<p>Hi. I’m dual US citizen living outside the US. My parents will file foreign 2013 tax return. Right now I want to put estimates in the financial info in FAFSA. Is this Adjusted gross income basically mother’s + father’s incomes added together? </p>
<p>My father owns a business. How can I report loss from that business? Should I put $0 or e.g $-2000? And again, should I deduct that loss from the adjusted gross income?</p>
<p>From the Federal Student Aid Handbook: “Foreign income … information from non-IRS tax returns would be reported on the FAFSA, with the value of the foreign income and taxes reported in U.S. dollars, using the exchange rate at the time of application. For verification these returns are considered equivalent to IRS Form 1040. If the student (or his parents) earned foreign income but did not pay any taxes on it, it should be reported as untaxed income.” And: If the student or parents filed a tax return using something other than a common IRS form, such as a foreign or Puerto Rican tax form, the student should report on the FAFSA the amounts (converted to U.S. dollars) from the lines of the form that correspond most closely to those on the common IRS forms."</p>
<p>You have to do your best to try to figure it out. You can look up U.S. tax returns at [url=<a href=“http://www.irs.gov%5DInternal”>http://www.irs.gov]Internal</a> Revenue Service<a href=“Form%201040”>/url</a>.</p>
<p>If the business income is a loss, it is reported as 0 (no negatives).</p>