When you submit your Free Application for Federal Student Aid (FAFSA) on or after Oct. 1 this year, you’ll be required to report your income and tax information, along with that of your parents or spouse, if applicable. The tax year will always be two years before the start of the academic term for which you’re applying for aid. For example, if you’re going to submit a FAFSA for the 2021-2022 school year, you’ll need your 2019 tax information.
Many applicants will choose to use the IRS Data Retrieval Tool (DRT), which will automatically transfer the information from a designated tax return to their FAFSA. But even if your use the DRT, it’s still helpful to have your tax return and W-2s on hand when you complete your FAFSA.
Here are two reasons why:
- If a tax return was filed as ‘Married, Filing Jointly’ and two people who filed a joint return are reporting their income on a FAFSA, they’ll still need to report their two incomes separately. Their separate incomes are shown on their W-2s.
- Occasionally, the IRS website may be slow, or the IRS DRT may be a little uncooperative. It’s also possible that a filer may not qualify to use the DRT. In order to continue, you may find it easier just to enter the income and tax figures yourself. In order to do that, you’ll need your tax return. The good news here is that the FAFSA will direct you to the correct line of the tax return for the information requested.
Ensuring that everyone whose information is required on your FAFSA knows the location of their latest tax return will make the whole FAFSA process more comfortable for everyone involved. After all, October is really not that far away!