After completing your Free Application for Federal Student Aid (FAFSA), you will receive an email with a link to your Student Aid Report (SAR). The SAR is a document that recaps the data you provided on the FAFSA and offers some basic information about your eligibility for federal financial aid. On this SAR, you may read that you’ve been selected for verification. Typically an asterisk appears next to the Expected Family Contribution (EFC) number near the upper right corner on the SAR, which indicates your information must be verified.
Verification is a process in which the school’s financial aid office must confirm the information provided on your FAFSA is accurate. About one-third of all students are selected for verification because questions may have been left blank, the data provided is inconsistent, or they’re just randomly chosen. If this happens, don’t worry. The financial aid office at the schools you’ve applied to will contact you and request additional documentation they’ll need to complete the verification process. Be sure to respond promptly and meet all deadlines set by financial aid personnel.
After you submit the requested materials to your school’s aid office, follow up with them to ensure it’s been received. Remember, you must complete the verification process in order to receive any federal or state student aid. If you have questions about the process, contact your school’s financial aid office.
Please be advised that the IRS Data Retrieval Tool (DRT) will be unavailable Saturday, Jan. 12, from 5:00 a.m. to 11:00 a.m. Central Standard Time. The DRT is used for transferring student and parent tax information from the IRS to the FAFSA application. During this outage, users may still access and complete the FAFSA. However, if any action requires entry of federal tax information, it must be provided manually. Applicants may wish to complete the FAFSA after the outage is over.
Have you heard? There’s a new 1040 form coming, and it will be available for the 2018 tax year. Here’s a brief summary of the changes to the form.
- The new 1040 replaces the current form, as well as form 1040-A and 1040-EZ. All taxpayers will now be using the same form.
- The new form contains 23 lines; the 1040 for tax year 2017 contained 79 lines.
- More schedules/forms will now be available. According to the IRS (Internal Revenue Service), they used a ‘building block approach’ when drafting these changes. All filers will now use the new 1040, and those with more than the basic details to report will attach one or more schedules or forms to their return.
- At least six new schedules will be available, numbered one through six. Do you remember schedules that are lettered–Schedule A, B, C, etc.? For the most part, they’re still in play, and you can continue to use them to report your 2018 income tax information.
- Here’s an example of how your reporting methods may change. If you claimed an education credit for 2017, it would have been entered on Line 50 of the 1040 form. For the 2018 tax year, if you claim an education credit you’ll complete a Schedule 3 (Nonrefundable Credits), and then include the total from Schedule 3 on Line 12 of the new form.
The purpose of these changes is to make the filing process less burdensome for a great many filers who usually didn’t have any ‘extras’ to report in previous years.
For more information about the changes coming for the 2018 tax year, see these two informative articles at Forbes.com:
Here’s How The New Postcard-Sized 1040 Differs From Your
Current Tax Return
IRS Announces 2018 Tax Rates, Standard Deductions, Exemption Amounts And More
*All information is based on IRS drafts of 2019 tax forms and is subject to change.
We hope you have a great 2019! Be sure to fill out your FAFSA!