My husband has an S Corporation and therefore doesn’t have a W-2. I put $0 for him under income earned on the FAFSA. Should I have incuded S Corporation profit there?
No.
Also, S-Corp officers are statutorily employees. If the company is profitable and he either takes money out of the company or directs the company to pay any personal expenses, and he performs any services at all for the company, he’s required by law to treat at least some of the money coming out for his benefit as wages. It’s been probably five years since I’ve heard a competent tax return preparer admit they’d be willing to sign an S-Corp return with no officer compensation.