<p>We own a business which is a subchapter S corp. All our income comes from that. We do NOT file a Schedule C with our 1040. We have no other employees. </p>
<p>In registering for the CSS it seems to think that people who own a business should be self-employed. We consider ourselves as employees of the corp. Should the self-employed question be answered YES?</p>
<p>I have an S-Corp and if I remember correctly said “No” to self-employed and “Yes” to own a business.</p>
<p>I think self-employed would be sole proprietors or independent consultants who report Schedule C income.</p>
<p>For whatever it’s worth, in mortgage underwriting, the definition of “self-employed” is anyone who owns 25% or more of the company they work for. I realize fin aid is not the same as residential lending, but perhaps they have their own definition of what they consider self-employed. Is it explained anywhere on the CSS Profile form?</p>
<p>Someone posted the following on another thread…</p>
<p>*From my experience: we (parents) own a subchapter S corporation. Any income that the corporation makes (revenues minus expenses) gets reported to the IRS and we must include it on our personal income tax forms (1040s) and is reportable on both FAFSA and Profile.</p>
<p>However, a major difference between FAFSA and Profile is that FAFSA does not include the value of the business as an asset (for companies with fewer than 100 employees, which includes our company). I believe there is also a requirement regarding the percentage of ownership as well.
CSS/Profile schools may also want to know the value of the corporation as an asset, and may use that information in determining aid.*</p>
<p>It’s not explained anywhere in the docs or help. All income shows up in some bucket some where on the CSS profile, it just a matter of which bucket. I was worried that since the questions you receive are “customized” by the answers you give during registration, I would get different questions depending on self-employeed answer.</p>
<p>In “Paying for College Without Going Broke”, it indicates not to check self-employed for Sub-S Corps. This book mentions that it is a difference in profits from the Sub-S not being subject to FICA and Medicare taxes and such, whereas self-employed income is all subject to those taxes. FYI - wages from a Sub-S are subject to those taxes too.</p>
<p>From the Profile instructions (2008-2009)</p>
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<p><a href=“College Board - SAT, AP, College Search and Admission Tools”>College Board - SAT, AP, College Search and Admission Tools;
<p>Can you be self-employed if it doesn’t qualify as a “business”? If you are not self-employed or employed by someone else, but you work and as a result you have money, would you say that you are unemployed or what?</p>
<p>If you work and are receiving income from that work (over $600/year, if I remember correctly), then you’ll get a 1099-MISC, which will be reported on your Schedule C. See above for Schedule C employees.</p>
<p>Who would issue that 1099-MISC form, vballmom? In my previous post, I asked what you would be if you were not employed by someone else, but still you worked and had money as a result.</p>
<p>vballmom - Notice that 17 says “normally defined” for the self-employment question and it also says “normally reports self-employment income on Sched C”. Those are not very exact in wording. However question 18 is definite on the business ownership.</p>
<p>sylvan - We condisider ourselves employees of the corp, since the corp provides W2s at year end. We also are the owners of the corp and receive a K-1 (1020S) at year end also. Info and income from both are reported on our 1040. But not on a Sched C.</p>
<p>I guess I’m not clear on where the money would come from, sylvan. Are you talking about a job under the table?</p>
<p>I work as an adjunct lecturer, but my current contract ends in December. I don’t have a contract (or expect to) for spring, so I am going to be working on our rental units (apartments), trying to improve the current and future cashflow situations where ever I can. It will be a part-time thing, since DH doesn’t do any work at home, and I have to deal with all of that too. </p>
<p>On the CSS Profile, I stated that I expect to be unemployed, but that doesn’t really seem “true” KWIM?</p>
<p>Sylvan I see now what your situation is (sorta 
)</p>
<p>So I guess it would depend on how your rental unit business is set up - are you declaring income/expenses/depreciation on your individual taxes, or do the properties fall under a corp or LLC? If you’re taking cash out of a corporation to pay yourself for your time, that cash needs to be accounted for as a business expense, and the business would issue you a 1099-MISC. I send 1099s every year to the contract employees I hire for my S-Corp. If on the other hand there’s no formal business and you’re reporting everything on your 1040, then I’m not sure where the $$s you pay yourself would appear, but I’m guessing it would still need to be reported as income on your 1040.</p>
<p>I think how this question (of how you’re paid) is answered and where those $$s appear on your taxes will then guide you as to whether or not you check the “self-employed” box on Profile.</p>
<p>I’m not a tax expert, so best to consult your accountant :)</p>