Foreign Income Tax Return and FAFSA

 

READ PREVIOUS                                                                                                             READ NEXT

After you have successfully left the FAFSA website, a new page will open on the IRS website, which will ask you to enter certain details to prove your identity. The page will look similar to the image shown below:

IRS DATA RETRIVE TOOL

After you have successfully proven your identity, the IRS web site will present to you the information that will be transferred into FAFSA. One can choose to edit the information at his/her own will, before transferring it to the FAFSA.

Note: if you make any changes to the information on the IRS web page, before transferring it to the FAFSA, then it will not be marked as “Transferred from the IRS”, and it may be subjected to verification.

The image below shows how the IRS Data Retrieval Tool works, and the way it is linked directly to the FAFSA.

Related:Why does the FAFSA ask for the information on the Federal means-tested benefits?

IRS Data Retrival Tool

What if, you have any kind of Foreign Source of Income, and file Foreign Income Tax Return?

FAFSA INCOME SOURCE

For the parents, who file foreign income tax returns instead of U.S income tax return, are required to use the corresponding figures from their foreign income tax return. One should use the closest equivalent to the adjusted gross income on the foreign income tax return. Remember to convert all the figures to dollars, by implementing updated exchange rates on the date when the FAFSA is filed.

**In case, your FAFSA is selected for verification, then you may also have to present a copy of your foreign income tax return to the college financial aid administrator.

**Those who file both the U.S. income tax return and the foreign income tax return should use the information from the U.S income tax return to file the FAFSA. One can also avail the benefit of excluding some part of their foreign income on the U.S income tax return, by just filing the IRS form 2555 or 2555EZ, though they should not make a mistake by reporting the foreign income exclusion as untaxed income on the FAFSA

Related:Does an independent student need to report his/her spouse’s assets?

READ PREVIOUS                                                                                                             READ NEXT

Other lessons on FAFSA

FAFSA Related Post

Creating The FAFSA Account
Determining the Dependancy
Filing The FAFSA

Useful Resources

How to Apply for Financial Aid
FAFSA Frequently Asked Questions
Financial Aid for Student