Utilizing the IRS Data Retrieval Tool

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1 Utilizing the IRS Data Retrieval Tool within the FAFSA on the Web Application What is the IRS Data Retrieval Tool? The IRS Data Retrieval Tool allows a student and/or parent, if applicable, to populate required income and tax information on the Free Application for Federal Student Aid (FAFSA) by retrieving the information directly from the Internal Revenue Service (IRS). The IRS Data Retrieval Tool is found within the online FAFSA, also known as FAFSA on the Web. 1

2 Why should students and parent(s), if applicable, utilize the IRS Data Retrieval Tool? Starting with the academic year, federal student aid regulation no longer allows colleges/universities to collect photocopies of federal tax returns for verification purposes. Income and federal tax information that has been retrieved from the IRS using the IRS Data Retrieval Tool and has not been changed by the student or the parent, if applicable, does not need to be reviewed for verification purposes, since it is already considered to be official, accurate IRS data. Who Should Use the IRS Data Retrieval Tool? K State s Office of Student Financial Assistance urges all students and parents, if applicable, to utilize the IRS Data Retrieval Tool that is part of FAFSA on the Web. For eligible federal tax filers the IRS Data Retrieval Tool simply represents the timeliest and most efficient method for providing accurate income and tax data. Beginning with the academic year, federal tax filers who are ineligible or unwilling to utilize the IRS Data Retrieval Tool are likely to experience greater delays in student aid processing if selected for verification, due to the fact that the student/parent will need to provide alternate documentation from the IRS to substantiate income/tax information. 2

3 What happens if I want to submit a FAFSA before I or my parent, if applicable, has filed federal taxes? If you and/or your parent, if applicable, plan to file a federal tax return, but have not yet done so, K State s Office of Student Financial Assistance encourages you to submit your initial FAFSA indicating that you and/or your parent, if applicable, will file but have not yet done so. Important: After federal taxes have been successfully filed it is, however, critical that you return to your online FAFSA and perform a correction, using the IRS Data Retrieval Tool, if possible, to update income/tax information. See next slide for more information. How do I update income/tax information after federal taxes have been filed? Access the FAFSA on the Web at Log in to your FAFSA record Select Make FAFSA Corrections Navigate to the Financial Information Section of the form From there, follow directions to utilize the IRS Data Retrieval Tool Be sure that you and your parent, if applicable, do not make any changes to tax/income information, after it has been retrieved from the IRS before submitting your new, corrected FAFSA. 3

4 How long must I wait before I or my parent, if applicable, can use the IRS Data Retrieval Tool after filing federal taxes? According to the U.S. Department of Education, it may take up to two weeks for the IRS income information to be available for the IRS Data Retrieval Tool for electronic IRS tax return filers, and up to eight weeks for paper IRS tax return filers. Consequently, if your original FAFSA indicated will file, you and/or your parent, if applicable, may need to wait a period of time before you can submit a corrected FAFSA that utilizes the IRS Data Retrieval Tool to retrieve official IRS data. Is everyone eligible to use the IRS Data Retrieval Tool? Unfortunately, no. Individuals (student and/or parent) that have indicated certain filing statuses on the FAFSA will not be able to utilize the IRS Data Retrieval Tool. If a student s FAFSA is selected for verification and he/she and/or parent, if applicable, was not eligible to utilize the IRS Data Retrieval Tool, K State s Office of Student Financial Assistance will ask for specific, alternate documentation to verify income/tax information. 4

5 Six tax filing statuses that make a student or parent, if applicable, ineligible to utilize the IRS Data Retrieval Tool Reason #1 Student or parent, if applicable, is not required to file federal income taxes. Reason #2 Student or parent, if applicable, is married at the time the FAFSA is submitted, but the married couple filed separate tax returns for the federal tax year referenced on the FAFSA. Six tax filing statuses that make a student or parent, if applicable, ineligible to utilize the IRS Data Retrieval Tool (continued) Reason #3 Student or parent, if applicable, is married at the time the FAFSA is submitted, but one individual of the married couple also filed as head of household for the federal tax year referenced on the FAFSA. Reason #4 Student or parent, if applicable, has filed an amended federal tax return for the federal tax year referenced on the FAFSA. 5

6 Six tax filing statuses that make a student or parent, if applicable, ineligible to utilize the IRS Data Retrieval Tool (continued) Reason #5 Student s or parent s, if applicable, marital status at the time the FAFSA was completed differs from the marital status as of the last day (December 31 st ) of the federal tax year referenced on the FAFSA. Reason #6 Student or parent, if applicable, has filed a foreign or Puerto Rican tax return for the federal tax year referenced on the FAFSA. What income/tax information will I need to provide if I or my parent, if applicable, is ineligible to use the IRS Data Retrieval Tool? If your FAFSA was selected for verification and you or your parent, if applicable, are ineligible to utilize the IRS Data Retrieval Tool, K State s Office of Student Financial Assistance will communicate to you what documentation you will need to provide. The type of information will vary depending upon the reason why you or your parent, if applicable, was ineligible to use the IRS Data Retrieval Tool. Consequently, it is important that you check your K State e mail and your To Do List within K State s Student Information System (isis) on a regular basis. 6