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Isuckatmath_help
New Member

How to find Income Tax for FAFSA 2020?

Hello all! Im using my parents 2020 joint filed 1040 form, but it doesn’t have a schedule 2? Fafsa is asking: “minus IRS form 1040-line 22 from schedule 2 line 2.”

I’m very confused. My brother says since we live in Texas and there’s no Income Tax, I should put 0?

6 Replies
Critter-3
Level 15

How to find Income Tax for FAFSA 2020?

If you don't have a Sch 2 then you don't have anything to subtract ... it is just that simple.  So X minus nothing still  = X 

xmasbaby0
Level 15

How to find Income Tax for FAFSA 2020?

There are three possible schedules that can be part of a Form 1040---but some people do not have any of them; some may have only one or two, some might need all three, depending on the information you entered when you filed the return.   It is possible that you do not have a Schedule 2.   Here is what one looks like----do you have one in the pdf of your return?

 

https://www.irs.gov/pub/irs-pdf/f1040s2.pdf

 

Schedule 2--Line 2 --- which is what you say FAFSA is asking about --- pertains to health insurance.   It has nothing at all to do with living in Texas.    Did your parents have Obamacare insurance---Marketplace insurance--for which they got a premium tax credit?

 

 

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
rjs
Level 15
Level 15

How to find Income Tax for FAFSA 2020?


@Isuckatmath_help wrote:

My brother says since we live in Texas and there’s no Income Tax, I should put 0?


No. The FAFSA is asking about the federal tax return, not a state tax return.

 

Hal_Al
Level 15

How to find Income Tax for FAFSA 2020?

Yes, you should use 0 for the  1040-line 22 amount from schedule 2 line 2. But not because you live in TX. It's because your parent's  Schedule 2, line 2, is effectively 0, because they did not have a Schedule 2. 

Critter-3
Level 15

How to find Income Tax for FAFSA 2020?

The FASFA application asks for a lot of things most returns DON'T have so don't get hung up on these lines ... if your parent's  return does not have what it is asking for then enter a zero if the app will not let you skip that line completely.  

rjs
Level 15
Level 15

How to find Income Tax for FAFSA 2020?

We need to clarify what we mean by "entering zero." Here is the question on the FAFSA that you asked about.


"85. Enter your parents’ income tax for 2020. Income tax amount is the total of IRS Form 1040—line 22 minus Schedule 2—line 2. If negative, enter a zero here."


It is not asking you to enter the amount on Schedule 2 line 2. It's asking you to enter the amount of income tax, which it defines as Form 1040 line 22 minus Schedule 2 line 2. So if there is no Schedule 2, then Schedule 2 line 2 is zero and you just enter the amount from Form 1040 line 22. But Schedule 2 line 2 being zero, or not having Schedule 2, does not mean you can enter zero as the answer for the question on the FAFSA. You have to enter the amount from Form 1040 line 22. You would only enter zero on the FAFSA if Form 1040 line 22 happens to be zero.


This has nothing to do with what state you are in. You are taking information from the federal tax return.

 

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