Changes to Federal Tax Forms From 2017 Tax Changes Impacts Preparation of Free Application for Federal Student Aid (FAFSA)
Beginning October 1, 2019, applicants will be able to file for the 2020-2021 FAFSA using information from your 2018 tax return. In previous years the IRS Data Retrieval Tool would be able to import data from the parent & student Federal Income tax return. The new 1040 form eliminated the existing IRS forms 1040A and 1040EZ and added a set of schedules, for those tax returns requiring more information. As usual, the left hand doesn’t talk to the right hand. So, the changes to the tax forms have not been incorporated into the FAFSA application and Data Retrieval Tool. This creates confusion and new questions on the 2020-2021 FAFSA process, that if answered incorrectly may affect the Expected Family Contribution (EFC) and therefore the amount of aid the family may receive.
If you would like more information on this issue or help in preparing your FAFSA for next year give us a call at 973-771-5120