<p>It's more complicated than that. OK to estimate for now, though, and it will be clearer once your taxes are done.</p>
<p>From "Paying for College..." (you should also see this on the 1040):</p>
<p>EARNED income includes wages, tips, salary, business self-income, and untaxed income (including pre-tax contributions to deferred comp 401(k) and 403(b) plans, but not IRA's or Keogh's). For the student, earned income excludes work-study income or taxable grants in excess of tuition, fees, books.</p>
<p>GROSS income is wages, tips, salary, business self income/loss, earned income plus taxable interest & dvidends, plus state/local income tax refunds, alimony, capital gains/loss, taxable IRA distributions, taxable pensions and annuties, rents, royalties, unemployment compensation, taxable SS benefits, and other taxable income.</p>
<p>ADJUSTED GROSS income (AGI) is GROSS income (above) minus:
Health Savings account deduction
Moving expenses
1/2 self-employment tax
Self-employed SEP/Simple plans
Self-Employed health insurance premiums (this is a biggie for us)
Penalty on early withdrawl of savings
Alimony paid
IRA contributions
Student Loan interest
(and a few other oddball deductions in the Adjustments to Income section)</p>
<p>It's complicated. The taxes are complicated, and the financial aid formula is complicated. BUT, the complexity allows room to manage your financial situation in the months leading up to FAFSA/Profile in order to legally maximize your potential aid.</p>