<p>I am self-employed, which I have learned really hurts when it comes to fin aid because the school adds back items in their income calculation. The fin aid person I talked to said they think my income is > $100,000, when my AGI was $22K. I don’t lie on my tax returns, but I do expense a car, gas, phone (I don’t think I’m alone in this). I don’t understand how these expenses can look like $80k of income to Emory</p>
<p>The school looks at it this way (not just Emory does this): You’re deducting expenses that other people aren’t. If you’re deducting all of your phone, car, etc, expenses, then you’re deducting some expenses that are being paid for with “personal income” - not just business income. </p>
<p>If you (alone) have two cell phones, one for business and one for personal use, then the business one is a legit full expense. But, if you only have one cell phone and you’re using it for both personal and business, then it gets murky…same with car, etc. </p>
<p>I have a cell phone that I only use for business, so it’s a full business expense. But, if I only had one cell phone and I was deducting my $200 a month bill, then I’m actually deducting a portion that is truly a personal expense. </p>
<p>Some of your husband’s business losses may also have been added back in because some are “thin air” in the eyes of colleges.</p>
<p>The point is that you’re not REALLY living on $22k per year. It actually would be offensive to taxpayers for you to get a Pell Grant.</p>