<p>I'm a self-employed contractor/consultant, and trying to use the College Board net price calculators for a number of private schools. I am unclear on the 3 lines where income is entered, even after searching the CC threads on the same topic. </p>
<p>My specific questions are on the following 3 items: </p>
<p>1) How much did your parents earn in wages, salaries, and tips in the most recent tax year? -- instructions indicate this is from line 7 of 1040. Is this $0, since I am paid through 1099's, not through a W2?</p>
<p>2) How much did parent 1 earn from work (instructions point to 1040 lines 7, 12, 18 of 1040)? Is this my gross (1099) business income (not AGI) from Schedule C. </p>
<p>3) How much did your parents have in business income or losses? This is the one I am most puzzled about - as a self-employed person, should this be $0, or the same as #2 above (or something different?). </p>
<p>Any insights much appreciated!</p>
<p>Federal aid uses a simplified way of looking at income, so they use your net income when determining EFC. Private colleges will often add back some of the deductions, which is why you see the questions asked in this manner for the NPC. Just follow the instructions. They are asking for lines on the 1040, so give them the numbers from the lines they are requesting. #3 is going to be whatever is on line 12, I would think.</p>
<p>Thanks, Kelsmom,</p>
<p>So based on this, my lines 2 and 3 above would both be the same as my 1099 total income for the year, while my line #1 would be $0…does this sound right?</p>
<p>Your 1099 income is more than what you report on line 12, isn’t it? Surely it’s reduced by your deductions. If you don’t take deductions, and if line 12=1099 income, then it would be the same as your 1099.</p>
<p>Just be aware that a number of SCHOOLS’ NPCs state that their own estimates may not be accurate for the self-employed.</p>
<p>Have you tried the NPCs that are on the schools’ websites?</p>
<p>Thanks all…I appreciate the suggestions and clarifications. </p>
<p>Yes, I have tried the NPCs on the college sites…good way to double check.</p>
Simple freelance self employment with, let’s say for simplicity, zero business deductions, would, I think, be effectively the same as wage income.
Please do not resurrect old threads They should be used for reference purposes only.