There are deductions allowed by the IRS for tax purposes for,the self employed that are NOT allowed for financial aid purposes. These are then added back in as income for financial aid calculation purposes.
This cries by college…but includes things like travel, clothing, food/dining, anything related to home offices including utilities, cars, phones, computers, etc.
Because…these are things it is assumed you would have anyway…like that room in your house is there anyway, you would have a cell phone anyway. You would have a car anyway.