<p>Does my parents' seperate incomes have to total up to the adjusted gross income. Since my dad is self employed he went to his tax man with the FAFSA app to figure out how much he made in 06. The tax man gave him his income, but when my mom and dad's income is added together it is a couple thousand dollars short from the adjusted gross income on the IRS 1040. Is this ok?</p>
<p>It should add up. It adds up on the tax return...it should add up for the FAFSA. The number you use on the FAFSA is the AGI from the 1040 form which should be the total of salaries added together along with interest income and a few other things.</p>
<p>No-- they are two different questions-- and they probably won't add up.</p>
<p>Your parents combined income from work + interest + IRA distributions + pension distributions + some other stuff = TOTAL Income.</p>
<p>Then you have to subtract the following adjustments to income from TOTAL Income to get AGI:</p>
<p>Half your dad's self employment tax (from Sched SE- this may be the big difference in your case)
Health Savings Account contributions
Educator Expenses
Self-Employed Health INsurance premiums
IRA contributions (this gets added in later via FAFSA, though)
Student Loan Interest
Tution & Fees deduction
(and some other stuff)</p>
<p>Then you get the AGI.</p>
<p>So it's unlikely that the sum of your parent's earned income would equal their AGI.</p>