We are self employed, no employees, and file 1040. FAFSA asked for income and the little pop up box says line 12. However, that line is after the deductions from schedule C. Is it correct to enter line 12 or the income on line 1 of the schedule C. Any help is greatly appreciated.
Follow the instructions as written and enter the amount of line 12.
FAFSA is not interested in recalculating your income and deductions. They just want to know what you reported to the IRS. In this case they want to know how much money you reported earning after subtracting your legitimate business costs.
Thank you @Otterma