This is such a timely question! I'm in a similar boat with my son starting college in fall 2025. From what I've gathered through this whole process, the FAFSA primarily uses your AGI from line 11 of your 2023 tax return, but it's definitely not the only thing they look at. Since you mentioned having rental properties and self-employment income, those will flow through to your 1040 via Schedules C and E respectively - so they're looking at the net income after your legitimate business deductions, not the gross amounts. The tricky part with rental properties is that while depreciation reduces your taxable income, the actual property values still count as assets if you own them outright. One thing that's helped me understand this better is using the IRS Data Retrieval Tool when it becomes available - it automatically pulls the exact fields that FAFSA uses from your tax return, so you can see exactly what they're seeing. Good luck with the whole process!

Just wanted to add something that might be helpful for your situation with self-employment and rental income - make sure you're keeping really detailed records of all your business expenses and rental property deductions. The FAFSA uses what flows to your 1040, so legitimate business deductions that reduce your AGI will help your aid eligibility. Things like home office expenses, business travel, rental property repairs and maintenance, property management fees, etc. can all reduce the income that FAFSA sees. Also, since you mentioned your daughter is starting in fall 2025, remember that you'll be using your 2023 tax return for that FAFSA (the one you filed earlier this year), not your 2024 return. So there's no changing what they'll see for her first year, but you can start planning now for her sophomore year by being strategic about timing income and expenses in 2024. The complexity with self-employment and rentals is definitely stressful, but the silver lining is that you have more control over the timing of income and expenses than W-2 employees do.

I just wanted to chime in as another parent going through this process! My daughter is also a freshman this year and I had the exact same worry about winter semester. Reading through all these responses has been so reassuring - it's clear that the FAFSA covers the full academic year, which is a huge relief! I especially appreciate the tips about checking the student portal regularly and being aware of the academic progress requirements. I had no idea that grades could impact financial aid between semesters. One question I have for the group - has anyone dealt with a situation where their student's aid amount changed between fall and spring? I'm wondering if that's something we should be prepared for or if it typically stays consistent throughout the year (assuming grades and enrollment stay the same).

As a newcomer to this whole college financial aid process, I'm finding this discussion incredibly valuable! My daughter just started her freshman year and I've been so confused about the FAFSA timeline. It's such a relief to learn that one FAFSA covers the entire academic year - I was worried I had missed some important deadline for spring semester. The practical advice everyone has shared about checking student portals regularly, being aware of academic progress requirements, and the different ways schools might distribute aid between semesters is exactly what I needed to hear. I had no idea that grades could affect financial aid eligibility or that some schools frontload aid in the fall semester. This community is amazing for parents like me who are navigating this for the first time. I'm definitely going to check my daughter's student portal this weekend and have a conversation with her about staying on top of her grades. Thank you all for sharing your experiences and making this process feel less overwhelming!

I'm going through something very similar right now! My husband is also active duty (E4) and we got denied for Pell Grant despite our low income. After reading through all these responses, I'm realizing we probably made the same BAH reporting mistake. One thing I wanted to add - when you do get through to FAFSA (whether through Claimyr or waiting on hold), make sure to ask them to email you a summary of what they find on your account. I learned this the hard way after multiple calls where different agents told me different things and I had no record of what was actually discussed. Also, if your school continues to give you the runaround, try reaching out to your state's higher education department. Many states have student advocacy offices that can help when you're stuck between FAFSA and your school. It's another option if the professional judgment review doesn't work out. Good luck - you shouldn't have to take on unnecessary debt when you clearly qualify for the grant!

I'm a newcomer here but dealing with almost the exact same situation! My husband is Navy E-3 and we were also denied Pell Grant despite our income being well under the threshold. Reading through everyone's responses has been incredibly eye-opening - I had no idea about the BAH reporting issues or the Special Circumstances forms. What really resonates with me is the frustrating back-and-forth between FAFSA and the school. I've been told three different things by three different people at my financial aid office, and each time they just send me back to call FAFSA. It's like nobody wants to take ownership of actually solving the problem. I'm definitely going to try the Claimyr service that @ava mentioned and ask specifically about those verification codes. I'm also going to request that Special Circumstances form from my school tomorrow. Thank you all for sharing your experiences - it's given me hope that this can actually be resolved instead of just accepting that I have to take out loans I can't afford. For other military spouses reading this thread, it seems like we need to be much more aggressive about advocating for ourselves and not accepting the runaround. These aren't just random system glitches - there are specific solutions if we know what to ask for!

As someone who just went through this same situation last semester, I can definitely confirm what everyone else is saying - transportation costs are absolutely a legitimate use of your FAFSA funds! I was also nervous about it at first, but your bus passes and occasional Uber rides for late classes are exactly the kind of transportation expenses that are built into your cost of attendance. One thing that really helped me budget was calculating my estimated monthly transportation costs upfront. Since you mentioned your bus pass is $125/month, maybe budget an extra $50-75 for those occasional rideshare trips when the bus schedule doesn't work. That way you have a clear transportation budget from your refund and won't stress about each individual expense. Also, definitely check with your school's student services about transit discounts - I saved almost 30% on my monthly pass once I found out about the student rate. Some schools even have emergency transportation funds for students who need help with unexpected travel costs related to classes or campus activities. You're being really responsible by asking these questions upfront rather than figuring it out as you go. ¡Buena suerte with your first year - you've got this!

Hey Natasha! I just wanted to add my voice to confirm what everyone else has been saying - yes, transportation costs are definitely covered under FAFSA! I'm also a commuter student (about 30 minutes from campus) and I use my financial aid refund for my monthly transit pass without any issues. One thing I discovered that might help you - many schools have a "transportation allowance" already built into your Cost of Attendance calculation. You can usually find this breakdown on your financial aid award letter or by asking your aid office. At my school, they budget about $1,800 per year for transportation costs, which works out to roughly $200 per month during the academic year. Also, since you mentioned late classes - check if your school offers any evening shuttle services or safe ride programs! Some colleges provide free transportation for students with night classes, which could help you save your FAFSA funds for regular commuting. Don't stress about using your aid money for legitimate school expenses like getting to and from campus. That's exactly what it's there for! ¡Que tengas mucho éxito en tu primer año!

UPDATE: I was finally able to get through to FSU's financial aid office! Turns out there WAS a name mismatch issue - my son's middle name was missing on the FAFSA but is included in his FSU application. They manually matched his records and said it should appear in the portal within 48 hours. Such a relief! For anyone else facing this issue, definitely call the school directly. Thank you all for your helpful suggestions!

This is such a helpful thread! I'm a parent going through the FAFSA process for the first time and had no idea about all these potential matching issues. Quick question - when you say "middle name was missing on the FAFSA," does that mean it should match exactly how the student's name appears on their Social Security card? My daughter doesn't use her middle name day-to-day but it's on all her official documents. Want to make sure we don't run into the same problem!