How do I handle FAFSA questions about parents' income?

As I start preparing my FAFSA application, I'm a bit stuck on how to report my parents' income accurately. My parents have different types of income, including some investments and a small business. I'm worried about making mistakes on this part as it seems super important. Does anyone have advice or resources to guide me through this part of the FAFSA? How accurate and detailed do I need to be in documenting their income?

Filling out the FAFSA correctly is indeed crucial as it determines the financial aid you might be eligible to receive. It's essential to provide accurate and detailed information regarding your parents' income.

For the FAFSA, income includes money earned by your parents from work and profits from businesses or real estate, which are reported on tax forms. Ensure you include income from any small businesses your parents may own, as well as profit from the sale of stocks or other investments.

Remember to consider untaxed income, as the FAFSA requires you to report this too. This might include child support received, interest income, or veterans non-education benefits. You will need to report these in the respective sections.

If you are confused about how to report a specific form of income, the FAFSA's help section provides a lot of useful FAQs, and the form itself gives guidance on how to report each piece of information. You might also want to use tax documentation as a reference. The FAFSA typically aligns with how these forms report income, so they can provide a helpful guide for what you need to include.

It's essential to be as accurate as possible when you're completing the FAFSA, because knowingly providing false information could lead to serious consequences, including fines or jail time. That said, minor errors will not have those dire consequences and can usually be corrected later, so while you should strive for accuracy, don't let the fear of making a mistake paralyze you.

Lastly, consider seeking expert help—for example, a tax consultant or financial aid advisor at your high school—if you need further assistance or are unsure about anything. Also, remember to maintain copies of whatever documents you use to fill out the FAFSA, as you may need them for later verification. Good luck!