The is Department of Internal Revenue Created a tool to help students and parents who have filed a tax return to verify the information needed to fill out Free Application for Federal Student Aid (FAFSA) appearance.
It is not limited to IRS Data Recovery Tool (IRS DRT) Allowing taxpayers to access the information, but also helping them pass the data directly to their FAFSA form.
“The IRS DRT allows you to securely transfer the original IRS tax return information, but not the modified tax return information on Form 1040X,” the IRS website reads.
“If you file an amended tax return on Form 1040X, you may need to work with the financial aid officer at your college or vocational school to make sure that any information you corrected on Form 1040X is reflected in the amounts transferred to your FAFSA form.”
The IRS DRT is the easiest way to obtain tax information and ensure that your FAFSA form includes all the required data. With the tool, it means that you will not be required to submit a copy of your parents’ tax returns to your college.
According to retail banking firm Sallie Mae, 70 percent of families completed the FAFSA last year and about 72 percent are expected to do so this year.
“Given the uncertainty in the economy right now around inflation and fears of a recession, it’s understandable that some families are feeling the impact of paying college and reconsidering applying for federal aid,” Rich Finn, vice president of Discover Student Loans, told CNBC. .
Who is Eligible for a FAFSA?
To be eligible for Federal Student Aid, you must be a US citizen or eligible noncitizen, demonstrate financial need for need-based Federal Student Aid schemes and be either enrolled or accepted to enroll in an eligible degree. Non-citizens who hold a permanent resident green card are considered eligible.
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