<p>When it asks how much your parents income tax was, and they haven't filed yet, but you do have thier W-2. What exactly do they expect you to put there?</p>
<p>I assume youre talking about FAFSA line 36. Their W-2s may/may not be all you need to answer this question. For example, they may have several CDs which paid them interest. This interest (which is taxable income) would not show up on W2s, but on 1099s. Because of such interest, they may owe more in taxes. Another example, your parents may have claimed more dependents than they really have on their W4s. The effect of this is that they would have had less deducted from their paychecks, giving them more take home pay, but it could cause them to owe more in taxes.</p>
<p>Your parents should estimate. Id probably estimate on the high side because the amount of income taxes they paid will be treated as a deduction by FAFSA, meaning it may get you more aid when your EFC is calculated. Dont exaggerate, kinda right church, wrong pew thing.</p>
<p>If their situation hasn't changed majorly from 2004, you can use the prior year's tax return as a guide to how much they might owe this year.</p>