How do you apply for financial aid when you have a small business?
I am applying to a lot of colleges this year and although my parents have 2 well-paying jobs, I’m paying for a lot of my college myself. Our income says that I’m not eligible for financial aid. But my parents do have a small business that makes less money. If I put in the income from that business, I’d definitely get financial aid. So would I be allowed to do that? Or would that be fraud?
Thank you for your time.
- 1 month ago
Your parents would complete the FAFSA using the adjusted gross income reported on their 2018 tax forms regardless of source. Unless either business has 100 or more employees, nothing about those businesses will appear on the FAFSA - if either one has more than 100 employees, only its net worth appears in the "business/farms" area - and only the percentage representing their ownership would be entered.
- MSLv 71 month ago
Yes, that would be fraud. You have to indicate all earnings and income, not just earnings and income from one less profitable business. Tax information has to be provided.
- A.J.Lv 71 month ago
Fraud. They report all income, including jobs and business. If they are not reporting the business income to the IRS, that is tax evasion, a felony.