<p>they had an adjusted gross income of -70,000 dollars. however we own a business so we make over 200,000. will we get any aid?</p>
<p>Line 21 of the tax form 1040a shows the adjusted gross income. Is that number really a negative one?</p>
<p>The business is an asset. So even with a negative income, the business will count as an asset and the income from the business is an income.</p>
<p>Unless you have a lot of siblings, and some of them in college, it is unlikely you will qualify for need based aid with an income of -70K/+200K. </p>
<p>But apply anyway because your family’s situation might be different than what you think.</p>
<p>It’s really difficult to say with self employed and business income. Some stuff causing the losses may or may not be allowed for FA purposes. I don’t have any experience with this aspect of FA but I have heard it can be complicated. Hopefully someone with experience can chime in.</p>
<p>As Mom4 said - apply and see how it works out.</p>
<p>oh i forgot to include that our income is negative because we built a business and are paying off the debt. i think. anyways yeah i guess ill just apply. it doesnt really matter anyways whether i get it or not…besides that it would save us money for other stuff. thanx : ]</p>
<p>I think that by showing a negative income the question will be: What have you been living on the last year?</p>
<p>well…we have money. lol but it just means that our income is negative because we lost out in business (i think thats what my mom said). this might not be right but i dont feel like going up to my mom and saying why is our income negative?? lol yeah i could, but i wont. also we have money in the bank. this is just for 2008.</p>
<p>Hopefully you mean 2009? You need 2009 income for current FA applications.</p>
<p>oh yeah! shoot. i thought we would maybe have a chance at getting FA if we used 2008 but i forgot i was filling out the wrong app until someone told me on here. so yeah…i dont know what 2009’s AGI is yet.</p>
<p>If the business is owned 51% or more by your parents and has 100 or fewer fulltime employees then its value is not reportable on FAFSA as an asset. If your parents take the business losses on their personal tax returns, such as for an S Corporation, then it’s possible for your AGI to be negative. However, colleges might ask your parents to add back in (or subtract out) certain deductions.</p>
<p>okay thanx. yeah they do own it 100% and there are about 5 employees counting maids.</p>
<p>Well since you have money in the bank, you’ll have to ask your parents what their likely income is for 2009. The combination of 2009 income and savings might prevent much, if any, aid.</p>
<p>Remember that most “free federal aid” is for low income families, so your family may have an EFC that is too high for such “free aid.” If your family is against the idea of student loans and parent loans, then then they will just have to pay your costs.</p>
<p>You need to ask your parents how much they will spend each year on your education. That will make a difference in many ways. :)</p>
<p>its not that theyre against it…its just theyd rather pay it off if they have the money. and they do. i guess we’ll probly end up paying the full tuition-scholarships awarded. lol thanx guyz.</p>
<p>*i guess we’ll probly end up paying the full tuition-scholarships awarded. *</p>
<p>Where are you applying to? Do those schools give merit scholarships for your stats?</p>
<p>I have seen negative AGI due to business losses. Schools that use Profile or schools that have their own financial aid forms to supplement FAFSA may add certain things back in when awarding institutional aid. </p>
<p>What is your parents’ business? You say that they have maids. There is a fine line sometimes when determining if what generates the income/loss is a “business” or an “investment.” The maid thing has me wondering what the specific situation is …</p>
<p>^^^</p>
<p>I thought it might be a small hotel or bed & breakfast. But, that’s just a guess.</p>
<p>That’s what I was thinking, too. If the parents actively work there, it would be considered a business. If they own it & don’t actually work there, it might be considered an investment - not sure, as I have never encountered this situation in real life. I’d have to research it.</p>
<p>oh ill PM it to u guyz lol im the only kid here who has this certain type of business so ppl would know.</p>
<p>babygrl…could you please type your messages here in standard English? Some of us (like me) have trouble reading the abbreviations used on Twitter, Facebook and in IM’s. </p>
<p>Thanks.</p>
<p>*If the parents actively work there, it would be considered a business. If they own it & don’t actually work there, it might be considered an investment *</p>
<p>Kelsmom…</p>
<p>If a person owns several businesses, can they claim that they actively work at each one? Say a family owns 4 restaurants, can they say that they work at each one? At what point would some of those restaurants be considered investments?</p>
<p>Actually, my thinking was a bit confused. I was trying to figure out if this would be “business income” or not, based on the FAFSA definition of a reportable rental property. <a href=“http://ifap.ed.gov/fsahandbook/attachments/0910AVGCh2.pdf[/url]”>http://ifap.ed.gov/fsahandbook/attachments/0910AVGCh2.pdf</a> (pg 17 of the pdf). </p>
<p>I have never had a student with this situation. Rental property is a weird situation. I was thinking that maybe the student’s family had properties that were rented out & that was their business. The maid service mentioned was what made me think that this might not just be cut-and-dried. Restaurants are clearly a business … rental property is different, and the properties might need to be reported as investments. Because I didn’t know for sure what the business was, I didn’t want to say “for sure.”</p>