Transcript 2014-15 FAFSA - MAFAA :: Home

2014-15 FAFSA
& Verification
MAFAA Professional Development Day
St. Paul, MN
October 29, 2013
2014-15 FAFSA
•
Parental information collection changes
GEN 13-12 April 29, 2013
• Applies to dependent students when legal parents live
together
• Legal means biological or adoptive
• Both parents income and other data must be
reported
• Regardless of marital status or gender
• Higher Education Act Section 475 includes the terms
“parent” and “parents” and not gender-specific terms
“mother” and “father”
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2014-15 FAFSA and FAFSA on the Web
•
•
New response of “Unmarried and both parents living
together” will be included as response option for
dependent student’s parents
• Same-sex parents who are married under the
authority of a state or foreign
country who live
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together will choose this option
• Heterosexual parents who live together and are not
married would choose this option
If option selected, parents will not be presented
option of using IRS Data Retrieval Tool
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2014-15 FAFSA
Impact on dependent students only when both of the
student’s legal parents are living together• but are unmarried,
OR
• are of the same sex and in a marriage recognized
under state law, but not federal law
Will
result in collection of information not previously
collected and used in the EFC calculation
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2014-15 FAFSA
•
Will result in fair treatment of all families by
eliminating longstanding inequities that were based
on the legal relationship of the parents (married or
not married) rather than on the parents’ relationship
with their child
In most instances there will be less aid eligibility
because more income and other financial resources
will be included in the EFC calculation
State, private, and institutional aid administrators will
have to determine whether to continue to use the
FAFSA calculated EFC or to make adjustments
•
•
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2014-15 FAFSA
•
No change to unmarried parents not living together
Stepparent information will still be reported when
living with biological/adoptive parent
Stepparent provision does not apply when the
student’s parent is married, under state law, to a
person of the same sex who is not the student’s
legal parent ***
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2014-15 Parental Change
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•
No impact on independent students
Students in same sex marriage under state law continue
to answer the student marital status question as “single”
Consistent with provisions of the Defense of Marriage
Act (DOMA)
Income and other information from the student’s samesex spouse is not collected and used in the calculation
of the student’s EFC
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2014-15 FOTW
Will add logic to prevent students/parents from stating
that assets exceed the asset threshold and then
reporting assets that are less than the threshold
 Asset threshold is asset protection allowance from
EFC formula
 Will increase field lengths for financial questions and
EFC on FAFSA and SAR

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FOTW Skip Logic
Depending upon student’s state of legal residence,
skip logic will be applied
• States that DO NOT allow skip logic Colorado, Georgia, Hawaii, Illinois, Ohio,
Oklahoma, South Carolina, Washington,
Wisconsin, Wyoming, Washington DC
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FOTW Skip Logic WillFor student who qualifies for Automatic Zero EFC
Will give student/parent option to skip untaxed
income and asset questions
For student who qualifies for Simplified Needs Test
 Will give student/parent option to skip asset
questions
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If State Allows Skip Logic Applicant will be asked twice….
First - Do you want to skip remaining questions about
your and your parents income and assets?
Yes: FOTW is finished
No: Asks untaxed income questions and then again
asks if want to skip questions about assets
•
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Asset Threshold Question
Applicant answers that assets do not exceed threshold
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Asset Threshold Question
Applicant answers that assets exceed threshold
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Verification Selection
CPS applies risk model to FAFSA data
 Goal is to target verification based upon most
error prone data items specific to an applicant
 Non-selected applicants are again subject to risk
model when submitting corrections
Corrections flagged as PJ are not subject to
verification edits
 Adding/deleting a school code can trigger a
verification selection
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2014-15 Verification
 Federal Register Notice 06/13/13
One new required verification item for 14/15
Other Untaxed Income from FAFSA questions
45 & 94

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2014-15 Verification
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•
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ED will not publish a Verification Worksheet
• Use suggested text that will be provided in
upcoming IFAP Electronic Announcement
IRS request instructions attached to DCL GEN-13-16
 Do not send families to IRS office to request
transcript
2014-15 Verification
Verification Tracking Groups
• V1 – Standard Verification
• V3 – Child Support Paid Verification
• V4 – Custom Verification
• V5 – Aggregate Verification
• V6 – Household Resources Verification
 DCL GEN-13-16
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V1– Standard Tax Filers

Adjusted Gross Income
 U.S. Income Tax Paid
 Untaxed Portions of IRA Distributions
 Untaxed Portions of Pensions
 IRA Deductions and Payments
 Tax Exempt Interest Income
 Education Credits
 Number of Household Members
 Number in College
 Supplemental Nutrition Assistance Program (SNAP – Food
Stamps if included on ISIR
 Child Support Paid if included on ISIR
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V1—Standard Non Tax Filers

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
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Income Earned from Work
Number of Household Members
Number in College
Supplemental Nutrition Assistance Program (SNAPFood Stamps) if included on ISIR
Child Support Paid if included on ISIR
V3—Child Support Paid

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Child Support Paid by the student (or spouse),
the student’s parent, or both
V4—Custom


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
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High School Completion Status
Identity/Statement of Educational Purpose
Supplemental Nutrition Assistance Program
(SNAP-Food Stamps) if included on ISIR
Child Support Paid if included on ISIR
V5—Aggregate



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High School Completion Status
Identity/Statement of Educational Purpose
AND
All items indicated in V1
 Tax Filer
 Non-Tax Filer
V6 – Household Resources
Other untaxed income on 14/15 FAFSA
•
•
•
•
•
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Payments to tax-deferred pension and savings (Questions 45a and
94a)
Child support received (Questions 45c and 94c)
Housing, food and other living allowances paid to members of the
military, clergy and others (Questions 45g and 94g)
Veterans noneducation benefits (Questions 45h and 94h)
Other untaxed income (Questions 45i and 94i)
Money received or paid on the applicant’s behalf (Question 45j)
AND
• All items indicated in V1
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Verification Exclusions
No Verification Required
 Student dies
 Student receives no Title IV aid
 Student eligible only for unsubsidized aid
 Transfer student who completed verification at
previous school and current school can obtain
certification with ISIR transaction number from
previous school
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Verification Exclusions
Verification of parental information not required Parents cannot be reached by normal means of
communication
 Both parents are mentally incapacitated
Verification of student’s spouse’s information not
required Spouse is deceased
 Spouse is mentally incapacitated
 Spouse cannot be reached by normal means of
communication
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Verification & Professional Judgment
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Regulation requires that all applicants selected for
verification must complete verification before any
PJ adjustments to FAFSA are made
Refers to HEA section 479A(a)
Statement must be included in school’s written
policies and procedures about verification
2014-15 IRS Data Retrieval
IRS Data Retrieval will populate on FOTW• Adjusted Gross Income
• U.S. Income Tax Paid
• Untaxed Portions of IRA Distributions
• Untaxed Portions of Pensions
• IRS Deductions and Payments
• Tax Exempt Interest Income
• Education Credits
School must have code 02
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2014-15 IRS Data Retrieval
CANNOT BE USED when• Married independent student and spouse filed
separate tax returns
• Married parents of dependent student filed
separate tax returns
• When dependent student’s parents are unmarried
and living together
• When student or parent had marital status change
after 12/31/13
• When student, spouse, or parent filed an amended
tax return – 1040X
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Acceptable Documentation
For Items on 2013 Tax Return
•
Information obtained through IRS data retrieval on
FOTW
IRS Request Flag value of 02
OR one of the following-• Tax Return transcript obtained from the IRS
Use matrix posted to IFAP on XXXXX
• Record of Account Transcript obtained from the IRS
• Return Transcript for Taxpayer (RTFTP) obtained
from the IRS
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From Program Integrity Q&A
QuestionWhat if school has both IRS data retrieval information
and the IRS Tax Return Transcript?
AnswerIf any “per computer” amount on Tax Return Transcript
differs from data retrieval amount by $25.00 or more,
ISIR must be corrected.
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2014-15 Verification
When is collection of a paper 2013 tax return
acceptable?
•
•
•
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Amended tax return was filed
Victim of IRS identity theft
Filed non-IRS income tax return
Amended Tax Returns
Acceptable documentation
• Signed copy of the amended tax return (1040 X) that
was filed
AND
• Either a copy of the original tax return that was filed,
an IRS tax return transcript, an IRS Record of Account
Transcript, or a Return Transcript for Taxpayer (RTFTP)
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Victims Of Identity Theft
Collect a signed copy of the paper 2012 tax return that was
filed AND a copy of IRS Form 14039 “Identity Theft Affidavit”
 For taxpayer who does not have IRS Form 14039, collect
either—
 A signed and dated statement indicating tax filer was
victim of IRS identity theft and that IRS is investigating.
Must include certification that taxpayer did file IRS
Form 14039 and did not keep copy OR was not
required to file such form
OR
 A copy of a police report related to identity theft filed by
the tax filer
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Rollover On Tax Return
IRS data retrieval will populate ISIR with untaxed
income
 You must collect Written statement from tax filer indicating the
amount of the distribution that was excluded because
it was an IRS authorized rollover
OR
 Signed and dated notation indicating “Rollover” on
IRS Tax Return Transcript
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Taxpayer Has IRS Extension
Verification is complete if you have -– Documentation
of IRS extension for tax year 2012 &
– 2012 W-2 Forms or statement from self-employed
individual
 School may require an individual granted a tax filing
extension to provide a copy of their completed and
signed tax return when filed
 If school receives a copy of the return, it MUST verify
AGI and taxes paid
 If school does not receive copy, may return all funds
disbursed
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IRS Tidbits

Changing “income earned from work” will NOT
change the IRS data flag

IRS flags do NOT indicate who made change to
data item
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Acceptable Documentation
Income earned from work for non-tax filer
 Signed statement by earner certifying that he/she is
not required to file an income tax return for 2012
 Documentation of sources and amounts of incomeW-2 Form
Signed statement
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2014-15 Change for Non Tax Filers
•
Non tax filers are those individuals who state that they will
not file a tax return for 2013 and are not required to file a
tax return for 2013.
• School must make sure person not required to file using
IRS rules
• W-2 is required but if cannot be provided, school may
accept signed statement certifying• Amount of income earned from work
• Source of income earned from work
• Reason why W-2 is not available in timely manner
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2014-15 Change for Non Tax Filers
•
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If school doubts claim that did not file tax return for
2013, school MUST require IRS “Verification of
Nonfiling”
• Request using IRS Form 4506-T, box 7
IRS will not provide until after 6/15/14
Acceptable Documentation
Child Support Paid - if reported on the FAFSA
Statement signed by child support payor or spouse-
Amount of child support paid
• Name of the person to whom child support was
paid and
• Name of the children for whom child support was
paid
New for 14/15 - Schools may accept records of
electronic payments as documentation that child
support payments were made
•
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Acceptable Documentation
SNAP - Supplemental Nutrition
Assistance Program (Food Stamps)
- if receipt is indicated on the 2014-15 FAFSA
 Documentation
from the agency that issues the Food
Stamps benefit or signed statement from
parent/student that someone in FAFSA household
received benefit in calendar year 2011 or 2012
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From Program Integrity Q&A
What should be done when FAFSA/ISIR does not reflect
receipt of SNAP benefits, but verification documentation
does reflect receipt?
 Three Part Answer
a) If student qualified for simplified needs test or
automatic zero EFC without receipt of SNAP, no
change to ISIR is required.
b. If student could not have qualified for simplified
needs test or automatic zero EFC because of
income, no change to ISIR is required.
c. If after verification, it is determined that receipt of
SNAP on ISIR will benefit student, school must
change ISIR to reflect receipt.
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Acceptable Documentation
Number in Household
 Signed
statement
• Includes name, age, and relationship to applicant
New for 14/15 dependent students
•
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Must include both of dependent’s student legal
(biological or adoptive) parents if parents live
together, regardless of marital status or gender of
parents
Exceptions to Household Size Verification
For dependent student when parents marital status is
– separated
or unmarried (single, divorced, or
widowed) and family size on the FAFSA is 2
– married and family size on the FAFSA is 3
For independent student who is
– separated
or unmarried (single, divorced, or
widowed) with the family size on the FAFSA is 1
– married and the family size on the FAFSA is 2
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Acceptable Documentation
Number in College
Signed statement
• Name and age of each household
member who is/will attend eligible
postsecondary educational institution as
at least a half-time student in award year
• Name of the eligible institution(s) that
each household member is or will be
attending during award year
Not required if applicant is only member in
college
•
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High School Completion Status
•
•
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High School Diploma
• Copy of high school diploma
• Copy of final high school transcript showing
date completed secondary school education
Recognized Equivalent of High School Diploma
• GED certificate
• State certificate received after passing state
authorized exam recognized by state as
equivalent of high school diploma
High School Completion Status
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Recognized Equivalent of High School Diploma
• Academic transcript showing successful
completion of at least a two year program
acceptable for full credit toward a bachelor’s
degree
• For associate degree or higher, documentation
showing the student did not graduate from but
excelled academically in high school and meets all
formalized, written admissions policies of
postsecondary school
High School Completion Status
•
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Homeschool
• Transcript or equivalent signed by parent/guardian
that lists secondary school courses completed and
documents successful completion of secondary
school education
• Secondary school completion credential for
homeschool
2014-15 Change For High School
Completion Status
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If school has obtained acceptable documentation of
student’s high school completion status prior to
verification selection in Group V4 or V5, that
documentation does not need to be obtained again
High completion in a foreign country
 If student cannot provide copy of diploma or transcript,
school may accept copy of “secondary school leaving
certificate” or other similar document obtained through
appropriate government agency in country where high
school was completed (ex: Ministry of Education)
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Identity/Educational Purpose
Documentation of identity/statement of educational
purpose
•
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Appear in person and present to an institutionally
authorized individual-• A valid government-issued photo identification
(driver’s license, non-driver’s license, military
identification, or passport); and
• A signed statement of educational purpose
Identity/Educational Purpose
Documentation of identity/statement of educational
purpose
• If unable to appear in person, must provide the
institution
• A copy of a valid government-issued photo
identification (driver’s license, non-driver’s
license, or passport); and
• An original notarized statement of educational
purpose signed by the applicant
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Identity/Educational Purpose
Documentation of identity/statement of
educational purpose
•
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School must maintain, an annotated copy of the
identification submitted by the applicant that
includes
• The date documentation was received; and
• The name of the institutionally-authorized
individual that obtained the documentation
2014-15 Change Identity/Statement Of
Educational Purpose
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•
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School must obtain ORIGINAL, signed statement of
educational purpose
May convert to electronic record after examination for
accuracy and completeness, for record retention
purposes
V1 and V5 Auto Zero EFC
Dependent students
 Parents’ adjusted
gross income if tax filers
 Parents’ income earned from work if not tax filers
 Receipt of SNAP benefits if receipt qualified
student for auto zero EFC
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V1 and V5 Auto Zero EFC
Independent Students
 Student
and spouse’s adjusted gross income if
tax filers
 Student and spouse’s income earned from work
if not tax filers
 Number of household members
 Receipt of SNAP benefits if receipt qualified
student for auto zero EFC
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Updating
•
•
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FAFSA information is generally considered a
snapshot
Must update for –
• Dependency status changes (all applicants,
anytime unless marital status of applicant
changes)
• Household size and number in college for
selected applicants at time of verification
Updating For Marital Status
You may require updating due to change in
applicant’s marital status if you determine update
is necessary to address inequity or accurately reflect
ability to pay and
• Student is selected for verification
OR
• Marital status change results in dependency
status change
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Student’s Marital Status Changes
Students use FAFSA on the Web to update their
marital status after submission of FAFSA
 EFC will not be calculated & Reject 21 gets set
 Only an FAA can override the reject
 Instructions have been modified to the following –
“Report your marital status as of the date you
sign your FAFSA. If your marital status changes
after you sign your FAFSA check with the
financial aid office at the college.”
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Student’s Marital Status Changes
When you allow an update for change in marital
status, you must update all information to be
consistent with the updated marital status
 Dependency status, adding or excluding spouse’s
income and assets, and adding or excluding parental
information
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Verification & Interim Disbursements
For 2012-13 and forward
• Interim disbursements may be made without receipt
of corrected ISIR if completed verification makes no
change to aid eligibility
• However all required corrections must be
submitted to CPS and school must receive
revised ISIR transaction
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Verification Completed After Enrollment
Has Ended
 Student no longer limited to lesser Pell award if
verification completed after enrollment ends
 Student would receive Pell payment based
upon correct EFC
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From Program Integrity Q&A
QuestionMay a school disburse unsubsidized aid before
completing verification when student has eligibility for
subsidized aid?
AnswerYes, a disbursement of unsubsidized aid may be
made, but the subsidized aid must be included as
estimated financial assistance in determining eligibility.
And once verification is complete, make sure no
overaward exists.
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I would appreciate if you would take the
time to submit an evaluation of my sessions
electronically at the site below.
http://s.zoomerang.com/s/JamieMalone
You may also send an email to [email protected]
Thanks, Jamie
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QUESTIONS?
Jamie A. Malone
Training Officer
U.S. Department of Education
312-730-1528
[email protected]
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