1040 Form – How to File your FAFSA before your Federal Tax Return

Did you know you are not required to complete your IRS federal tax return before filing your FAFSA? It is a common misnomer that it is required when it is simply encouraged. However, there will be a question on the FAFSA about which IRS Tax Form you will fill out in the future, if you haven’t already, and that is where the 1040 Form comes up.

Why you should fill out the 1040 while preparing your FAFSA form:

Having your federal tax return complete will save you a lot of time when filling out your FAFSA. However, some of you will want to file your FAFSA form earlier than you are able to complete your IRS federal tax return. In some cases, federal aid, grants and scholarships are awarded on a first-come, first-served basis and you’ll want to get the ball rolling early in January before you receive your income reports from the previous year.

So what are your options? You can fill out a 1040 form using estimated income amounts, either using your previous year’s tax return or your current pay stubs. You are allowed to report estimated tax data on your FAFSA, as long as you correct the estimates once you finish your taxes.

What is the 1040? Well, it is actually your Federal Income Tax Return form. There are a few different versions of this form and it is important to determine which you will be filing. The FAFSA-on-the-web application will populate other parts of the form for you based on qualifications you would have in order to file the specific types of federal return.  This should help guide you:

To qualify for the 1040EZ:

Your total income is under $100,000Your interest income is under $1,500You have income only from wages, interest, unemployment compensation, and Alaska Permanent Fund dividendsYou and your spouse are under 65 years oldYour filing status is single or married filing jointly.You do not have any adjustments to incomeYou are claiming only the standard deductionYou may claim the Earned Income CreditYou are not claiming any other tax credits

If you meet all of these conditions, you are eligible to file the 1040EZ, and you will note this on your FAFSA. Most students are eligible to file the 1040EZ.

To qualify for the 1040A:

Your total income is under $100,000Any age, any filing statusYou have income from wages, interest, dividends, capital gain distributions, IRA or pension distributions, unemployment compensation, or Social Security benefitsYou can claim the following adjustments to income: penalty for early withdrawal of savings, IRA contributions, student loan interest, and jury duty pay given to your employerYou can claim the following tax credits: Child and dependent care credit, Credit for the elderly and disabled, Education credits, Retirement savings contributions credit, Child tax credit, and Earned income credit.

Completing one of the 1040 tax forms will give you a better idea of what adjustments can be made to your income, such as tuition and fees deductions and student loan interest. And you’ll be a step ahead on filing your federal taxes when you are able to.

Filing your taxes online? Most tax software will determine for you which form you are to file, and then you may note that on your FAFSA. In addition, part of preparing for the FAFSA is gathering your tax and financial information – so you’ll need to complete that anyway!

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Appealing your FAFSA Dependency Status

One of the most common issues students deal with revolves around the FAFSA filing status. Many students feel they should be considered independent, yet the FAFSA still requires them to file as dependent. Under special circumstances, students have the ability to appeal their dependency status. For those students who believe their circumstances qualify them for financial independence (for FAFSA purposes), I’m going to walk you through how to do this, including what documents you may need. If you don’t know your current status, read our post on Dependent VS. Independent Status.

First thing’s first, if your sole reason for filing an appeal is that you support yourself or that your parents refuse to support your education, then you will not qualify for an appeal. However, other circumstances are considered. Some common reasons for appealing dependency include:

AbandonmentDanger of physical or mental abuseYour parents (or parent for single parent family) are incarceratedYour supporting parent is deceased and you have no contact with the other

Keep in mind, these are not the only reasons that are accepted as schools differ in their requirements. If you’re not sure if your particular situation qualifies, you should contact a financial aid officer from your school.

Each school has specific guidelines for the appeals process, and in some cases, there are school-specific forms you will need to fill out. Most of the time you can find the qualifications and forms on the school’s website. However, the one thing that most schools ask for is a letter from the student explaining their circumstances. In this letter, make sure to be specific! After all, you’re arguing your case, so the more information you provide, the better. Included in this letter should be 1) why your parents aren’t helping 2) information regarding your income and what your money is allotted for and 3) your educational goals, explaining why more money is necessary to achieve them through your institution. Each situation is different, so tailor the letter to you and what your needs are. Along with this letter, it is important to provide as much documentation as possible to back up your claim. Acceptable documentation includes (but is not limited to):

Letters attesting to a student’s situation: Most schools require students to submit letters from independent sources. These can be from almost anyone who knows your story- ministers, friends, non-parental relatives, guidance counselors, attourneys etc. These letters should explain the writer’s relationship to the student, and like the student’s letter, provide as much detail as possible about the student’s situation. Depending on school guidelines, these may need to be notarized.Bank statementsW2sCourt documents/ police reportsDocumentation of parental incarcerationDeath certificates

Once all of your required documents have been submitted, all you can do is wait. Depending on your school, your appeal will be reviewed by a financial aid officer or panel of officers who will work with the Department of Education to change your status (hopefully). It is possible that more documentation may be required, and if this is the case, you will be contacted. If you do need to provide more, don’t panic! Simply provide the requested documents and wait it out. Note: If you are approved for a certain year, this does not mean that you are approved for upcoming years as well. For future academic years, you will need to appeal again!

Navigating the FAFSA to get adequate financial aid can be a nightmare for some students, so appealing dependency status may be the difference between going to school or not. If you have any specific questions about your school’s process, they should be directed to your financial aid office. Good luck!

View the original article here

FAFSA 2011-2012 Summary of Changes

As many of you may know, the 2011-2012 Free Application for Federal Student Aid (FAFSA) will be available on January 1, 2011. In order to be prepared for this day, it is important that students, parents and financial aid officers become acquainted with the most recent changes.

The National Association of Student Financial Aid Administrators (NASFAA) recently released their “Summary of Changes” for the 2011-2012 FAFSA. This document covers everything from changes in design to changes in the way questions are worded. Whether you are a student filing the FAFSA for the first time, or a seasoned financial aid professional, this information will help you approach this year’s FAFSA with the right information.

Summary of Changes, 2011-2012 Free Application for Federal Student Aid (FAFSA)

Colors – The colors are yellow for student information and purple for parent information

Elements added – New question #27 is added, for applicants who indicate they have earned a high school diploma. The question is worded as follows: What is the name of the high school where you received or will receive your high school diploma? Write in the high school name, and the city and state where the high school is located.

Elements deleted – Enrollment status questions (formerly, #30) has been removed.  The question about plans to become a teacher (a.k.a. the TEACH grant question, formerly #32) has been removed.

Other changes – State Deadlines have been updated on the FAFSA application.  The new deadlines will be available on FAFSAOnline.com on December 30, 2011.  Deadlines have changes this year for Kentucky, New York, Oklahoma, South Carolina, and Tennessee.  The post office box for mailing a FAFSA has been updated.

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When are the 2011 2012 FAFSA Deadlines?

It’s January, 2011. So, what does that mean?  Well, for starters, Happy New Year!  I’m sure many of you have been thinking about your plans for the upcoming year, maybe even jotting down some of those resolutions.  There are two in particular that we might have in common: go back to school or finish up school, and save money.

Well, with that in mind, the team at FAFSAOnline.com has been working diligently to bring you the most current and most beneficial information about the new FAFSA form for the 2011-2012 school year.  If you’re not familiar with the FAFSA already, it is the Financial Application for Federal Student Aid and the first step in your financial aid process.  Federal grants and loans are the best source for financial aid, and private student loans can fill in the gaps.

We have recently updated the FAFSA deadlines pages for both federal deadlines and state deadlines.

The new FAFSA form was released this past week.  FAFSAOnline provides you with a free guide and eBook for help with the FAFSA form.  There are also a number of special financial aid tips we share, that can help you maximize your aid and avoid common mistakes on your FAFSA form.  You can also go to FAFSAOnline to get your Federal School Code, which you will need to identify the school(s) you are attending or applying to.

Stay tuned for a brand new 2011 eBook for the FAFSA form.

View the original article here

Appealing your FAFSA Dependency Status

One of the most common issues students deal with revolves around the FAFSA filing status. Many students feel they should be considered independent, yet the FAFSA still requires them to file as dependent. Under special circumstances, students have the ability to appeal their dependency status. For those students who believe their circumstances qualify them for financial independence (for FAFSA purposes), I’m going to walk you through how to do this, including what documents you may need. If you don’t know your current status, read our post on Dependent VS. Independent Status.

First thing’s first, if your sole reason for filing an appeal is that you support yourself or that your parents refuse to support your education, then you will not qualify for an appeal. However, other circumstances are considered. Some common reasons for appealing dependency include:
AbandonmentDanger of physical or mental abuseYour parents (or parent for single parent family) are incarceratedYour supporting parent is deceased and you have no contact with the other
Keep in mind, these are not the only reasons that are accepted as schools differ in their requirements. If you’re not sure if your particular situation qualifies, you should contact a financial aid officer from your school.
Each school has specific guidelines for the appeals process, and in some cases, there are school-specific forms you will need to fill out. Most of the time you can find the qualifications and forms on the school’s website. However, the one thing that most schools ask for is a letter from the student explaining their circumstances. In this letter, make sure to be specific! After all, you’re arguing your case, so the more information you provide, the better. Included in this letter should be 1) why your parents aren’t helping 2) information regarding your income and what your money is allotted for and 3) your educational goals, explaining why more money is necessary to achieve them through your institution. Each situation is different, so tailor the letter to you and what your needs are. Along with this letter, it is important to provide as much documentation as possible to back up your claim. Acceptable documentation includes (but is not limited to):
Letters attesting to a student’s situation: Most schools require students to submit letters from independent sources. These can be from almost anyone who knows your story- ministers, friends, non-parental relatives, guidance counselors, attourneys etc. These letters should explain the writer’s relationship to the student, and like the student’s letter, provide as much detail as possible about the student’s situation. Depending on school guidelines, these may need to be notarized.Bank statementsW2sCourt documents/ police reportsDocumentation of parental incarcerationDeath certificates
Once all of your required documents have been submitted, all you can do is wait. Depending on your school, your appeal will be reviewed by a financial aid officer or panel of officers who will work with the Department of Education to change your status (hopefully). It is possible that more documentation may be required, and if this is the case, you will be contacted. If you do need to provide more, don’t panic! Simply provide the requested documents and wait it out. Note: If you are approved for a certain year, this does not mean that you are approved for upcoming years as well. For future academic years, you will need to appeal again!
Navigating the FAFSA to get adequate financial aid can be a nightmare for some students, so appealing dependency status may be the difference between going to school or not. If you have any specific questions about your school’s process, they should be directed to your financial aid office. Good luck!
View the original article here

Running Out of Time for the FAFSA

Posted in FAFSA, The Financial Aid Process tagged FAFSA, fafsa online, financial aid application at 3:33 pm by plusloans
Attention parents! Today marks March 5, and school financial aid deadlines are here, or very close. The majority of schools require all paperwork to be in during this month in order to fairly distribute financial aid and have plenty of time to assemble students’ award packages.
So, what can you do to make sure it all goes smoothly?
1. Make sure your taxes are filed.
This may be a “what?” moment if you are new to the FAFSA process and/or this blog, but in order for your child or ward to file their FAFSA, they need information from you. Specifically, they need your Annual Gross Income figure from your 1040 or 1040EZ form.
If you are the type to hold off on filing taxes until April’s cutoff date, you are putting the student in a diminished position to get the maximum amount of aid possible for the upcoming school year. If you absolutely must hold off, have them file with the previous year’s numbers and then submit an amended FAFSA as soon as your taxes are complete. You can find all the relevant forms and processes on FAFSAOnline.com.
2. Gently, but firmly remind your child.
Nobody likes paperwork. However, if you and your family need aid money from the government or school to pay for your child’s education, you can’t afford to let the FAFSA sit on the back burner. If necessary, you should put a day on your calendar (in the very near future) to sit down with them and help them complete it; this will ensure it gets done, and is filled out correctly.
If you need any advice, or would like to know more about how the FAFSA works, check out the FAFSAOnline.com blog for lots of relevant and interesting posts.
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A Parent’s FAFSA Checklist

Posted in FAFSA tagged a parent's FAFSA checklist, Parents role in financial aid at 4:14 pm by plusloans
As a parent in the midst of FAFSA season you are probably wondering what your role in the financial aid process should be. Here is a quick checklist to make sure you are on the right track:
Obtain your own FAFSA PIN number at www.pin.ed.gov. Your PIN will act as your electronic signature on your child’s online FAFSA.File your taxes as early as possible, but do not delay the FAFSA due to your taxes not being done. You can estimate your financial information on the FAFSA, but you will have to finalize it later.Help your child complete everything on their “to do” list.File the FAFSA online- it is much easier and faster and your information is 100% safe.Examine the bill from the school your child chooses and make she you understand all of the fees and how they will be paid.Permalink Be the first to like this post.
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