Related: How to Request a Tax Return Transcript

The 2013-14 Free Application for Federal Student Aid (FAFSA) was revised to make the form easier to complete and to improve the accuracy of the information provided on the form. These changes may impact when and how your 2012 federal tax returns are filed and how the 2013-14 FAFSA is completed.

• Don't forget! File the 2013-14 FAFSA
• File by February 15 at www.fafsa.gov to meet the March 1 Priority Deadline
• Don’t Wait, Estimate! Use income estimates if you haven’t filed your 2012 federal tax return yet.
  Are you eligible to use the
  IRS Data Retrieval Tool?
• Use the IRS Data Retrieval Tool to efficiently update your FAFSA with 2012 tax information.
• What’s your next step?
• Complete the Verification Worksheet
  • 2013-14 Dependent Student Verification Form
  • 2013-14 Independent Student Verification Form
• Submit your 2012 Tax Data
• Use IRS Data Retrieval Tool to transfer your 2012 tax data directly into your 2013-14 FAFSA. Follow these steps if you are eligible. (See if you're eligible.)
• Or request a 2012 Tax Return Transcript. Follow these instructions on How to Request a Tax Return Transcript.
• Other Verification Concerns
  • My tax data is not available in the IRS Data Retrieval Tool.
  • I am (or my parents are) not eligible to use the IRS Data Retrieval Tool.
  • I (or my parents) filed an amended tax return or a tax extension.
  • I (or my parents) have a 2012 IRA or Pension Rollover.

Are You Eligible to Use the IRS Data Retrieval Tool?

Dependent and independent applicants (and the dependent applicant’s parent) who meet all of the following criteria may be eligible to use the 2013-2014 IRS Data Retrieval process:

• Must have a valid Social Security Number and legal name match,
• Must have filed a 2012 federal tax return, and
• The following does not apply to the applicant and/or parent(s)’ tax filing and/or marital status:
• Married Filing Separately
• Married Filing Head of Household
• Filed or will file an amended 2012 tax return
• Filed a Puerto Rican or foreign tax return
• Filed using a Tax ID Number (TIN)
• Marital status from January 1, 2012 through May 10, 2014 has changed
• Applied for a 2012 Federal IRS Tax Filing Extension
• Tax Transcript not obtainable due to Victim of IRS Identity Theft
• 2012 Federal Tax Return was recently filed

What is Your Next Step?

Applicant and/or Parent Eligible to Transfer Data

Click here to watch a tutorial on how to use the IRS Data Retrieval with your FAFSA. If the above tax filing or marital status criteria are not applicable to the student and/or parent, he or she is eligible to transfer 2012 tax data from the IRS to the 2013-14 FAFSA:

• Enter Your Federal Student Aid PIN
• When a married parent needs to provide his or her Federal Student Aid PIN, the FAFSA process will ask which parent is linking to the IRS Web site to determine which parent’s Federal Student Aid PIN is required for the FAFSA.
• When a student is completing an initial FAFSA, the FAFSA process will ask the applicant to enter their Federal Student Aid PIN before linking to the IRS Web site.
• Link to Federal Student Aid PIN Options:

• “Apply For A PIN,” for applicants who don’t have a Federal Student Aid PIN; or
• “I Forgot/Don’t Know My PIN,” for applicants who have a Federal Student Aid PIN
• Link to IRS button with PIN

Tax Return(s) Recently Filed/Tax Data Not Available to Transfer

If the applicant and/or parent recently filed 2012 federal taxes, the FAFSA process will inform the applicant that tax information electronically filed (within the last 2 weeks) or submitted by mail (within the last 8 weeks) may not be available. Click here for the IRS Data Retrieval Tool Availability Chart.

Applicant and/or Parent Not Eligible to Transfer Data

When one or more of the first eight tax filing or marital status filtering questions above is applicable, the FAFSA process will bypass the option to Link to the IRS and inform the applicant, based on his or her response, that he or she is not eligible to transfer tax data from the IRS to the FAFSA.

If you are ineligible to use the FAFSA Link to IRS feature because of your 2012 tax filing and/or marital status, and your 2013-14 FAFSA is selected for Verification, you will be required to submit the following documentation to verify your reported FAFSA income data:

Status	Required Income Verification for Tax Filers
Married Filing Separately	Signed 2012 Federal IRS Tax Return Transcript for BOTH tax filers.
Married Filing Head of Household	Signed 2012 Federal IRS Tax Return Transcript.
Filed or Will File Amended Return	Signed 2012 IRS Income Tax Return *and* signed 2012 IRS Form 1040X.
Filed Puerto Rican Tax Return	Signed copy of the 2012 Puerto Rican Tax Return.
Filed Freely Associated States (Republic of the Marshall Islands, Republic of Palau and Federated States of Micronesia) Tax Return	Signed copy of the 2012 Wage and Tax Statement from each employer *and* signed statement identifying all 2012 income and taxes.
Filed Foreign Tax Return	Signed copy of an official English translation of the 2012 Foreign Tax Return
Victims of IRS Identity Theft	Signed 2012 IRS Income Tax Return *and* one of: Signed copy of IRS Form 14039 “Identity Theft Affidavit” or Signed and dated statement stating that the tax filer was a victim of IRS identity theft and that the IRS is investigating the matter or Signed police report that may have been filed by the tax filer.
Marital Status Changed for period January 1, 2012 through May 10, 2014. This may include one of the following:
Parent of a dependent student whose income is used in the calculation of the applicant's Expected Family Contribution (EFC) if the parent filed a joint income tax return and the parent is married to someone other than the individual included on the joint income tax return.	Signed Parents' joint 2012 Federal IRS Tax Return Transcript IRS Form W-2 for each source of employment income received for tax year 2012 Step-parent signed 2012 Federal IRS Tax Return Transcript
Parent of a dependent student whose income is used in the calculation of the applicant's Expected Family Contribution (EFC) if the parent filed a joint income tax return and the parent is separated, divorced, or a widow of the individual included on the joint income tax return.	Signed Parents' joint 2012 Federal IRS Tax Return Transcript IRS Form W-2 for each source of employment income received for tax year 2012.
Independent student who filed a joint income tax return and who is married to someone other than the individual included on the joint income tax return.	Signed Student joint 2012 Federal IRS Tax Return Transcript IRS Form W-2 for each source of employment income received for tax year 2012 Signed 2012 Federal IRS Tax Return Transcript for spouse
Independent student who filed a joint income tax return and who is separated, divorced or a widow of the individual included on the joint income tax return.	Signed Student joint 2012 Federal IRS Tax Return Transcript IRS Form W-2 for each source of employment income received for tax year 2012

 

Verification Required and a 2012 Federal IRS Amended Tax Return Was Filed

The IRS Data Retrieval Tool cannot be used to update the 2013-14 FAFSA when the applicant and/or parents have filed an amended return. Tax documentation to be submitted when 2012 taxes have been amended include: a signed 2012 IRS Income Tax Return *and* a signed 2012 IRS Form 1040X.

Verification Required and a 2012 Federal IRS Tax Extension Was Filed

When the applicant’s FAFSA is selected for verification but the applicant and/or parent(s) have applied for a 2012 IRS Extension to File:

Submit the following documents by the Missing Information Letter (MIL) request date:

• Fully completed and signed 2013-14 Verification Worksheet.
• Copy of 2012 IRS Form 4868 – Application for Automatic Extension of Time to File U.S. Tax Return; copy of the IRS approval of an extension; and/or if applicable, a copy of IRS approval of an extension beyond the automatic six-month extension if the individual requested an additional extension of filing time for tax year 2012.
• Copy of IRS Form W-2 for each source of employment income and/or a signed statement by a self-employed individual certifying the amount of the AGI and the U.S. income tax paid for tax year 2012.

Interim Verification 

Verification is temporarily completed when the above documentation has been received.

Final Verification

Verification is not complete until the FAFSA reflects the actual 2012 Federal IRS Tax Return data. Final Verification is required once the tax return has been filed or before the end of the enrollment period, whichever comes first, or 2013-14 financial aid must be cancelled.

Applicant and/or Parent Eligible to Transfer Data:
Visit www.fafsa.gov/, FAFSA Corrections, 2013-14, and choose the FAFSA Link to IRS feature once your 2012 federal tax return has been processed and the data is available to transfer to your FAFSA.

Applicant and/or Parent Not Eligible to Transfer Data:
If ineligible for the Link to IRS feature, submit a signed copy of your 2012 Federal IRS Tax Return Transcript.

Tax Return IRA and Pension Rollovers and IRS Data Retrieval

When you click on Link to IRS within your 2013-14 FAFSA or 2013-14 FAFSA Corrections, you transfer your Federal Adjusted Gross Income, IRS tax paid, Tax Exempt Interest Income, Education Credits, Untaxed IRA Distributions and Untaxed Pensions from your 2012 Federal U.S. Tax Return on the IRS website to your 2013-14 FAFSA.

What Tax Return Information Does Not Transfer to Your FAFSA?

The following does not transfer from your tax return.   You must manually enter this information on your FAFSA:

• Choose  “Already Filed/Completed” a tax return;
• Select Tax Return Filed – (1040, 1040A, or 1040 EZ);
• Student, Father, and/or Mother’s Income Earned from Work (wages, salaries, tips, business income).

What Happens with Your IRA and/or Pension Rollover?

The data retrieval tool does not identify and exclude tax return IRA and/or Pension distributions that have been rolled over into another account. It will take the IRA/Pension distribution minus the taxable portion of the distribution and enter the result as untaxed IRA and/or Pension on your FAFSA. This may result in a higher Expected Family Contribution (EFC) than you should have.

What Should You Do If You Have a 2012 IRA or Pension Rollover?

• Do not attempt to correct the information yourself. By changing any of the tax data, you compromise the data transferred from the IRS. 
• Provide the following documentation to Marquette Central:
  • A written notice/request for a correction to your FAFSA Untaxed IRA and/or Pension Rollover.
  • A copy of Page 1 of your Federal IRS Tax Return.
  • A copy of IRS Form 1099 from the organization the IRA or Pension was rolled into.
• As long as you have not compromised the tax data by making changes to your FAFSA, once your documentation is received, it will be reviewed and processed.

You Transferred the IRS Data But You Already Updated the Rollover Figures Yourself. Now What Do You Do?

• Go to www.fafsa.gov, 2013-14 FAFSA Corrections.
• Select Link to IRS to again transfer your tax data to your 2013-14 FAFSA.
• Do not make any changes to the transferred tax data.
• Provide the following documentation to Marquette Central:
• A written notice/request for a correction to your FAFSA Untaxed IRA and/or Pension Rollover.
• A copy of Page 1 of your Federal IRS Tax Return.
• A copy of IRS Form 1099 from the organization the IRA or Pension was rolled into.
• Once your documentation is received, it will be reviewed and processed.

 

Related: How to Request a Tax Return Transcript