FAFSA double-counting income? Self-employment on Schedule C vs. Income Earned from Work

You're right to be concerned about double-counting, but the FAFSA needs both pieces of information for different calculations. The 'Income Earned from Work' is used to determine your overall household earnings, while the Schedule C information helps them understand your business income specifically. It might seem redundant, but enter both as requested - the FAFSA formula accounts for this and won't double-count your income in the final SAI calculation.

omg i had this EXACT same question last week!! so confusing right?? i just put the same number in both places cuz thats what the instructions said but it def felt wrong

The FAFSA form is collecting different data points for different purposes in their formula. Your Schedule C income specifically helps them assess your business finances separate from regular employment. When you complete both sections accurately, the calculation engine correctly processes this without double-counting. For anyone confused by this: always report exactly what each section asks for, even if it seems redundant. The formula is designed to handle these scenarios correctly.

I've been through this exact situation with my own FAFSA application. It's infuriating how unclear their instructions are! When I called to ask about this same issue, I was on hold for HOURS and eventually got disconnected twice before giving up. I ended up just entering the information twice like they asked and hoping for the best. My SAI calculation seemed reasonable in the end, so I guess their system does account for it somehow.

THIS IS WHY PEOPLE HATE FAFSA!!! They make everything 10x more complicated than it needs to be! My daughter's application got flagged for verification because of confusion like this. The whole system needs to be scrapped and rebuilt from scratch if you ask me.

Just to clarify for everyone: The FAFSA is asking about Schedule C income separately because they need to account for business expenses, depreciation, and other factors that affect self-employment income differently than W-2 income. The separate questions help them calculate your Expected Family Contribution (now called the Student Aid Index or SAI) more accurately. Yes, report your income in both places as requested. No, it won't be double-counted in your final SAI calculation.

quick question - does this apply to Schedule E income too? i have a rental property and now im worried i did mine wrong

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.