How would I answer this question if my parents are business owners: “How much did Parent earn from work in 2022?” All it gives me is “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.” My parents never filed a W-2, 1099, or 1098.
They also asked about business income on schedule 1 line 3 and I already entered that. So now I’m not sure what numbers to put. Do I look at their invidivual schedule c’s and enter gross income?? Please help.
Your parents don’t “file” these. They are sent by the folks employing them. Since we don’t know the structure of your parent business, it’s hard to say what’s what for you. Do you have their 2022 tax return?
What did you put on your FAFSA form for parent income!
If they didn’t have any W2 income and there is no number on line 1a of the 1040 then the answer is zero.
Do not enter gross income, AGI, or any schedule C income as income from work.
However, are you sure you understand the structure of your parents’ business? Many business owners do pay themselves W2 wages.
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Yes, I do have their tax returns. For FASFA I believe I entered income earned from work from “line 1z + Schedule 1: lines 3 + 6” of the 1040 since that’s what the FASFA handbook told me to do.
Okay. Yes, I think they do pay themselves W2 wages as well; would that affect my answer to the question? Should I still put 0?
I just checked and 1a of the 1040 is blank
Just enter numbers from the lines the instructions tell you to use. If something is 0, it’s 0. If the only income is on Schedule 1, that’s not unusual.
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Sounds like income from work is zero then