International student here.
In the Parent Tax Return section, it asks for “Wages, salaries, commissions, and tips”, and it asks for each parent “income from work”. What is the difference between the first and the latter? And should I fill the parent’s income after or before deducting the taxes?
Yes, it’s confusing. Most people will use the same number for “wages, salaries, commissions and tips” and “income from work.”
From an American perspective, wages, salaries, commissions and tips are sources of income from work that would be reported on the tax forms we receive from our employer. (Yes, we keep track of tips for tipped employees.) “Income from work” includes all of the former, plus any income that does not show up on our earnings statements.
Maybe your neighbor paid you to walk their dog. Maybe you are selling drugs. Maybe you got more tips than reported on your earnings statements. Maybe your employer paid you cash for working overtime and did not report the overtime income on your tax statements.
Here’s what the Profile documentation says about “income from work”:
As to your second question, Americans usually report all income before taxes are deducted. There’ll be space later to itemize the taxes you paid.
@b@r!um It asks me to include the income from work for both of my parents, but there is only one option for the “wages, salaries, commissions and tips”. Should I sum up both of my parents’ income from work for that option?
Jeez, who designed that stupid form?
Yes, I would add the wages etc of both of your parents for that field, and then separate them out for the individual “income from work” field.
@b@r!um Thank you so much!! It’s the stupid college board who made this form.