<p>I don’t see how any 1099 income would be included in line 7 on the 1040. Line 7 is only W-2 income.</p>
<p>It’s not just line 7 that’s included in FAFSA’s “income from work”, however. And that was my mistake last year, using only line 7 in that field of FAFSA. When I read the directions more carefully this year, income from work includes line 7 (W-2 income), line 12 (business income/loss, which for me is my 1099 income), line 18 (farm income) and Box 14 of Form 1065 (partnership income).</p>
<p>If your line 12 is the amount on the 1099, then yes … you report the 1099 income. I just caution against using the 1099 income because very often line 12 is LESS than the 1099 due to deductions claimed on schedule C.</p>
<p>Hi, I randomly found this thread through the internet, while searching for help. I could use some very basic advise on qeustion #36, 2011 income tax, on the FASFA form. We don’t have our taxes filed yet and I don’t ever do them myself because I’m clueless. Is there a basic way for me to figure this? Please talk to me like I 5 years old so I’ll understand it! ha! I am really clueless on this tax stuff. That’s why I let someone else file the taxes for us! Please help!</p>
<p>To file the FAFSA you will need some figures from your final income tax return and from your child’s if your child has one. This may mean that you need to light a fire under your tax person in order to get things done quickly.</p>
<p>If your taxes do not change much from one year to the next, get last year’s return and this year’s tax paper work, and go through it all carefully yourself with one of the online programs. There is a free one for everyone at the IRS website (follow the links fo free e-filing), and others that are free for some people that are linked to the IRS as well. Some commercial products like TaxAct have free downloadable versions that will let you print and mail your forms when you are done.</p>
<p>I’ve used TurboTax, and I’ve played a bit with TaxAct. Both are almost idiot proof. If you go through all of the steps very calmly you will be able to complete these on your own. The secret is to keep yourself calm. If you feel overwhelmed it is time to save the file and take a break.</p>
<p>Thanks, I appreciate the help. My daughter does have her taxes done, so I can use hers to fill out her part. We usually always have ours filed by now and last year the FASFA was not bad at all because I was able to transfer my information. Well, we slacked this year and now I’m paying for it on the FASFA!
I’m thinking I might have to guess a little to get the FASFA filed and then go back and make corrections after we get our taxes done.</p>
<p>That would be a good idea. Complete it now with your daughter’s real “filed” status, and use “will file” for your own status. If you have last year’s return and there haven’t been any big changes you could use those figures for the “will file” version.</p>