2014-15 fafsa & verification - scasfaa · 2013. 11. 12. · 11/06/13 jamie a. malone u.s....

11/06/13

Jamie A. Malone U.S. Department of Education 1

2014-15 FAFSA

& Verification IASFAA

Dubuque, IA

November 6, 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”

2

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

• Heterosexual parents who live together and are not

married would choose this option

• Same-sex parents who are not legally married under

the authority of a state or foreign country but live

together will choose this option

• If option selected, parents will not be presented

option of using IRS Data Retrieval Tool

3

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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

4

2014-15 FAFSA Change

Independent Students

• If in a same sex relationship and legally married in a

state or foreign country that permits same sex marriage,

should indicate “married” on FAFSA

• Changed because of Supreme Court ruling on the

Defense of Marriage Act (DOMA)

5

2014-15 FAFSA Changes

• “GED or state equivalent test” - #26

• Tax return filing status - #34/#82

• Single, head of household, married joint, married

separate, qualifying widow(er)

• Removed hope tax credit - #35, #44, #83, #93

• Removed first time homebuyer tax credit - #45/#94

• Added “Don’t include extended foster care benefits”

• Added include “untaxed portions of health savings

accounts”

11/06/13


2014-15 FAFSA Changes

• Money received or paid on your behalf now includes

“money that you received from a non-custodial

parent that is not part of a legal child support

agreement” - #45

• Added in definition of veteran “including basic

training” - #50

• Incremented July 1 date to 2013- #56/#57/#58

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

8

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 Will-

For 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

10

Asset Threshold Question

Applicant answers that assets do not exceed threshold

11

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

13

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

14


• 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

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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

16

17

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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 19

V1—Standard Non Tax Filers

Income Earned from Work

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

20

V3—Child Support Paid

Child Support Paid by the student (or spouse),

the student’s parent, or both

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V4—Custom

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

22

V5—Aggregate


Identity/Statement of Educational Purpose

AND

All items indicated in V1

Tax Filer

Non-Tax Filer

23

V6 – Household Resources

Other untaxed income on 14/15 FAFSA

• 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

26

Verification & Professional Judgment

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

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11/06/13


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

29

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 that will be posted to IFAP

• Record of Account Transcript obtained from the IRS

• Return Transcript for Taxpayer (RTFTP) obtained

from the IRS

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31

From Program Integrity Q&A

Question-

What if school has both IRS data retrieval information

and the IRS Tax Return Transcript?

Answer-

If any “per computer” amount on Tax Return Transcript

differs from data retrieval amount by $25.00 or more,

ISIR must be corrected.

32


When is collection of a paper 2013 tax return

acceptable?

• Amended tax return was filed

• Victim of IRS identity theft

• Filed non-IRS income tax return

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11/06/13


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)

34

Victims Of Identity Theft

Collect a signed copy of the paper 2013 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

35

Rollover On Tax Return

IRS data retrieval will populate ISIR with untaxed

income without consideration of rollover

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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11/06/13


Taxpayer Has IRS Extension

Verification is complete if you have --

– Documentation of IRS extension for tax year 2013

&

– 2013 W-2 Forms or statement from self-employed

individual

School may require an individual granted a tax filing

extension to submit the tax information once filed, either

via IRS data retrieval or IRS tax return transcript

If school receives tax return information, MUST verify

AGI and taxes paid

If school does not receive information, may return all

funds disbursed 37


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 2013

Documentation of sources and amounts of income-

W-2 Form

Signed statement

38

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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11/06/13


2014-15 Change for Non Tax Filers

• 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

40


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

41


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 2012 or 2013

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11/06/13



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.

43


Number in Household

Signed statement

• Includes name, age, and relationship to applicant

New for 14/15 dependent students

• Must include both of dependent’s student legal

(biological or adoptive) parents if parents live

together, regardless of marital status or gender of

parents

44

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

45

11/06/13



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

46


• 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

47


• 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

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11/06/13



• 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

49

2014-15 Change For High School

Completion Status • 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)

50

Identity/Educational Purpose

Documentation of identity/statement of educational

purpose

• 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

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11/06/13



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

52


Documentation of identity/statement of

educational purpose

• 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

53

2014-15 Change Identity/Statement Of

Educational Purpose

• School must obtain ORIGINAL, signed statement of

educational purpose

• May convert to electronic record after examination for

accuracy and completeness, for record retention

purposes

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11/06/13


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

55

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

56

Updating

• 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

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11/06/13


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

58

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.”

59

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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11/06/13


Verification & Interim Disbursements

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

61

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

62


Question-

May a school disburse unsubsidized aid before

completing verification when student has eligibility for

subsidized aid?

Answer-

Yes, 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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11/06/13


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

64

QUESTIONS?

Jamie A. Malone

Training Officer

U.S. Department of Education

312-730-1528

[email protected]

65

http://s.zoomerang.com/s/JamieMalone

mailto:[email protected]

2014-15 fafsa & verification - scasfaa · 2013. 11. 12. · 11/06/13 jamie a. malone u.s....

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