<p>If your AGI is indeed $78,000 and you have no other assets (savings, CDs, checking accounts, etc) you might receive finaid. But as others have pointed out, the FAFSA uses its own methodology to determine aid. Many private schools use additional information from the CSS Profile, and/or their own finaid forms. These include additional assets such as home equity. Also, some of those "deductions" for business expenses may be added back in using institutional methodology. Re: your question about living in Montana vs. living in NYC...it doesn't matter.</p>
<p>Did someone misinterpret AGI....unless the father has large business losses to offset his other income? AGI is before itemized deductions and exemptions.</p>
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<blockquote> <p>unless the father has large business losses to offset his other income?>></p> </blockquote>
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<p>Exactly...from what the OP is saying ....the losses are MORE than the AGI. That would be very suspect, I would think.</p>
<p>If your family owns a million dollar 2-bedroom apartment in NYC (an average apartment according to the NY Times), you might get a loan for your EC shortfall but don't expect more from a private college. It won't even be true fin. aid. Anyone can get a Plus Loan. In fact, your family will be able to borrow tens of thousands of dollars with minimal credit analysis.</p>
<p>GI was 195k
AGI was 78k</p>
<p>I don't know the reasons why but I know those are the values.
And no, our apartment wasn't A MILLION DOLLARS haha.
I WISH!</p>
<p>And on the tax forms, I personally saw the 195k and the 78k in their appropriate boxes.</p>
<p>Alright, whatever.
I'm not sure -- I'll just wait until whatever happens.</p>
<p>Thanks guys.</p>
<p>He's probably self employed. Gross on Schedule C could very easily be 195 K and after expenses, leave a net profit in the 80K range. And even that can be offset by a hefty health insurance premium deduction and an IRA or SEP deduction to get the AGI down yet further.</p>
<p>Self employed people have some advantages when it comes to applying for financial aid.</p>
<p>Hm..
He works for a big life insurance company, so he's not self-employed.</p>
<p>AHHHHHHH I DON'T KNOW..</p>
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<blockquote> <p>He works for a big life insurance company, so he's not self-employed.>></p> </blockquote>
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<p>Then this makes NO sense.</p>
<p>Is he an independant contractor for the life insurance company, meaning that he is self employed, but has one big client, the life insurance company? Maybe he has to pay for his travel expenses-he is on the road traveling for them, right? If this were the case, health and life insurance would be purchased by your father rather than provided by the company. I think you need to ask him instead of guessing, but I think that if he is an independant contractor, and has one company as a client, it is possible, but I don't really know.</p>
<p>Regardless to what the numbers flesh out to be, you need to have a straight talk with both your parents regarding how much they want to and are willing to contribute toward your education. Based on your preliminary numbers (and the fact that you probably have some equity in your NYC apartment) you will most likely not get financial aid other than some loans. (I think this is the point which you should operate from and any aid that you do get will be gravy). </p>
<p>If the worse case scenario happens if you get no aid, to what extent are your parents willing to pay or borrow for your education? IF they tell you they are not willing to foot the 40K then you may have to come down a tier or look at schools where you are lined up to get merit money. In addition, you should still be looking for outsde scholarships. Because there are so many variables and your parents financial situation does not seem to be a straight forward one (and I agree with Thumper about giving out too much personal info in cyberspace), you may have to let the process play it self out. IF you are using FA calaculators I would also suggest you run your numbers using both the federal and institutional methodologies because those numbers will also vary.</p>
<p>To get AGI from GI, you can subtract moving expenses (not likely in this case), alimony paid (did your father have a previous marriage?), student loan interest and tuition and fees deduction (not likely - one child, and the parents have surely paid for their own loans already), IRA deduction (and max is what, 3G)?</p>
<p>The other deductions are for the self-employed. The only way a HUGE income can come down to 78K is if you pay self-employed health insurance (which can be $12,000 per year), and maybe put the MAX in a self-employed SEP (currently $41,000), plus 1/2 of self-employment tax (say around $15,000?). </p>
<p>This still doesn't bring it anywhere NEAR $78,000 (again, unless there is a huge alimony being paid).</p>
<p>My advice is to do what my kids did - applied for outside scholarships and fellowships. One child alone got well over $40,000, without filling out a FAFSA.</p>
<p>nedad you are right, that still does not add up. There is also probably a car and business travel costs, and that still does not add up.</p>
<p>And the car and business travel costs wouldn't even get deducted until AFTER one reaches the AGI (which is the bottom line of the first page of the 1040 form). Itemized deductions come off the second page.</p>
<p>Even if the filer had business travel costs that he/she deducted off a schedule C or another business form, those would be BEFORE the Gross Income (the front page of Form 1040, under INCOME, includes business income AFTER those expenses).</p>
<p>So it really is a "puzzlement" (as the King of Siam said in the musical "The King and I") how anyone could go from a $190,000 Gross Income to a $78,000 Adjusted Gross Income, without, as I said, huge alimony payments!</p>
<p>Yeah-- but maybe he means 'gross revenue' (on schedule C), not 'total income' (line 22 on 1040). There is no 'gross income' line as far as I can tell-- so my guess is that Dad's a schedule C filer with significant business expenses to offset his significant revenue.</p>
<p>Line 22 of the 2004 1040 form is for Total Income (which is the same as GROSS INCOME...it's your income without any adjustments). Things which are allowed to be subtracted from that to compute AGI (which is on line 36...bottom of first page) are educator expenses (cap $250), certain business expenses for artists, performer etc, IRA deduction, student loan interest, tuition deduction (based on college tuition paid...cap $4000), Health savings accounts, moving expenses, 1/2 of self employment tax, SEP, Penalty on early withdrawal of savings, Alimony paid.THAT IS IT. If this person is not self employed, many of these items do NOT apply at all. Business loss (schedule C, line 12) is taken before the Gross income. However, that would be a LOT of personal expense....a LOT. Something is not computing here...but at this point I think it's between the OP, parents, and the finaid office at the schools.</p>
<p>I just came here to ask a question but it's turning into chaos.</p>
<p>I guess I posted insufficient information, but as others have said, it's not wise to post so much info on the internet.
So I'll just drop it.</p>
<p>Thanks for the help guys, but I think I found my answer.</p>