For CSS profle, how do you calculate parent's net income from business?

Paying for College
1

<p>Referring to CSS Profile help codes, how do you calculate parent's net income from business (PI-120D) ? Do you calculate it by subtracting parent's portion of expenses for business (BA-127B) from parent's portion of gross receipts for business (BA-126B) ? Stuck right now. Any help would be highly appreciated. Thanks.</p>

2

<p>Use this form as an estimate. Probably you will be required to send the form later.</p>

<p>Fill out questions 11-16 then use value on line 16.</p>

<p><a href=“https://college.harvard.edu/sites/default/files/BusinessFarm_Supplement_0.pdf[/url]”>https://college.harvard.edu/sites/default/files/BusinessFarm_Supplement_0.pdf&lt;/a&gt;&lt;/p&gt;

3

<p>Do I have to submit this form too even though the colleges I am applying to only mentioned CSS Profile?</p>

4

<p>You don’t have to submit it now. But you parent business supplement is likely part of their tax return and will be included when you link your FAFSA to the IRS data retrieval tool.</p>

<p>Coolweather…is that correct?</p>

5

<p>^ Parent business info for IRS is reported on different forms. This depends on whether the business is corporation, or LLC, or sole propretiary. IRS data retrieval tool is usually available only after filing returns at least 2 weeks. I was not able to retrieve the data 8 times for 2 college kids.</p>

6

<p>CSS profile colleges usually require Business/Farm supplement. Check with each college web site.
The form is usually sent together at the time you send IDOC. Some schools don’t use IDOC, so you have to mail or fax to them.</p>

7

<p>So to the OP, it seems this business/farm suplement will be requested at some point in your financial aid application process.</p>

<p>You should also be alerted…some colleges add back some business decuctions as income. These are deductions allowed by the IRS for businesses but are not for financial aid purposes.</p>