Summer is quickly flying by and the 2019-2020 school year fast approaches! Students who need to file the 2019 FAFSA will need to use their income from their or their parents 2017 Federal Tax Return.
Filing FAFSA and Reporting Taxes
The IRS reminds people that there are multiple ways to access the 2017 tax return: use the IRS Data Retrieval Tool, contact the provider who filed your 2017 return, or get a tax transcript online or via the mail. If you are retrieving data from the IRS, you may be required to supply additional paperwork with a student loan provider. Check with www.studentaid.gov or with your bank.
Keep a Copy of Tax Records
This is a good time to have a reminder that you should keep an electronic copy of your tax records and have it accessible. Besides making FAFSA filing easier, tax records are necessary for accounting, proof of income, and in the worst-case scenario of a tax audit.
If you do not have a record, check with your tax preparer to find out if they have a record of your tax return for that year.
At Little Giant Tax Services, we help people track their finances and get the best returns in order to help their children go to college. If your taxes and FAFSA is too confusing, stop by an office during our office hours and we can help you walk through it.