I’m confused. The form asks for 2016, 2017, 2018. In any other context It would be referring to those tax years which would mean:
2016 - easy (provided you filed your taxes)
2017 - a possibly reasonable full year estimate based on 3Q P&L. Or partial year actuals through whatever period you have calculated. The column doesn’t say “estimated” like 2018
2018 - a wild guess
It could be referring to tax forms filed those years which is non-standard but could be true since only 2018 is labeled “Estimated”.
Which is it?
NEVERMIND The form says to estimate but somehow i missed it.
To that same question, how does FAFSA (and the schools themselves) really treat fluctuating business income? As many small business owners experience, my income varies year to year. We did well in 2015 and received no aide FAFSA or through the CSS Profile. We’ve experienced a downturn. If you simply treat my current total income as salary using most schools online calculator, we would now qualify for some aid. If so great. I imagine 2018 will show an increase and we will be out of the aid equation again for second child’s four years.
Any insights?
Lower income in 2016 will have an impact on need-based aid for the 2018-2019 academic year. Lower income in 2017 will have an impact on need-based aid for the 2019-2020 academic year. Rinse and repeat.
Obviously there’s a two year delay in reporting vs. actual cash flow. They award aid based on very dated information (primarily for business owners as I imagine most salaried individuals would be far more stable except in job loss situations). So what happens when FAFSA says “no aid” but your real time situation is less 100k - 150k actual income?
Ask for a “professional judgment” determination from the financial aid office. But remember that certain assets also play a part, and that number is based on the situation as of the day that the form is completed.