FAFSA Timing Question

[goldberry]

DD will be a senior in the fall.  If she applies to colleges in the fall, we would use 2015 tax figures, is that correct?  Then after January 1st, we have to update the information with 2016 figures?  We typically owe money and don't do the taxes until the last minute.  Is that going to hurt us?  Are we going to have to rush to do the 2016 taxes?

[AK_Mom4]

Senior in the fall means she won't start college until Fall 2017?

 

For Fall 2017, the FAFSA for 2017-2018 will become available online in January 2017.   If you have not filed your 2016 taxes by the time you fill it out, then yes you would use the 2015 numbers as "estimated" numbers.  You then file a correction after you file your taxes and have real numbers.

 

We have not found it to be a disadvantage to use previous year's numbers because our income is pretty steady year-to-year.  If you had a big change in income that would make your DD more eligible for financial aid, then I would hurry up and file the 2016 taxes to take advantage of the change.

[JeanM]

Actually my understanding is that the FAFSA is changing. My ds is also going to be applying to colleges in the fall. The way I read it, for his class the FAFSA will be available in October 2016 (as opposed to January), and will use "prior prior year taxes." So for his freshman year of college, the FAFSA will be based on 2015 taxes, which are due shortly.

[goldberry]

Actually my understanding is that the FAFSA is changing. My ds is also going to be applying to colleges in the fall. The way I read it, for his class the FAFSA will be available in October 2016 (as opposed to January), and will use "prior prior year taxes." So for his freshman year of college, the FAFSA will be based on 2015 taxes, which are due shortly.

 

 

You're right!  I found this...

https://studentaid.ed.gov/sa/about/announcements/fafsa-changes

[G5052]

DS's college just sent him a message that either we have to use the IRS Data Retrieval Tool or provide a copy of our 2015 return, or he won't be eligible for the first round of aid. The deadline is May 1st. I knew that they were headed this way, but SIGH. Thankfully I just got our return in, but we'll have to get them copies because the retrieval likely won't be ready in time.

 

The letter was "no excuses," so I feel sorry for those with complicated taxes who can't get it done in time. Apparently later applicants will of course still have access to some of the federal programs and a second-round chance, but apparently the better institutional scholarships usually are gone by then.

 

I'm looking forward to 2017-2018 when we can use 2015!

Edited April 7, 2016 by G5052