As a newcomer to this community, I'm so thankful to have found this discussion! I'm dealing with a very similar situation where we're planning to sell rental property and I've been worried sick about FAFSA implications for my son's college applications. Reading through all these responses has been incredibly helpful - especially learning about the prior-prior year rule! I had absolutely no idea that property sales happening now wouldn't affect financial aid until two years down the road. That changes everything for our timing! The detailed explanations about how retirement account contributions are treated differently from regular investments on the FAFSA have also been eye-opening. I'm taking notes on all the practical advice here, from the asset treatment breakdown to the importance of having adoption documentation ready if applicable. What really impresses me about this community is how everyone shares real experiences and actionable advice rather than just pointing to confusing government resources. The stories about the new FAFSA calculations being more generous than expected have given me hope that it's worth applying regardless of income level. Thank you all for creating such a supportive space for families trying to navigate these complex financial aid waters!

As a newcomer to this community, I'm so grateful to have discovered this incredibly informative discussion! I'm in a nearly identical situation - we're selling investment property and I've been extremely anxious about how it might impact my daughter's FAFSA eligibility. This thread has been absolutely enlightening, particularly learning about the prior-prior year rule. I had no clue that property sales happening this year wouldn't affect financial aid applications until 2027-2028! That completely changes my stress level about timing. The detailed explanations about asset treatment differences (retirement accounts vs. regular investments vs. cash) are exactly the kind of practical guidance that's impossible to find clearly explained elsewhere. I'm also impressed by how supportive everyone is here, sharing real experiences rather than just repeating confusing policy language. The positive feedback about the new FAFSA calculations potentially being more generous than expected has convinced me to apply regardless of our income bracket. It's so reassuring to find a community where people genuinely help each other navigate these complex financial aid challenges. Thank you all for sharing your knowledge and experiences!

Hey Freya! I totally get the panic - I was in almost the exact same boat two years ago when my dad's business taxes got delayed. Here's what I learned that might help: You can absolutely submit using "Will File" status with estimates, but here's a pro tip: ask your step-dad to get a rough profit/loss statement from his business records even if the final Schedule C isn't ready. This will give you much more accurate estimates than just guessing. Also, when you update later with actual numbers, do it ASAP after his return is filed. I waited like 3 weeks and my school's financial aid office had already started processing awards, which created a mess when my SAI changed. One more thing - if your step-dad's business shows any losses or unusual deductions, be prepared for your school to ask lots of follow-up questions during verification. They might want bank statements or other proof of how your family actually covers living expenses. It's annoying but totally normal. You've got this! The system really is designed to handle these situations, and missing a few weeks won't ruin your chances at aid. Just stay organized and keep good records of everything.

One thing I haven't seen mentioned yet - if your step-dad's business is a sole proprietorship (which it sounds like it might be with the Schedule C), make sure you understand how business assets might affect your FAFSA. The simplified formula doesn't count business assets if the business has fewer than 100 employees, but if your family has significant business equipment, inventory, or other assets, it could impact your aid calculation. Also, since you mentioned this is stressing you out, remember that you can always call your colleges directly to explain the situation. Most financial aid offices are really understanding about tax delays, especially for families with small businesses. They might be able to give you school-specific guidance or even extend internal deadlines if needed. You're being really proactive about this, which is exactly the right approach. The fact that you're asking these questions now rather than waiting until the last minute shows you'll be fine!

Another tip for anyone filling out the FAFSA with self-employment income: keep good documentation of all your business expenses and depreciation. If you get selected for verification (which happens more often with self-employed applicants), you'll need to provide additional documentation beyond just your tax returns.

As someone who's been self-employed for years and helped my kids through multiple FAFSA applications, I can confirm what others have said - you absolutely should enter the information in both places as requested. The system is designed to handle this correctly. One thing I'd add is to make sure your "Income Earned from Work" figure matches what's on line 1 of your 1040 (your adjusted gross income from all sources), and then report your Schedule C net profit separately in the business income section. This way everything stays consistent across your application. The FAFSA uses the Schedule C info to assess things like business assets and expenses that might affect your ability to pay, which is different from just knowing your total income. It's confusing but necessary for their calculations.

As a newcomer to this community, I'm finding this thread incredibly helpful! I'm in a similar situation - single mom with full custody preparing for my daughter's first FAFSA application. Reading through everyone's experiences has made me realize I need to get much more organized with my documentation. I had no idea that verification was so common or that I'd need official state records for child support. One question I haven't seen addressed: if my ex has been inconsistent with payments and sometimes pays late (like January payment coming in February), do I report based on when the payment was due or when I actually received it? I want to make sure I'm reporting the correct amounts for the 2023 tax year. Thank you all for sharing your experiences - this process felt so overwhelming before reading this discussion!

As a newcomer to this community, I just wanted to thank everyone for this incredibly detailed discussion! I'm also a single parent preparing for my first FAFSA experience, and reading through all these responses has been both educational and reassuring. The practical tips about gathering documentation early, requesting official payment records from the state, and keeping detailed spreadsheets are exactly what I needed to hear. It's clear that while the process can be complex, it's definitely manageable with proper preparation. One thing that really stands out is how supportive this community is - seeing everyone share their real experiences, both the challenges and solutions, makes this whole process feel less intimidating. I'm definitely going to start organizing my documents now and will probably be back with more questions as I work through the application. Thanks again to everyone who shared their knowledge!

As someone who just went through this process last year, I want to echo what others have said about checking those student portals! My daughter's aid packages were literally just sitting there for weeks. Also, with your SAI of 10,000, you're actually in a decent position - you might not get Pell Grants but many schools will still offer substantial institutional aid, especially if your daughter has good stats. One thing I learned is that different schools calculate "need" differently even with the same FAFSA info. Our state school gave us mostly loans, but a private college surprised us with a $12k merit scholarship that made it almost the same cost. Don't give up hope yet - and definitely call those financial aid offices if the portals don't have anything. This year has been especially chaotic for everyone in financial aid.

I'm going through the exact same thing right now! My son has an SAI of 8,500 and we've only heard back from 1 out of 3 schools so far. The one we did hear from gave him a decent package - $3,500 in subsidized loans, $2,000 unsubsidized, and surprisingly a small $1,200 institutional grant we weren't expecting. What I've learned is that this year's FAFSA rollout really messed up everyone's timelines. I called one of the schools last week and they said they're running about 6-8 weeks behind their normal schedule. The financial aid officer told me that many schools are working with incomplete data because of all the FAFSA technical issues from earlier this year. My advice: definitely call AND check portals. One school had our aid info in the portal but never sent an email notification (their system was apparently broken). Also ask specifically about any verification requirements - apparently some schools are being extra cautious this year and requiring additional documentation even when it's not technically needed. Hang in there - you're definitely not alone in this frustrating waiting game!