ISFAA High School Counselor Workshop

Fall 2014

Agenda …

o Am I Dependent or Independent?o Who is my “Parent” when I fill out the

FAFSA?o Completing the IRS Data Retrieval (DRT)

Am I Dependent or Independent?A student’s dependency status determines if the student will need to provide parental information when completing the FAFSA.

o Dependent status requires parent and student information.

o Independent status requires student information (and spouse if student is married).

Am I Dependent or Independent?

Am I Dependent or Independent?

What is half support?o Each college/university has a policy

about the amount it regards as sufficient for half support.

o Student can count:• child support received from or paid to child’s other

parent, • government programs such as TANF and SNAP, and • cash/support from friend with whom student lives.

(FSA HB 1415, AVG-27)

Am I Dependent or Independent?

Unaccompanied/Homelesso Unaccompanied = “not living in the

physical custody of parent or guardian.”o Homeless = “lacking fixed, regular and

adequate housing” including: • temporarily living with other people because you

have no where else to go;• fleeing an abusive parent even if your parent would

provide support and a place to live.

o Determination by school district homeless liaison or director of HUD-funded housing program.

No official determination?

Contact the financial aid office!

FAOs will discuss options todetermine if the student

qualifies for a dependency override.

Am I Dependent or Independent?

Am I Dependent or Independent?

Who is my “parent” when I fill out the FAFSA?Students are considered a dependent and are required to provide information about their parent(s) but what if their parents are:

o Divorced and are not remarried?o Custodial parent, parent with whom the student

lived most, or parent who provided more support.

o Divorced and are remarried?o Custodial parent and stepparent.

Who is my “parent” when I fill out the FAFSA?

o Adopted you before you turned 13? o Adoptive parent(s).

o Adopted you after you turned 13? o Student does not provide parent data;

independent for FSA purposes.

o Are not married but live together? o Both parents, including those in a same-sex

relationship.

Completing the IRS Data Retrieval (DRT)If the family has completed/submitted their taxes, be sure to consider the option in FAFSA on the Web to use the IRS Data Retrieval Tool (IRS DRT).

Completing the IRS Data Retrieval (DRT)How the IRS DRT Process works:oStudent is taken directly into the IRS website when they choose the IRS DRT oIRS site provides a preview of the information for the tax filer to review prior to agreeing to transfer the data to your FAFSAoThe FAFSA will reflect the tax information populated during the “transfer from the IRS” and will be marked as such

Can my parent(s) use the IRS Data Retrieval (DRT)? o Did either or both parents file as “Married

Filing Separately”?o Did either or both parents file as “Head of

Household”?o Did parent(s) file an amended return?o Did parent(s) file a Puerto Rican or

foreign tax return?o Did parent(s) file taxes electronically in

the last 3 weeks (or by mail in the last 8)?Must be able to answer “No” to each

question.

Can I as a student use the IRS Data Retrieval (DRT)?o Did the student file an amended return?o Did the student file a Puerto Rican or

foreign tax return?o Did the student file taxes electronically

within the last 3 weeks (or by mail within the last 8 weeks)?

Must be able to answer “No” to each question.

Completing the IRS Data Retrieval (DRT)

Completing the IRS Data Retrieval (DRT)

Completing the IRS Data Retrieval (DRT)

Completing the IRS Data Retrieval (DRT)

Why should I use the IRS Data Retrieval (DRT)?o About 1 out of every 3 FAFSA

applications is selected by the Central Processing System (CPS) for verification.

o Common information for verification requires student/parent to confirm:• People in the parent’s household • People in the household who will be enrolled in

college at least half time• Tax and income information• Receipt of SNAP benefits• Verification of child support paid

Advantages of the IRS Data Retrieval (DRT):o The income/federal tax information

required for verification is available immediately.

o Data is transferred directly to the appropriate questions on the FAFSA; providing a high level of accuracy.

o The information is submitted directly to the college/university’s listed on the FAFSA.

Verifying income and federal tax informationo Financial aid staff are allowed to accept:

• IRS DRT data that has not been changed• IRS tax return transcript

o Signed copies of a federal tax return is no longer acceptable with the exception of very limited unusual circumstances.

What if I am not able to use the IRS Data Retrieval (DRT)?o When the IRS tax return transcript is

necessary, student/parent may request the transcript from the IRS:• Print PDF from www.irs.gov/transcript.

• Requires the user to create an account and verify their identity.

• Online request at www.irs.gov/transcript to have IRS mail transcript to taxpayer. • Transcript arrives in 5 to 10 calendar days.

My FAFSA result is misleading because…

o Contact college financial aid office to request consideration of special circumstances

o Will be asked to submit verification and other supporting documentation

o Financial aid officers can make professional judgment

How you can help:

o Financial Aid Nighto College Goal Sunday: Feb. 22,

2015 o April & May reminders: Check

college mail, e-mails, data accesso May 1 reminder: Check e-Student

at www.in.gov/sfa for edits