I am currently a junior in high school, and my parents are self-employed as artists. Their gross income is pretty high (around $200k), but their net is super low due to business expenses (around $40k). I’m concerned that when I apply for scholarships, I won’t be able to receive any money since their gross income is high. My parents won’t be able to send me to college if I don’t receive financial aid, and I’m wondering if there’s any way to report net income on application forms.
What do they spend the $160k on?
You need to apply for schools with merit aid instead. Your income is to high for need based aid. What are your stats? Look at the pinned threads in this forum for merit aid options.
You aren’t likely to get any need based aid with that income. I think colleges use gross income, not net, to determine need. Your parents may be able to write off a lot of expenses when they do their taxes, but colleges add a lot of those back in. It wouldn’t make sense for colleges to give need based aid to families who earn $200k but write off 80% of it when there are plenty of families whose total income is $40k.
Your best bet is to find schools that offer large merit for your stats. If you don’t qualify for any (or not enough to be affordable), you’re not alone. Students whose parents earn too much to receive need based grants but don’t qualify for merit generally commute to a 4-year school or start at a community college.
The Net Price Calculators won’t be accurate for you because your parents are self-employed, so start out looking for guaranteed merit. It’s also important that you find a financial safety (a school where you’re likely to get in, that you’re sure your parents can afford, and that you’d be happy to attend).
your parents who are artists hav $160,000 a year of business expenses? For what?
Diamond and gold (raw materials)?
One would assume the diamond and gold would net a large profit once sold.
To the OP…here is your issue. For business owners, there are deductions allowed by the IRS that are not allowed for financial aid purposes. The school can add back those deductions as income. So, it is very possible that your family income will be much higher as calculated by the school.
What are your stats? What is your major? We will tell you which schools will give you large merit for stats.