<p>My husband and I own a small business that opened in May of 2010. We are filling out the CSS (due 2/1). based on 2010 taxes which include income from an outside full-time job that my husband no longer has. Our 2011 taxes will be the first full year with our business and our small paycheck with w2s. All of our income is coming from our business which employs 7 people (including us). We mostly take a draw right now because at the end of the day, we still aren't making a profit with all of our business expenses. So estimates using the 2010 taxes will be completely different from our 2011 taxes. </p>
<p>Basically, does anyone have any idea how owning a small business affects the EFC when your taxed income is so small?</p>
<p>You need to do your estimated Profile with figures that are estimated for 2011…especially if those are significantly different from 2010. So…I would suggest you get your business finance information and use the info from end of year to determine what to put on that Profile. Your 2010 data sounds like it is not relevant.</p>
<p>Agreed. We also have a small(er) business. My H has had to work hard to complete the taxes. You should very quickly be able to determine the business income and maybe the expenses. You also know how much you paid yourself (requires a W2), so just use those numbers to guestimate your 2011 tax information. BTW, you can no longer deduct insurance premiums.</p>
<p>You most definitely want the more accurate reflection of your financial status when applying for FA.</p>
<p>We mostly take a draw right now because at the end of the day, we still aren’t making a profit with all of our business expenses.</p>
<p>Other business owners have reported some of the universities that use CSS Profile will “add back in” some business expense deductions - which then increases your income and then a larger family contribution is expected.</p>
<p>Recently a Realtor contacted me about her child’s ED FA offer. The ivy school added back in a bunch of her deductions and gave a much higher family contribution then what they expected.</p>