Hi, I am somewhat confused on if you report before tax or after tax income on your Fafsa, as I have heard contradicting statements on the matter. This is definitely important for me too, since my parents do have to pay a lot of taxes due to their income.
You report adjusted gross income on FAFSA. See page 19, Q36 on this guide to filling out FAFSA. https://studentaid.ed.gov/sa/sites/default/files/2019-20-completing-fafsa.pdf
You and your parents may be able to use the IRS data retrieval tool, which automatically populates the necessary FAFSA info.
I believe they want AGI.
Adjusted Gross Income (AGI) is defined as gross income minus adjustments to income. We suggest you refer to your 2018 federal income tax return to get a quick estimate of your 2018 AGI. On your 2018 return, please refer to:
Line 4 if you filed a Form 1040EZ.
Line 21 if you filed a Form 1040A.
Line 37 if you filed a Form 1040.
There is now only one form for taxes, no EZ or A any more.
You report AGI and may have to add back in some income that is excluded from AGI, such as 401k contributions. The FAFSA then gives credit for taxes paid.
True, but that doesn’t matter for financial aid purposes until the FAFSA for academic year 2020-2021 becomes available on October 1 this year.
This student is a HS sophomore, I believe…so he won’t start college until 2021.