How does Yale calculate family income when determining financial aid eligibility?

Yale calculates family income for need-based aid by starting with the income reported by the student and parents on financial aid forms and tax documents, then reviewing the full picture rather than using just one salary number. They typically look at both taxed and untaxed income, which can include wages, salaries, bonuses, business or self-employment income, interest, dividends, rental income, retirement contributions, and some other cash benefits. Yale uses information from the CSS Profile, parent and student tax returns, W-2s, and sometimes additional documentation to build that figure.

Yale also looks at assets, family size, number of children in college, and unusual circumstances, so income is important but not the only factor.

If part of your family income comes from bonuses, overtime, commissions, or fluctuating self-employment income, Yale generally includes those amounts, especially if they appear on tax returns or W-2 forms. If income changed recently, such as because of a job loss or a one-time bonus that made one year look unusually high, Yale may adjust its review if you provide an explanation and documentation.

In practice, the number Yale uses is closer to an institutional calculation of available family resources than to adjusted gross income alone.