Early Distribution from IRA
So I am filling out the CSS Profile and am now sick to my stomach. We are self-employed and our business has been almost dead the last several years from the recession. No assets in business and only an income of less than $5,000 this last year. We are living off early distributions from our IRA account. Savings (except IRA) is gone. Home equity line is already maxed out and no way to get to rest of equity because bank would never give us a loan due to low income. Son has been in free lunch program for 3 years now, but our estimated agi is now $59,000 due to $56,000 in distributions. I thought we would have automatic 0 efc. I guess I was sadly mistaken.
Will Profile schools treat this like we actually MADE $59,000? We are an LLC and our K1 shows $4,200 as income from business. We did not even take any business deductions! And will they expect us to use remaining equity in home, even though the only way to do so would be to sell it and be out on the street?