title IV of the

Higher Education Act of 1965, as amended, for the school year in which

application for assistance is made, except that any amount received by

an applicant as a scholarship at an educational institution or as a

fellowship grant, including the value of contributed services and

accommodations, shall not be included within the definition of "income"

for the purposes of this article. The term "parent" shall include birth

parents, stepparents, adoptive parents and the spouse of an adoptive

parent. Income, if not a whole dollar amount, shall be assumed to be

equal to the next lowest whole dollar amount. Any change in the status

of an applicant with regard to the persons responsible for the

applicant's support occurring after the beginning of any semester shall

not be considered to change the applicant's award for that semester.

2. Separation of parents. If the parents of an applicant are living

apart, the income of the applicant shall be based upon the income of

that parent with whom the applicant is living; or who exercises custody

if the applicant is a minor, or would exercise custody if the applicant

were a minor, and any appropriate payments for the support of the

applicant from the other parent.

3. Exclusion of parental income in the determination of the amount of

an award. a. In determining the amount of an award for students, the

income of the parents shall be excluded if the student has been

emancipated from his parents.

b. A student shall be considered emancipated if:

(1) The applicant is a student who was married on or before December

thirty-first of the calendar year prior to the beginning of the academic

year for which application is made or is an undergraduate student who

has reached the age of twenty-two on or before June thirtieth prior to

the academic year for which application is made and who, during the

calendar year next preceding the semester, quarter or term of attendance

for which application is made and at all times subsequent thereto up to

and including the entire period for which application is made:

(i) has not resided and will not reside with his or her parents for

more than six weeks; and

(ii) has not and will not receive financial assistance or support

valued in excess of seven hundred fifty dollars from his or her parents;

and

(iii) has not and will not be claimed as a dependent by either parent

for purposes of either federal or state income tax; or

(2) The applicant has reached the age of thirty-five on or before June

thirtieth prior to the academic year for which application is made; or

(3) The applicant was enlisted in full time active military service in

the armed forces of the United States and (i) has been honorably

discharged from such service, or (ii) has a qualifying condition, as

defined in section one of the veterans' services law, and has received a

discharge other than bad conduct or dishonorable from such service, or

(iii) is a discharged LGBT veteran, as defined in section one of the

veterans' services law, and has received a discharge other than bad

conduct or dishonorable from such service, and, provided, however, that

the applicant has not and will not be claimed as a dependent by either

parent for purposes of either federal or state income tax.

c. In making a determination of where a student resides for the

purposes of item (i) of subparagraph one hereof, the president may

consider such criteria as he deems appropriate. Residence by the student

in an apartment, building, or other premises owned by a parent shall be

considered residence with that parent, for the purposes of this section,

even if the student makes payment therefor in the form of rent or other

considerations.

d. Any undergraduate student who was allowed to exclude parental

income pursuant to the provisions of subdivision three of section six

hundred three of this chapter as they existed prior to July first,

nineteen hundred seventy-four may continue to exclude such income for so

long as he continues to comply with such provisions.

e. In making a determination of whether a student has been claimed by

a parent as a dependent for purpose of either federal or state income

tax, the president may require the student to submit a copy of that

portion of the parents' federal income tax return which includes the

parents' signature and the list of claimed dependents.

4. Relinquishing of parental control. In determining the amount of an

award, the president may, in cases of unusual and exceptional family

circumstances warranting such action, recognize an existing condition

wherein parental control has in effect been relinquished by the parents

or others responsible for the applicant, and notwithstanding the

provisions of subdivision three of this section, the applicant has in

effect been emancipated. Provided, however, that students who have

qualified as an orphan, foster child, or ward of the court for the

purposes of federal student financial aid programs authorized by Title

IV of the Higher Education Act of 1965, as amended, shall not be

considered emancipated for the purposes of determining an award pursuant

to section six hundred sixty-seven of this article. The criteria used in

determining these cases of unusual and exceptional family circumstances

shall be established by the president with the approval of the board of

trustees and the director of the division of the budget.

5. Adjustments of income. In the determination of income for purposes

of paragraphs a and b of subdivision three of section six hundred

sixty-seven of this part if, during the academic year in which the

applicant will receive an award, one of either the parents of the

applicant or other dependent child of such parents, the spouse of the

applicant, or one or more dependent children of the applicant, in

addition to the applicant, will be in full-time attendance in an

approved program, the combined net taxable income determined under

subdivision one of this section shall be reduced by three thousand

dollars and an additional two thousand dollars for each other such

person additional to the aforesaid persons (including the applicant) who

will be in such attendance, and the resulting amount shall be deemed the

applicable income in determining the applicant's award for the academic

year.

6. Income tax return not filed or not including income outside New

York state. If a person required to report income to the corporation did

not file an appropriate New York state income tax return, or if the

return did not include income outside New York state, such person shall

report to the corporation what his income would have been had his total

income been subject to New York state income tax and had such income tax

return been filed.

7. Statement of income. An applicant, the applicant's spouse, and the

applicant's parents, if their income is included in "income" for

purposes of this article, shall file annually with the corporation, in a

manner prescribed by the president, a statement of their income, signed

and affirmed as true under penalties of perjury.

8. Verification of financial report. The state tax commission shall,

upon request by the president, compare any statement filed with the

corporation pursuant to this article or any information derived

therefrom with the state income tax returns filed by the persons making

such statement and shall report any discrepancies to the president.

9. Confidentiality of financial reports. All statements filed with the

corporation and all reports made by the state tax commission pursuant to

this section shall be deemed confidential.