If no W-2s (income from stock trading), will the FASFA just be looking at Taxable Income?
FAFSA can import the 1040 forms and it will pull the reported income from all sources - W2, 1099s, 1098s, and/or others as applicable. There is a process for reporting income from stock trading.
There are a lot of contract/freelance workers who do not have W2s. It is not that rare.
If applying to any colleges that require the CSS form, that will dig deeper.
thanks. will they just take “taxable income” from the taxes in 2022-2023 FASFA?
The income used for financial aid purposes is taxable as well as non-taxable income.
Why are you asking?
A capital gain from trading stocks is taxable income, and needs to be reported on both FAFSA and Profile. Gains (and losses) from stock trading are not reported on a W-2. Form W-2 is used for reporting an employee’s earned income. Gains and losses from stock transactions are typically reported on a Form 1099-B. In any event, income from trading stocks will end up being declared on a 1040 as a capital gain (usually flowing through a Schedule D).
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