KarenNC Posted April 16, 2016 Posted April 16, 2016 If a college's NPC asks for "income after taxes," are they looking for a specific line item from the 1040 (like the "taxable income" line) or do I just multiply take-home pay by number of paychecks plus any bonuses (no investments other than retirement)? We do have things like HSA and retirement taken out pre-tax. Most of the ones I've seen have asked for AGI or the like, but Appalachian State has this wording. It may be an obvious answer, but it has me a bit confused, so thanks for bearing with me as I figure out a new facet of this educational journey. :) Quote
FaithManor Posted April 16, 2016 Posted April 16, 2016 IF you work off last year's taxes and use your final taxable income or in the case of a calculator that wants to know how much you paid in federal taxes and use that amount you should be good to go. If you know there will be a pay raise or bonuses in the future so your adjusted income will be higher, you can do some estimating so you get a fairly good guess on the NPC. We used our numbers from our 1040 from 2014 for our 2015 college search for boy #2 and to be safe dh added 10%. Of course he didn't get a 10% raise, though he did receive one, just not that high, but it served us pretty well in having an idea what would be affordable and what would not. Quote
JanetC Posted April 17, 2016 Posted April 17, 2016 Look for a little i icon, some NPCs will specify exactly which lines on your tax return to add up. Quote
KarenNC Posted April 17, 2016 Author Posted April 17, 2016 Look for a little i icon, some NPCs will specify exactly which lines on your tax return to add up. Unfortunately, this one doesn't. Quote
MerryAtHope Posted April 17, 2016 Posted April 17, 2016 I've come across that too, and never know if they want the "AGI" or another number. I tend to "assume" AGI, but I'm not sure if that's right. I also am never sure about the question of how much taxes you pay--because I'm self-employed, I have a chunk to pay but it's not "income tax." Quote
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