How do they afford the property taxes on a high value NJ home ($20k+?) when income is only $30k?
What is going on with the business cash flow and how does cash flow (high?) compare to tax return income (low)?
Haha, I think this conversation is getting off topic, but the taxes here aren’t very high. See: http://www.joeshimkus.com/NJ-Tax-Rates-Bergen-County.aspx
The property tax rates are only about one point something! Also, when I said that our home has a high market value, I don’t by any means imply that I live in a million dollar NJ house. I just meant that it’s more expensive than that of many “typical” low-income students, mostly because of the higher costs of living around the NYC suburbs.
Anyway, I’ve found the answer to my question, thanks guys.
Obviously, the house may be bought with previous earning although the current income is low. That happens to many family after losing their job in the financial turmoil within the last decade.
Self-employed is a problem for NPCs. They may not be accurate for your family.
^ This.
With self employment or small business income, some colleges may add back employment or business deductions. You can run the NPC again using revenue instead of income to get a worse case estimate.