<p>Why does this have to be so complicated. I'm filling out the FAFSA and PROFILE for schools, and I seriously cannot figure out half of it, with my parents taxes sitting right in front of me. Anyway, this is what's bugging me. When they ask for my parent's untaxed income (Question 55M), how do I figure that out? The worksheet on the PROFILE leads me to believe that it's all 0, until that last "all other untaxed income." If, let's say my parent's adjusted gross income is 60 K (line 36, form 1040) and the taxable income is 30,000 (line 42), does that mean that the untaxed income is 30,000 (the difference between the two numbers?)</p>
<p>Also, if most (all, actually) of my income comes from getting paid in cash, how do I report that? Obviously I'm not paying taxes on it, so does all of it go in the untaxed income section? I already put it down in my activity/employment section of the college application, so obviously they KNOW I have some sort of job. Any help would be greatly appreciated it, or at least, pointing me to where I can get help would be great too.</p>
<p>You could ask the college financial aid offices for help.</p>
<p>You need to use Worksheets A and B on the FAFSA to figure this, or the similar Worksheet in the Profile. The sum of Profile questions 55 a, b, c, d, e, f, i, j, k, l, and m (exclude 55 g and h) should be the same number as the sum of your answers for FAFSA 78 and 79.</p>
<p>Don't try to do it directly from your tax returns without the worksheets.</p>
<p>And hopefully, you didn't work enough to have any tax obligation, or filing obligation. If that's the case, just put your income down as untaxed income. If you made enough to file and had a tax libility, but didn't file or pay tax, you're in a bit of a bind. You could file belatedly and pay a penalty along with the taxes, so everything matches.</p>
<p>untax income: rents, grandparents monetary gifts to grandchildren. Disability payments, life insurance proceeds, etc.</p>
<p>Thanks for the help guys, I think I got it now. Btw, I didn't pay taxes in Jan. of this year because I didn't make enough money too, but next January I will since I've been working the entire year.</p>