Hi Can someone help me with this question? When filling out the section about parents’ income wages earned, I am self employed so do I put the gross amount or the net amount after all the deductions? Thank you
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To the poster…I think some of this might be how your business is structured…so I defer to the above posters.
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Do you not have the option to use DRT?
FAFSA’s directions/help function are quite good. On many questions there should be a question mark in a circle, click this to see more detail on how to answer a given question.
Here is a resource with instructions for completing each question. A Step-By-Step Guide To Completing The 2023-2024 FAFSA Questions
I’m pretty sure the question that the OP is asking about is one that is manually entered even if the DRT is used, questions 83 & 84. Here are the instructions:
“Questions 83 and 84 ask about earnings (wages, salaries, tips, etc.) in 2021. Answer the questions whether or not a tax return was filed. This information may be found on the W-2 forms or by adding up the following items: IRS Form 1040—line 1 (or IRS Form 1040-NR—line 1a) + Schedule 1—lines 3 + 6 + Schedule K-1 (IRS Form 1065)—Box 14 (Code A). Report the information for the parent listed in questions 57-60 in question 83 and the information for the parent listed in questions 61-64 in question 84. If a tax form line’s value is negative, treat it as a zero in your calculation.”
I am guessing that you probably have income reported on schedule 1, lines 3 and/or 6? You may or may not have other income as listed above, but the typical cases I see are on schedule 1.
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Hi yes I did use drt. The question requires manual input. It is on schedule c so my question is do I input the amount on line 1 or line 31?
You put amounts from schedule C on schedule 1, correct? For FAFSA, they only want what is on schedule 1. So maybe it was on one of the lines on schedule C that you asked about, but FAFSA isn’t asking you to look at schedule C.
I’m married and have joint filing. For parent 1 My husband I used schedule 1 and added lines 1 and 3 and 6 right? There is nothing on line 6 so I added line 1&3 and I put that amount for parent 1 but how about parent 2 which is me. My income is already added to my husband’s cause my income is on line 3 ?
I didn’t know I wasn’t suppose to look at schedule c so now I know. I’m an independent contractor so my income is on schedule 1 line 3
Yes you are right. I’m looking at schedule c to determine my own income cause I didn’t know it was also on line 3 of schedule 1. Now my question is for parent 1 do I add lines 1&3 of schedule 1 and for parent 2 do I also add lines 1&3 of schedule 1 also? That means my husband and I will have the same amount showing for parent 1 & parent 2 or do I not add and just use line 1 for parent 1’s income and line 3 for parent 2’s income. Sorry I confused you. I confused myself. I appreciate your help. Thank you
If it’s a joint business & you fill out the schedules for both of you together, you can split the total of lines 1 + 3 in half and report 1/2 for each of you. Maybe @BelknapPoint can weigh in?
It is form 1040 and personal income tax not business. I was confused on if I should combine mine line 3 schedule 1 with my husband’s line 1 schedule 1 or separate them. I’m not sure why after using drt I still have to manually input these numbers in. Don’t they already have this information since I have transferred my tax return over to them?
I’m an independent contractor but I was told that Fafsa only wants personal tax return if the business is under 100 employees right?
This particular information is used to calculate payroll taxes, IIRC, and it’s used in the EFC formula. It can’t be split out with the DRT. It needs to be split by earner.
I am confused about your income. Do you work? If so, do you receive a W2?
But you report your income on your personal return, right? (You have to report income, just not value of business, in the regulation you cite.)
I receive 1099 and my husband receives a w2 we file joint tax return
Yes I report income
So is all of the income reported on the schedule C then moved into the schedule 1 from your 1099 job? If so, line 1 + 3 from schedule 1 is your income from work, and the amount on your H’s W2 is his income from work.
Ok got it. Thank you so much
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