Hi - In the income section of the CSS, on the section on “Parent Earnings,” it says “How much did [Parent] earn from work in 2023?”
But then it says: “Include wages, salaries, tips, and commissions. Include income reported on W-2 forms or other earning statements and any earnings from work that are not included on earnings statements, such as those found on Schedule C, if applicable.”
I find this language confusing. Am I supposed to include Schedule C income here, or not?
And if I am supposed to include Schedule C income, do I just add the net profit for the business?
Hello I am confused about the same thing. Should I just report $0 as my parents earnings? Because I’m not sure if I put the schedule C line 31 amount (which is the business profit- which is already reported somewhere else), they’ll end up doubling the amount. My dad doesn’t take home all the money from the business so I don’t know whether or not to say that as parent earnings.
The amount of profit on Schedule C gets reported on Schedule 1, and that number is then reported on the 1040 form. So yes, that number is reported on the 1040. But so is income from W2’s, which is probably also asked about. I’m guessing that you’re referring to questions about “income from work.” These questions aim to determine how much of the total income reported by parents is from working (rather than from things like lottery winnings or dividend income). Do they aren’t counting things twice - they’re just trying to find out the amount of total income that is from work.