So, I’ve tried to find a straightforward answer to my question: is there information from the S corp form 1120S that needs to be included in the calculation for parents “income from work” as asked on questions 88 and 89? If we’re joint filers, self-employed LLC filing S Corp, and so don’t use the form1065 K-1; will we just report what shows as income from W2s? The pass-through business income shows up on the 1040 and is included in the totals used to calculate AGI, but is not explicitly asked for in the formula used to report parent’s income on the FAFSA.
Just wondering if you got an answer to this question. Thanks for your help.
Do you receive W2’s from the LLC? Or just the pass-through income reported on 1120s K-1’s? Shareholders who work for an S-Corp are supposed to be paid a “reasonable” wage subject to payroll taxes (which would be reported on a W2), before taking distributions (which would be reported on a K-1). But I don’t know how it is handled with an LLC that is not actually an S-Corp but has elected s-corp treatment for federal tax purposes…
Just tagging @2toschool who might see the tag…even though they haven’t been active on this forum since December.
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The pass-through income will be reflected in the AGI reported on a different question. It is not specifically reported anywhere else iirc. 88/89 is for w2 income.