<p>For FAFSA financial aid, relating to tax returns, does the gross income count or the gross adjusted income? My mom's gross adjusted is 35,600, but her gross income is 49,000... She is a realtor who spends 5k on advertising and 10k on driving, but all of that is deducted on her taxes so it is not included in her gross adjusted... so will I qualify for the pell or not? Do the business expenses count against me for financial aid?</p>
<p>Plug in the numbers based on the tax return lines, which are referenced in the FAFSA instructions. Your mother probably files a Schedule C for her business income, so her earnings are reported on line 12 of the 1040 (and she is NOT eligible to file a 1040A/EZ as a result - this is another question on the FAFSA). Report THAT amount as “income from work” - as well as any amount that might be on line 7 (that may be 0). The AGI is line 37. The taxes paid is ONLY line 55. Under untaxed income, don’t forget to report any required credits, such as those you might find on lines 26, 32, 63, and 67; again, the FAFSA instructions give you line references.</p>
<p>You may or may not qualify for Pell. More is considered than just the AGI. Everything you put on the FAFSA is taken into consideration in the formula, and that is why it is all reported. :)</p>
<p>Line 12 business income says 27,616</p>
<p>Try the FAFSA web calculator.
FAFSA4casterSM
If you want to begin exploring your financial aid, FAFSA4casterSM is for you! By using FAFSA4caster, you and your family will receive an early estimate of eligibility for federal student aid.</p>
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<p>Please note…the numbers these online financial aid calculators generate are ESTIMATES ONLY. They can be a very general guideline of what your family contribution might MINIMALLY be. BUT remember that schools using the FAFSA do not meet full financial need. Any family contribution would be the MINIMUM your family would be required to pay…not the maximum.</p>
<p>Thus the reason it says it is an estimate.</p>