<p>Duke University is part of the Presidents' Group, which has their own methodology for determining financial need. I didn't expect to find specific details on how their methodology works and of course, I didn't. However, I can't begin to understand these tax forms that my parents filled out. If I add up my dad and my mom's total income (line 22 on the 1040), I get 57.5k.</p>
<p>"We look at total income, not adjusted gross income, and your parents' total income is over $60000."</p>
<p>For Duke, parental contribution is $0 for families making under $60,000... but parental contribution for my family is $2,400. I'm wondering how the 57.5k could turn into 60k. I mean... do I add anything from the tax and credits or other stuff? Anyone with any reasonable conjectures?</p>
<p>Do your parents contribute to a 401K/403b or company savings plan? If yes, while these contributions "reduce" your income as the monies are taken out on a before tax basis, for financial aid purposes, the contibutions are added back in (which could be the most simple direct way of getting back to 60K).</p>
<p>As sybbie719 noted, most schools look at Adjusted Gross Income, 1040 line 37. Lines 23-36 deduct various items from total income to arrive at AGI. The most common deduction is for an IRA. Many schools will add that back into the total income as being available for college expenses during the college years.</p>
<p>Still, parental contribution of $2,400 isn't bad.</p>