Posted Date: June 6, 2018

Author:  Federal Student Aid

Subject: 2018-2019 FAFSA Verification-IRS Tax Return Transcript Matrix

Attached to this Electronic Announcement is the 2018-2019 FAFSA Verification-IRS Tax Return Transcript Matrix that institutions can use for 2018-2019 verification of tax return information.  Since there has been no changes to FAFSA questions as it relates to IRS tax form line items, this tax matrix is the same as the matrix provided for the 2017-2018 FAFSA, except that the matrix now refers to the 2018-2019 FAFSA.

Since the IRS Tax Return Transcript does not have line or item numbers and uses wording that may be different from what is used on the FAFSA, the matrix will help financial aid administrators map 2016 IRS Tax Return Transcript information to FAFSA/ISIR data. The first column of the matrix lists the seven 2018-2019 FAFSA information items that, consistent with the May 5, 2017 Federal Register notice and the Dear Colleague Letter GEN-17-05 posted on May 25, 2017, may need to be verified for a student or parent who indicated that they did or will file a 2016 IRS tax return.

The second column displays the student FAFSA question number for each item followed by the parent FAFSA question number. The third column displays the student ISIR item number followed by the parent ISIR item number.  ISIR numbers are from the 2018-2019 Electronic Data Exchange (EDE) Technical Reference. The fourth column of the matrix is the item name as displayed on the IRS Tax Return Transcript.  Note that for some items the transcript may display two or three values for an item. If only one value is displayed on the transcript, that value must be used for verification.  If more than one value is displayed on the transcript, the value associated with the item name that includes the words “Per Computer” must be used for verification.  The “Per Computer” line should be used for verification even if it is different than what was reported by the tax filer. In addition, a line may appear on some IRS Tax Return Transcripts that says “RECOMPUTED <tax return item name> PER COMPUTER”.  The amount on this line should be ignored for purposes of verification. The last three columns show the corresponding line item numbers from the three 2016 IRS tax returns (IRS Form 1040, IRS Form 1040A, and IRS Form 1040EZ).

Under provisions of the Higher Education Act (HEA), taxes and credits related to the Affordable Care Act (ACA) are not to be included in the amount of U.S. Taxes Paid that are used in the calculation of a student’s expected family contribution (EFC). 

Attachments/Enclosures:

2018-2019 FAFSA Verification-IRS Tax Return Transcript Matrix

   

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