Hi,
I was looking at our son’s FAFSA and the amount that we entered on Line 88 changed after we retrieved our data from the IRS. Does anyone know the formula that is used to calculate this amount? It changed by over $3,000.
What’s line 88?
It asked for total of lines 7,12, 18, and box 14 from schedule K. We entered the amount from our return that had already been filed and processed. When we retrieved the date from the IRS and linked it with our FAFSA, the amount increased and no-one can tell us why. I called FAFSA, the IRS, and our accountant.
from our 1040 federal return
https://fafsa.ed.gov/fotw1617/help/parentIncome.htm
^Did you follow FAFSA instructions for the income from working?
When you used the IRS data retrieval, the amount for income from working was different than adding these fields on the 1040?
Usually DRT takes the combined income from the tax return and then you allocate it to parent 1 and 2.
Did schedule K1 show a loss?
For schedule K-1, you should only have entered box 14 if it was code A. If the amount in box 14, code A was negative, you should have entered a 0. If you entered a negative number, the DRT would correct it to 0.