FAFSA & Your U.S. Tax Return – What You Need to Know
Congrats! Little Janie and Johnny are off to college, you did your job. But – college isn’t free and your young scholars may need some assistance to pay for their degrees of higher learning.
Along with scholarships and other merit based programs, the Federal Government helps to pay for college via FAFSA (Free Application for Federal Student Aid). In order to file the application to help the young whippersnappers pay for school, you must provide information from your U.S tax return.
2016-17 or 2017-18 FAFSA – Use Data From 2015 U.S. Tax Return
When completing a 2016/17 or 2017/18 FAFSA application, use information from 2015 U.S. tax return.
- If you will attend college from July 1, 2016-June 30, 2017, you should submit the 2016-2017 FAFSA. You will use income and tax information from 2015.
- If you will attend college from July 1, 2017-June 30, 2018, you should submit the 2017-2018 FAFSA. You will use income and tax information from 2015.
Note: Both the 2016-2017 and 2017-2018 FAFSAs ask for 2015 tax information.
How Do I Account for 529 Plans on FAFSA?
When completing the ‘net worth investments’ section as a parent, if you have one or more education savings accounts (ie – 529 Plan) – report that plan for every dependent child you have, even if some of those dependent children are not currently completing a FAFSA. Ie – if Jackie is 17 and headed to college, but little Jimmy is only 6 years old but has a 529 plan, report them both under the parents’ net worth investments.
Whole Story at TFX.