<p>All financial aid applicants are asked for personal tax returns and all financial aid applicants who own businesses are asked for business tax returns, so it is neither “good” nor “bad.” </p>
<p>The unwelcome surprise (the “bad”) for business owners is that business losses listed on your personal tax return are added back into income - not just at USC, but across the board in financial aid calculations. Many people erroneously do not add the losses back in when they complete the FAFSA, and so the schools are required by the federal government to make that correction if the discrepancy appears on the tax returns.</p>