Tax/fafsa question ! Please help !

Paying for College
1

<p>So on the FAFSA application it asks for AGI, and both of my parents seperate income.</p>

<p>My parents AGI is about 40000, But my mom makes about 37000. My dad only adds up to about 3,000.</p>

<p>But he actually makes about 14000 but he has an independent business, so after all the the expenses it boils down to only 3000 of the AGI. So I know for my mom I put her 37000 for personal income, but do I put the 14000 or just the 3000 for my dads personal income?</p>

<p>Please and Thank You !</p>

2

<p>Net income from his business, not the gross income.</p>

3

<p>AGI is a specific line on the tax form. Put that number down. You are over thinking it.</p>

4

<p>No i understand the AGI thats not my question, for the Fafsa application it says my fathers separate income, so do I put the 3000 or the 14000 for him?</p>

5

<p>3000 (net income from his business)</p>

6

<p>4kidsdad is right. It should be from line 12 of the 1040. If you are only doing estimates now, you could look at your parent’s 2011 1040 to see what it was last year. Here is the entire explanation:</p>

<p><a href=“https://faaaccess.ed.gov/fotw1213/help/fotw19e.htm[/url]”>https://faaaccess.ed.gov/fotw1213/help/fotw19e.htm&lt;/a&gt;&lt;/p&gt;

7

<p>

</p>

<p>The question is: What is your Dad’s earnings contribution to AGI? If the total AGI is $40,000, and your mother contributes $37,000, and assuming no other income or losses, then your Dad must be $3,000.</p>

<p>Note: The $3,000 probably comes from Schedule C. That is the number (the number that transfers from Schedule C to the 1040).</p>

8

<p>The numbers don’t have to add up. Mom’s income and dad’s income don’t have to equal the AGI. Mine never do because 1/2 SE tax on a whole income package reduces the AGI. Operadad is right. Follow the FAFSA instructions and pull the number off the appropriate line on your tax return</p>

9

<p>Okay Thanks a bunch everyone !!</p>