Reporting Income - FAFSA
 

I am applying for financial aide and I am not sure what number to put for my income. They want how much I earned from working (wages, salaries, tips, etc.) in 2010. Does anyone know if this before expenses and taxes or income after I take out my expenditures?

FAFSA has you take all your figures off of your 1040. I do my taxes and than follow up right away with the FAFSA. The FAFSA will even tell you what line of your 1040 you will get your number from. Is this your first year doing a FAFSA?

Yes, this is my first year taking out loans. I didn't see where it told me which line, maybe I haven't been looking in the right place.

Use the number that you enter on your 1040 - income from business.
That would be **after** all of your expenses and deductions.

Net Income
 

Yes, for purposes of eligibility of various programs you should always be reporting your net income (profit) from your business. This is the bottom line on your Schedule C that gets transferred to Form 1040, line 12.




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