Parent’s Tax and Financial Information for FAFSA

 

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Determining the status of Tax Return for parents

The parents will be asked to provide information about their tax filing status for the year 2015-

  • The parents should check the option “Already completed”- if they have completed the federal income tax return for the year 2015.
  • They should select “Will file” if they have not yet filed, but are planning to file the FAFSA any time soon.
  • If the parents are not at all required to file the income tax return for the year 2015, they can pick the option “Not going to file.”

Related:Other Errors while applying for FAFSA

If the student selects “Will File” option, the US department of education will send a reminder to complete or update the FAFSA after the income tax returns are filed in the mentioned email id of the parent.

If the income of a parent falls under the income level at which he/she is required to pay taxes, but the parent selects the option “Not going to file,” then the FAFSA will be sent for verification, and discrepancies will have a negative effect in determining the eligibility of a student for federal aid.

These discrepancies should be resolved before the financial aid officer allots the financial aid to the students. Therefore, the entire process must be completed within the specified time.

But the student filing the FAFSA might still ask- Are there exceptions, that are given an extension on the timely requirements-

  • A person who pays taxes and can file IRS Form 4868, will be eligible for a 6-month extension, but he/she has to provide a copy of W-2 forms to the college, and must use the IRS Data Retrieval Tool, or provide a tax transcript after the federal income tax returns are filed.)
  • Armed forces of the United States who serve the nation in the combat zone are an exception to the timely requirements of the FAFSA.

Related:Reviewing the FAFSA and Updating the Information

The parents, while filing the FAFSA will have to give a detailed report about their tax filing status.

The information that might be required, include queries such as- Single, Head of household, Married- filed joint return, Married- filed separate return. Qualifying widow, Don’t know.

But what is the importance of this information?

The information can be used to point out discrepancies, or verification purposes.

FINANCIAL INFORMATION - FAFSA

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Other lessons on FAFSA

FAFSA Related Post

How to Fill up FAFSA Online
IRS Data Retrieval Tool
My FAFSA

Useful Resources

Determining the Dependancy
FAFSA Frequently Asked Questions
Creating The FAFSA Account