How to Estimate the Adjusted Gross Income for FAFSA
To get financial aid for college, you must fill out the Free Application for Federal Student Aid or FAFSA. The federal government and most state governments, universities and private scholarship organizations require that your completed FAFSA be on file before they will consider you for financial aid. One of the details you must give on the FAFSA is your adjusted gross income. To determine your adjusted gross income, you will need to use IRS Form 1040, the U.S. Individual Income Tax Return.
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Things You'll Need
- IRS Form 1040, 1040A or 1040EZ
- IRS Forms W-2 or 1099-MISC, as applicable
- Other income statements, as applicable
- IRS Form 8917, if applicable
- Other tax documents, as applicable
Instructions
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Check your most recent tax return first. The FAFSA uses tax information from Form 1040. If your taxes are done, you can look up your adjusted gross income on Line 37 of Form 1040. If you used Form 1040A or 1040EZ instead of the primary Form 1040, you will find your adjusted gross income on Line 21 or Line 4 respectively.
If you have not completed your most recent year's taxes yet, you will have to calculate your adjusted gross income from scratch.
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Obtain an IRS Form 1040. You can find forms available for download on the IRS website, IRS.gov. If your finances are simple, you might be able to file one of the shorter alternative forms, 1040A or 1040EZ. The IRS website explains which form would be best for you.
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Retrieve any income statements that your employers sent you. Usually, this will be Form W-2, the Wage and Tax Statement. If you are an independent contractor or are self-employed, it will be a Form 1099-MISC, the miscellaneous-income form. This covers the income types for most people applying for financial aid; but if you have other sources of income, you must report them, too.
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Determine the values for Lines 7 through 21 on Form 1040. Sum these values on Line 22 to determine your total income. Leave lines empty, or put a dollar value of $0, on any lines that don't apply to you.
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Determine the values for Lines 23 through 35 on Form 1040. Sum these values on Line 36 to determine the downward adjustments in your gross income. Once again, leave lines blank if they do not apply to you. Most of them will not apply to most people, but pay attention to Lines 33 and 34, concerning student loan interest, and tuition and fees. If you paid tuition and fees in the most recent tax year, complete IRS Form 8917 to determine your deduction. This form is available for download from IRS.gov.
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Subtract Line 36 from Line 22 on Form 1040, to determine your adjusted gross income. Enter that value on your FAFSA, and on Line 37 of your 1040 for when you get around to completing your tax returns.
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Tips & Warnings
You must submit a FAFSA every year you wish to receive financial aid in the following year, and you must always use the most recent tax year's adjusted gross income.
If you are a dependent and do not file your own tax returns, you will need to use the adjusted gross income of the person who claims you as a dependent. Usually, that will be one or both of your parents.
References
Resources
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