Providing Tax Information

The Department of Education stipulates that we must receive tax data directly from the IRS, via one of the following:

 1)     The IRS data retrieval option on the FAFSA (preferred)

2)     A “tax return transcript” ordered from the IRS

 What is the IRS Data Retrieval Process?

This is an option on the FAFSA that eligible applicants can use to import their tax data from a processed tax return from the IRS directly into the FAFSA. The Department of Education is urging families to choose this option in order to complete their FAFSAs more easily and accurately. Data Retrieval Instructions (PDF)

 Who is eligible?

Most applicants will be eligible. Please note that the student and parent(s) need to each choose the option. If an applicant is not eligible based on the responses to the FAFSA questions, the data retrieval option will not be offered.

 However, some applicants will not be able to use this option. If this is the case, and the student is selected for verification, the parent (and student) will need to submit an IRS tax return transcript if they filed a tax return. Tax Return Transcript Instructions (PDF) 

Please read the instruction sheets carefully. While these are somewhat lengthy, knowing the details of each process can be helpful.

 What is a “tax return transcript”?

A “tax return transcript” is a print-out from the IRS that contains most of the information on your tax return. Although the name is similar, it is NOT the same as the tax return that you file. A tax return transcript is provided free of charge by the IRS and can be requested online, by phone, or by mail. If you are not eligible to complete the data retrieval process, or if you have tried repeatedly to complete the data retrieval process without success, you will need to request a tax return transcript.

When will the data retrieval option be available on the FAFSA?

For the 2013-2014 aid year, since the IRS will not be accepting tax returns until January 30, the data retrieval option probably will not be available until later in February once tax returns have started being processed. If you complete your FAFSA prior to this time, once your tax return has been processed, you can log back in to FAFSA and do a correction, this time choosing to use the data retrieval option.

 What if I file my FAFSA before I submit my tax return?

If you are a prospective student, you may need to complete the FAFSA using your best estimates for your 2012 tax information, in order to meet the deadline. Once your tax return has been processed, you can return to the FAFSA to complete the data retrieval option (see sheet for details).

 I filed my FAFSA using estimates, and I have now filed my taxes.  How long will it be before I am able to make the appropriate FAFSA updates using the IRS data retrieval option?

 My son/daughter is a prospective student who has been selected for verification, but the IRS may not process my tax information until after the May 1 decision deadline.  What should I do?

We can process an award estimate for a prospective freshman if the student meets all of the following criteria:

1)     The student and/or his/her parents are unable to submit the data retrieval information or a tax return transcript by April 1.

2)     The tax filing status is listed as “Already Completed” on the most recent FAFSA submission/correction.

3)     All other required verification items have been submitted.

 If the above requirements are met, we will process an award estimate without final tax data. Our goal is to have an estimate to the student in time for the student to make an enrollment decision by Admissions’ May 1 deadline. Final tax data will, however, need to be submitted before award funds can be disbursed. 

What if I’m not selected for verification—do I still need to complete the data retrieval?

Theoretically, no. However, since you don’t know ahead of time if you will be selected for verification, it is best to complete the data retrieval option on the FAFSA if you are eligible. In fact, those who are eligible but choose NOT to complete it are more likely to be selected for verification.

 I’ve been selected for verification but I am not filing taxes – what do I need to do?

You may be asked to complete a verification worksheet.  There is a box to check to indicate that you did not file a tax return.