<p>Any tips on talking with FA regarding self employment status? I work from home part time and due to this had to file a 1040 making us technically ineligible according to FAFSA guidelines of filing a 1040EZ or 1040A. </p>
<p>Due to having to answer the question no on were you eligible to file 1040EZ of A made us ineligible for the simplified calculation. Income would definitely allow us file 1040A or EZ but b/c I received a 1099 we are in a pickle. :-). DS’s fin aid was slashed due to this one question. </p>
<p>Anyone experienced something similar and have tips on what to tell FA to help them understand this dilemma, I would appreciate your feedback.</p>
<p>I think it is unfair to be placed in a box so to speak just because you work from home. Its almost like you’re being penalized for working from home… <sigh></sigh></p>
<p>we have the same thing- if you itemize at all, you can’t file short form</p>
<p>and I admit- it does affect aid, even with only slight differences of income.
But dems the breaks.
You can always ask for special consideration and see what they say
spell out expenses that drain income with documentation- they might listen.
Or not.</p>
<p>IF you are a 1099 employee then you are a consultant or self-employed. When you were allowed/told to work from home, did they tell you they were switching you from W2 to 1099 or have you always been that way?</p>
<p>Did any one warn you to pay your self-employment taxes quarterly? Have you met with an accountant to make sure you are taking all your legal deductions from your income? I would think that you would be able to have some reduction of your AGI from your office expenses- gas to the office if you go in once a month for meetings or training; phone expense, computer expense, office equipment & supplies, health insurance premiums?</p>
<p>What are you paying that a traditional employer would usually pay? Talk with an accountant and verify you are doing things the best way you can.</p>
<p>OP, I’m not able to (and won’t) assess your situation but working from home has zero to do with being “self-employed”. You can be self-employed and work at the office or an employee and work at home. It’s more a matter of who controls the manner and means of production. See this link for more info. [Independent</a> Contractor (Self-Employed) or Employee?](<a href=“http://www.irs.gov/businesses/small/article/0,,id=99921,00.html]Independent”>http://www.irs.gov/businesses/small/article/0,,id=99921,00.html)</p>
<p>This a common misconception. I know that doesn’t help you much here but who knows? Maybe it helps you down the road. ;)</p>