<p>Filling out financial aid for private school. If we are a small business with no set salary to my husband what is our "income earned from work"? On the form it says to see W2's. Is this our business gross income? Or is it the business profit? I am inclined to think it is the business profit because it is closer to the AGI amount. Thank you!</p>
<p>When you file taxes, what is your income indicated by the IRS? Those are the numbers that you’re supposed to be using.</p>
<p>Your personal income with your own personal name. Not your business income. I am under the impression that business owners pay themselves a salary and then they are taxed on that salary on a personal level, no?</p>
<p>Do you file Schedule C with your 1040 for your small business?</p>
<p>It is your W2 income. I am self employed and my company is a S-corp. I receive both shareholder distributions and W2 income. Whenever they ask for income I put in the W2 wages. This is not gross revenue for the company. And there is usually another place on the form for me to show my shareholder distributions.</p>
<p>@madison85 yes we file a scheduleC. We are a VERY small business just starting. Most payments to the business get dumped into the business account and transferred over to personal as income. As I said, it is small. The number must be in the schedule c but I am not sure which ones of my OP. Considering the questions being asked I think it is the lowest number. Or the number that gets transferred to personal as if hubby would get a 1099. Thoughts?</p>
<p>I would use Net profit on Schedule C (the number that goes to page 1 of 1040).</p>
<p>Ok, that’s what I thought. Thank you @madison85. That’s the number my accountant told me to use, but he admitts he is not a FA guy. </p>
<p>Yes, it’s the amount from the schedule C that gets transferred over to the 1040. Be aware that a higher number here will HELP you, not hurt you, because it is used to calculate your FICA and Medicare deduction, which is a subtraction from income for purposes of determining EFC. Also if both spouses have income from work (or if you are a single parent) there is an extra allowance given based on the amount of such income, up to a point. All is explained in the book, “Paying for College Without Going Broke” - highly recommended. </p>