FAFSA income question

<p>My wife has her own p/t business. Her gross income is one figure and the amount added to our adjusted gross income is lower (less business expenses, home office deduction,etc). On the FAFSA we are supposed to list her income. Which should I use? "Paying for College Without Going Broke" suggests we should use the higher amount as these figures are really used by FAFSA to figure out expenses (?). THoughts? Thanking you in advance for your input.</p>

<p>I don't like having to estimate all this with the prospect of having to redo it all once I have finished my 2010 taxes.</p>

<p>Kal Chany probably wants you to use the higher number so the FICA (expense) is calculated & deducted from your available income. </p>

<p>You are using your best estimates, it is a PITA, I know, but that is what you have to do. </p>

<p>Some of your wife’s business expenses may be added back in as income by the FA offices, like vehicle expense for instance. </p>

<p>Once your taxes are done, you may find it isn’t so bad to make the corrections! :)</p>

<p>For FAFSA, you report the amount that you will be listing on line 12 of the 1040. If it’s negative, you list 0. </p>

<p>When listing taxes paid, remember that you are ONLY reporting the amount on line 55 (do not add in the amount from line 27).</p>