2014-2015 Verification – Other Untaxed Income

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Transcript 2014-2015 Verification – Other Untaxed Income

Tanya McGee
Katie Starling
Kansas State University
October 3, 2013
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2013-2014: Where we are
• 2014-2015: Where we are going
• Impact of GEN-13-12
• Discussion/Question & Answer
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Data elements to verify remained largely the
same as 2012-13
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High school completion status and Identity/
Statement of Educational Purpose were added
Introduction of verification groups
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V1, V2, V3, V4, V5
Student should remain in the same verification group
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Household size
• Number in college
• Income information for tax filers
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AGI
Taxes Paid
Education Credits
Specific untaxed income: IRA distributions, pensions,
IRA deductions, and tax exempt interest
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Income information for non-tax filers
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SNAP benefits (ie. Food Stamps)
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Income earned from work
Only if ISIR indicates this was true
Child Support Paid
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Only if ISIR indicates this was true
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High School Completion Status
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Recognized equivalents of high school diploma
Identity/Statement of Educational Purpose
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Must use exact wording provided by ED for the
Statement of Educational Purpose
Received
(duplicated)
Loaded
(unduplicated)
Total ISIRs
45,335
19,280
Total Selected
18,329
5,500
V1
18,103
5,448
V2
24
10
V3
112
33
V4
11
0
V5
75
8
As of Monday, September 30, 2013
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Red ribbon year? Maybe blue, green, white?
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Federal Register published June 13, 2013
• Dear Colleague Letter, GEN-13-16, published
June 13, 2013
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Verification group changes
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Say goodbye to V2 – SNAP
Say hello to V6 – Household Resources
Applicants will no longer be assigned to V2, but
we will still be required to verify SNAP in the
other verification tracking groups (V1, V4, V5, V6)
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Verification items remain the same as AY14, but
with one addition
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Other Untaxed Income
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Introduction of the new verification tracking group –
V6, Household Resources
Q45 for the student and Q94 for the parent(s)
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Payments to tax-deferred pension and savings plans
Child support received
Housing, food and other living allowances paid to
members of the military, clergy and others
• Veterans noneducation benefits
• Other untaxed income (workers’ compensation,
untaxed portion of health savings accounts, etc.)
• Money received or paid on the student’s behalf
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Acceptable documentation includes:
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Signed statement by the student and parent, if
applicable, that lists the untaxed income amounts
Copies of the 2013 W-2s from all sources of income
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If the FAA determines the income verified does
not appear to provide sufficient financial support,
the student or parent must explain how the
family was financially supported during calendar
year 2013.
• Income sources: AGI, income earned from work,
all untaxed income, and other untaxed income not
included on the FAFSA.
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Hence, the name for the new tracking group Household Resources
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Hey! You’re living on nothing! Prove it!
Sources of income can include the “usual” items
But could also include untaxed income not listed on
the FAFSA
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Welfare benefits
Additional child tax credit
Earned income credit
Untaxed social security benefits
Supplemental security income (SSI)
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Household Resources
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ED will not be specifying an income threshold
Leaving that to the institution to define
How will you determine your “magic” number?
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Use poverty guidelines?
What seems appropriate/necessary for a certain
family’s size and geographic location?
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Nontax filers – if an institution questions the
claim of not filing, the institution may/must
require the student to submit a “Verification of
Nonfiling” from the IRS.
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The IRS will not be issuing until after June 15, 2014.
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High School Completion Status
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Previously collected HS Completion documentation
may be used as long as it meets the criteria outlined
in the Federal Register.
High School Completion Abroad – may obtain a copy
of a “secondary school leaving certificate” through
the appropriate government agency
Homeschool – secondary school completion
credential vs. transcript signed by student’s parents
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Identity/Statement of Educational Purpose
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Specific text for 2014-2015 provided in the Federal
Register
Documentation may be converted into an electronic
record (ie. your imaging system)
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Household Size
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Includes parents who are married or unmarried and
living together, irrespective of gender
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GEN-13-12
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Beginning with 2014-2015, dependent students
will be required to provide income information
from the student’s legal parents (biological or
adoptive) regardless of marital status or gender,
if those parents live together.
• In the past, income has been excluded when the
parents were unmarried, even if the parents were
living together.
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Philosophy – the family should help pay the
educational expenses of their child.
• Help to ensure limited taxpayer resources are
directed to students with the most need,
regardless of the parents’ marital status or
gender, when those parents are living together.
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New response to FAFSA question, “As of today,
what is the marital status of your legal parents?”,
will include “Unmarried and both parents living
together.”
• FAFSA on the Web will no longer have
mother/father reference, but will reference
Parent1/Parent2.
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Required to enter Identity Verification Results
into FAA Access (V4 and V5)
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Manually enter information one student at a time.
FAA Access will accept a flat file after April 2014.
Must enter results even for non-respondents.
Possible Topics
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Impact to your verification forms
• Impact to your student systems
• Impact to your website
Federal Register, published June 13, 2013
http://ifap.ed.gov/fregisters/attachments/FR061313FAF
SAInformationToBeVerifiedforthe20142015AwardYear
Dear Colleague Letter (GEN-13-16), published 6/13/13
http://ifap.ed.gov/dpcletters/GEN1316.html
2013 NASFAA Conference, Department of Education
Verification session handout/audio
www.nasfaa.org/conference/videos/ed-sessions.aspx
NASFAA’s News July 30, 2013 – FAA Access Reporting for
Verification of Identity and HS Diploma Required in 2014-15
www.nasfaa.org/Main/orig/2013/FAA_Access_Reporting_Fo
r_Verification_Of_Identity_And_High_School_Diploma_Req
uired_In_2014%e2%80%9315.aspx
Tanya McGee
Associate Director
Office of Student Financial Assistance
Kansas State University
[email protected]
Katie Starling
Assistance Director
Office of Student Financial Assistance
Kansas State University
[email protected]