The small business exclusion is going away effective 2024-25. Starting with that year, the net worth of small businesses, must be reported.
Also starting in 2024-25, the FAFSA simplification requires all students and parents to import their tax information directly from the IRS onto the FAFSA. Everything will be automatically populated. Currently, schedule K-1 box 14(code A) is the only information carried directly from that schedule that is reported on FAFSA. Starting in 2024-25, I’m not sure even that particular will be carried onto the FAFSA. I am not familiar with how schedule K-1 works, but if any numbers are carried from that schedule onto the 1040, that information will flow through from the 1040 onto the FAFSA.