<p>When they ask for my family income, do we use the gross income, or the adjusted gross income (yearly take home)?</p>
<p>Specifically, it asks:</p>
<p>"How much did the student's mother earn from working in the most recent year? This is the amount the mother earned in wages, salaries and allocated tips, plus any business or farm income."</p>
<p>The income is generally the AGI on the 1040 with any qualified plan contributions added back. If your family owns a business, the NPC gets tricky when the school is a PROFILE school or one that uses additional info on top of the FAFSA, because the business/farm/outside type income is treated differently by different schools with some business expenses, depreciation added back to the income. </p>
<p>The way that question is worded, it sounds like the gross income on the W2 form. </p>
<p>There should be a little question mark next to each question. If you click on it, it tells you which line on your parents’ tax form to look. </p>
<p>Looks like they mean the sum of lines 7, 12, and 18 on [IRS</a> Form 1040](<a href=“http://www.irs.gov/pub/irs-pdf/f1040.pdf]IRS”>http://www.irs.gov/pub/irs-pdf/f1040.pdf).</p>
<p>If there is business or farm income involved, you may also want to run a worst case scenario where any business or farm income deductions are added back, at least for CSS Profile using schools.</p>
<p>My only special circumstances are divorce - but my noncustodial parent makes next to nothing (>$1000/yr).</p>
<p>Does each NPC work differently in this aspect? Meaning some schools may ask for AGI and some for the gross income?</p>
<p>Most schools with good financial aid require NCP information. Include the NCP’s income and assets in your NPC runs, unless you know for sure that NCP information is not required by the school.</p>
<p>If the NCP will not be cooperative with financial aid forms, be sure that some of the schools, including your safeties, will be affordable based on list price or merit scholarships, or do not require NCP information for need-based financial aid and will give you enough need-based financial aid.</p>