<p>Parents taxes indicate “other income” on line 21. Is this considered part of AGI only or does it also need to be put in the worksheet B section of the FAFSA?</p>
<p>If the sale of stock resulted in a capital gain, the net gain would be included in your adjusted gross income. It is not “other income”. If the proceeds of the stock are now in a checking account or money market fund, they would be included in assets.</p>
<p>Actually I think if the proceeds are in your checking account they are double counted. They are counted as income (capital or current) and again as cash assets. That’s the incredible sucky part!</p>
<p>Well, the total value of a stock is an asset whether it’s sold or held, so the stock itself is not really being double counted. When the gain is realized, the part of the proceeds that is a capital gain (sale price minus original purchase price) is income and so is double-counted. </p>
<p>However, it’s possible that a capital gain can be offset by the sale of another stock that has a loss. If there’s a net capital loss (unfortunately, not that difficult to find these days), then up to $3000 of it can be subtracted from the AGI. Any capital loss greater than $3000 gets carried over to the next tax year.</p>