I certainly don't mean to be snarky here, but I pay more than you make in taxes. I'm lucky to keep 47-48 cents of every dollar I make because the bastards from the Federal, State, County, Township and local municipality and school districts all have their hands in my pocket.
The only thing I have "going for me" at this point is my home is long paid for, I have $0 car payments (my vehicle is 12 years old, wife's is 6 yers old) and all I "owe" are my monthly expenses.
One would think with the taxes I pay and how much the Government takes out of my pocket my oldest son would get SOMETHING for financial aid to go to college -- NOPE. Every college he's applied to wants to charge us FULL FREIGHT for tuition and boarding. Funny how they all look at "how much you make" and never at "how much you KEEP" in making their financial aid decisions.
Not surprised at all if you live in one of those high tax areas. Of course, my take home is also reduced by what I am shocking away in my 401k, something most of us HAVE to do because we don’t have one of those defined AFSME or SEIU pensions subsidized by the taxpayers.
Bottom line is that I am about an average of a peasant as you can get.
My situation is similar to yours. You didn't mention, but the forms also ask what you have saved up. Now we are reasonable folks that try to have at least six months' income saved in quick-access cash. That means in the end the last three (used) cars have been paid for in cash. And no debt beyond our house.
We have one not-quite-big screen TV. But not all the latest toys. We live rather modestly. Cheaper cell phones. No cable TV. Frugal.
What do we get out of that? Nope, no financial aid. But our son's friends? The ones with new cars and multiple big screen TVs, but nothing in their savings accounts? Yup, tons of grants.
This country is so backwards, rewarding those that are fools and penalizing those that are self sufficient. Sometimes I think I am the fool.