Information on FAFSA Income Questions

The Free Application for Federal Student Aid (FAFSA) is used by the Department of Education to help determine a student's financial need for college. Both state and national grants and loans are dependent upon a student's need based on the FAFSA, and colleges also use it to determine need.

Your Tax Returns

Your W-2 and tax returns from the previous year are required for the FAFSA. This only applies to adults who had income in the previous year.

Parents' Tax Returns 2

Your parents' or primary caregivers' tax returns and W-2s from the previous year are required for the FAFSA. The numbers from them are used in many of the questions, and a copy of the W-2 forms must be faxed or mailed to FAFSA.

Savings

If you or your parents have a checking or savings account, that must be disclosed along with the amount of money in the account.

Investments

You and your parents must also disclose information on your investments. According to the FAFSA Website, examples of investments are trust funds, money market funds, mutual funds, stocks, stock options, bonds and commodities.

Business and Farm

If you or your parents own a business or farm, that must be demonstrated on the FAFSA. It requires a statement of the market value of land, buildings, machinery, equipment and inventory. You must disclose the amount of debt created by the business or farm as well.

References

• The FAFSA Worksheet