Overview
Use this screen to enter information to calculate a worksheet that your client can use to complete the Free Application for Federal Student Aid. The FAFSA worksheet will calculate from the tax return or will print with information entered from a completed tax return.
Notes
- One worksheet should be completed in the parent's return and one in the student's return. If the parent's or student's return was completed elsewhere, a second unit of the FAFSA screen can be added to enter the information from the tax return. If no other tax return will be filed, add a second unit and enter the applicable information.
- This screen will not share information between returns.
- The FAFSA form allows a specific number of digits for the financial information, generally 5 or 6 digits depending on the field. If the data entry exceeds these limits, the number prints on the worksheet in the format requested by FAFSA, generally 99,999 or 999,999.
- The FAFSA (Free Application for Federal Student Aid) form instructions state to use Form 1040 lines 7 + 12 + 18 + Box 14 (Code A) of Schedules K-1 to calculate how much is earned from working. This information seems incorrect when examining how the income earned from work is used in the calculation of the EFC (Expected Family Contribution) Worksheet. The income earned from work is used in Table A2 of the EFC Formula to determine the Social Security tax allowance which is more accurate when using W-2 box 5 + line A.4 or B.6 of Schedule SE to calculate how much is earned from working.
UltraTax CS provides the option to calculate the income earned from work using either method. The default treatment uses the FAFSA form instructions (Form 1040 lines 7 + 12 + 18 + Box 14 (Code A) of Schedules K-1). Select Setup > 1040 Individual > Other Return Options > Other tab, and mark the box for Calculate FAFSA earnings from work per the Expected Family Contribution Worksheet to use that method (W-2 box 5 + line A.4 or B.6 of Schedule SE)
General Information
Use this section to indicate how the FAFSA Worksheet will calculate.
Primary taxpayer identification
Enter 1 if the primary taxpayer on the return is the student's father or stepfather. Enter 2 if the primary taxpayer is the student's mother or stepmother. Enter 3 if the primary taxpayer is the student. Enter 4 if the primary taxpayer is the student's spouse.
Beginning 2016, the FAFSA filing will be October 1 and will use the prior year's tax return information. FAFSA can be filed beginning October 1, and will use the tax return information from two years ago. UltraTax CS will produce a FAFSA Worksheet for the next two school years. Enter 1 to complete the next year's FAFSA. Enter 2 to complete the following year's FAFSA. Up to two FAFSA worksheets calculate, a parent worksheet, and a student worksheet.
The next school year's FAFSA can be filed beginning October 1, using the tax return information from two years ago. For example, if completing a FAFSA for the 2021 - 2022 school year, then tax return information from 2019 will be used.
Worksheet is calculated from return information or entered from another return
This field is applicable only when 2 is entered in the Filing FAFSA for school year field. Select the type of calculation for this worksheet (Calculated or Entered from another tax return). If Calculated is selected, UltraTax CS will use the tax return information to fill out the worksheet. If Entered from another tax return is selected, the amounts entered in the input screen are used to fill out the worksheet.
Enter 1 if the tax return is complete. Enter 2 if the return will be filed but is not yet complete. Enter 3 if the return will not be filed.
Other Information
Use this section to enter information for the FAFSA Worksheet that is not found on the tax return.
Taxpayer and spouse's total current balance of cash, savings and checking accounts
Enter the current balance at the time the worksheet is completed. Do not include student financial aid.
Taxpayer and spouse's net worth in investments…
Enter the current net worth at the time the worksheet is completed. Net worth means current value minus debt. Do not include the primary residence and do not enter an amount less than zero. Investments include trust funds, UGMA and UTMA accounts (for the owner, not the custodian), money market funds, mutual funds, stock options, bonds, other securities, installment and land sale contracts, commodities, etc. Investments also include qualified educational benefits or education savings accounts. Investments do not include the primary residence, value of life insurance, retirement plans, and accounts already reported under the balance of cash, savings and checking accounts. See the FAFSA worksheet instructions for further details.
Taxpayer and spouse's net worth in current businesses and/or investment farms
Enter the current net worth at the time the worksheet is completed. Net worth means current value minus debt. Do not enter an amount less than zero. Business value includes the market value of land, buildings, machinery, equipment, inventory, etc. Business value does not include the value of a small business if the student's family owns and controls more than 50 percent of the business and the business has 100 or fewer full-time or full-time equivalent employees or the value of a family farm that the student and/or the student's parents live on and operate.
Child support paid because of divorce…
Enter the amount of any support paid because of divorce, separation, or as a result of a legal requirement. Don't include support for children in the household.
Taxable earnings from need-based employment programs…
Enter the amount of any taxable earnings from need-based employment programs such as Federal Work-Study, and the need-based employment portions of fellowships and assistantships. This income should also be included in the fields Taxpayer or Spouse earnings from work.
Student grant and scholarship aid included in adjusted gross income
Enter the amount of any student grant and scholarship aid included in adjusted gross income, including AmeriCorps benefits (awards, living allowances and interest accrual payments), as well as grant and scholarship portions of fellowships and assistantships.
Note: This field can be left blank if the FAFSA worksheet is being calculated from the tax return and the only student grant and scholarship aid included in adjusted gross income is entered in the Income screen, in the Other income statement, with a Federal Code of 5.
Veterans noneducation benefits…
Enter the amount of any veterans noneducation benefits, including Disability, Death pension, Dependency and Indemnity Compensation (DIC) and/or VA Educational Work-Study allowances. Do not include veterans educational benefits such as the Montgomery GI Bill, Dependents Education Assistance Program, VA Vocational Rehabilitation Program, VEAP Benefits or Post-911 GI Bill.
Other untaxed income not reported elsewhere…
Enter the amount of any untaxed income not reported already, including worker's compensation, disability, etc. Do not include student aid, earned income credit, additional child tax credit, welfare payments, untaxed Social Security benefits, Supplemental Security Income, Workforce Investment Act educational benefits, on-base military housing or a military housing allowance, combat pay, benefits from flexible spending arrangements, foreign income exclusion or credit for federal tax on special fuels.
Note: This field can be left blank if the FAFSA worksheet is being calculated from the tax return and the only untaxed income not reported already is the health savings account deduction on Form 1040, line 25.
Money received, or paid on your behalf, not reported elsewhere…
Enter the amount of any money received or paid (for example, bills), that is not reported already. Do not include cash support from a dependent student's parents. This question is only applicable for the student section of the FAFSA. Select 3 or 4 in the Primary taxpayer identification field to access this field.
Tax Return Information
Use this section to enter an amount that is different from the amount calculated in the return, or to enter amounts from a tax return that was completed elsewhere. Married filing separate returns will have to sum the appropriate information and enter the totals on one FAFSA screen.
Taxpayer and spouse names and taxpayer identification numbers
Use the attached statement to enter the taxpayer and spouse names and social security numbers if different from the amount calculated in the return, or to enter information from a tax return that was completed elsewhere.
Tax return filed or will be filed (Force)
Enter the type of tax return that was or will be filed. The options are available in the fieldview and are listed in the following table:
| 1 | 1040 |
| 2 | 1040A or 1040EZ |
| 3 | Foreign return |
| 4 | Puerto Rico or other territory |
Tax return filing status
Enter the filing status used on the tax return that was filed or will be filed. If the FAFSA Worksheet is being calculated from information entered in another return, and this field is left blank, the worksheet will display "Don't know" as the response for the line For 2022, what is or will be you/your parents' tax filing status? The options are available in the fieldview and are listed in the following table.
| 1 | Single |
| 2 | Married filing joint |
| 3 | Married filing separate |
| 4 | Head of household |
| 5 | Qualifying widow(er) |
If Form 1040, was the return eligible for Form 1040A or 1040EZ?
Choose Yes if Form 1040A or 1040EZ could have been filed, No if not, or leave it blank if unsure if the return qualified for 1040A or 1040EZ. If Form 1040 was filed only to claim the Hope or Lifetime Learning credit and was otherwise eligible for a 1040A or 1040EZ, answer Yes.
Enter the adjusted gross income from Form 1040 line 37, 1040A line 21 or 1040EZ line 4.
Enter the income tax from Form 1040 line 56, 1040A line 37 or 1040EZ line 10.
Enter the exemptions from Form 1040 line 6d or 1040A line 6d. For 1040EZ, if no boxes are checked on line 5, enter 1 if the taxpayer is single, 2 if the taxpayer is married. If either box on line 5 is checked, use 1040EZ worksheet line F to determine the number of exemptions.
Taxpayer earnings from working (Force)
Answer this question whether or not a tax return was filed. This information may be on Form W-2, Form 1040 lines 7 + 12 + 18 + Box 14 of Schedule K-1 (Form 1065), or 1040A line 7, or 1040EZ line 1. If any individual earning item is negative, do not include that item in the calculation.
Note: The Expected Family Contribution worksheet uses this amount when calculating the Social Security allowance. Choose Setup > 1040 Individual > Other Return Options > Other tab and mark the box for Calculate FAFSA earnings from work per the Expected Family Contribution Worksheet to use that method of calculating earnings from working (W-2 box 5 + line A.4 or B.6 of Schedule SE).
Spouse earnings from working (Force)
Answer this question whether or not a tax return was filed. This information may be on Form W-2, Form 1040 lines 7 + 12 + 18 + Box 14 of Schedule K-1 (Form 1065), or 1040A line 7, or 1040EZ line 1. If any individual earning item is negative, do not include that item in the calculation.
Note: The Expected Family Contribution worksheet uses this amount when calculating the Social Security allowance. Choose Setup > 1040 Individual > Other Return Options > Other tab and mark the box for Calculate FAFSA earnings from work per the Expected Family Contribution Worksheet to use that method of calculating earnings from working (W-2 box 5 + line A.4 or B.6 of Schedule SE).
Enter the amount of any education credits (American Opportunity, Hope and Lifetime Learning tax credits) from Form 1040 line 50 or 1040A line 33.
Enter the amount of combat pay or special combat pay that was taxable and included in adjusted gross income. Do not enter untaxed combat pay reported on the W-2 (Box 12, code Q).
Payments to tax-deferred pension and savings plans…
Enter the amount of any payments to tax-deferred pension and savings plans, whether paid directly or withheld from earnings, including amounts reported on the W-2 (Box 12, codes D, E, F, G, H and S).
IRA deductions and payments to SEP, SIMPLE, Keogh…
Enter the amount of any IRA deductions and payments to self-employed qualified plans from Form 1040 lines 28 + 32, or 1040A line 17.
Enter the amount of tax exempt interest income from Form 1040 or 1040A line 8b.
Untaxed portions of IRA distributions (Force)
Enter the amount of any untaxed portions of IRA distributions. This can be calculated from Form 1040 line 15a minus line 15b or 1040A line 11a minus line 11b. Exclude rollovers.
Untaxed portions of pensions (Force)
Enter the amount of any untaxed portions of pension distributions. This can be calculated from Form 1040 line 16a minus line 16b or 1040A line 12a minus line 12b. Exclude rollovers.
Untaxed portions of health savings accounts (Force)
Enter the amount of any untaxed portions of health savings accounts, which can be found on Form 1040, line 25. This amount will be added to any amounts reported in Other untaxed income not reported elsewhere and will display on the FAFSA Worksheet, Other untaxed income.
Housing, food, and other living allowances…
Enter the amount of allowances paid to members of the military, clergy and others (including cash payments and cash value of benefits). Don't include rent subsidies for low-income housing, the value of on-base military housing or the value of a basic military allowance for housing. The Tax-Free Ministerial Income from the Clergy Worksheet Page 1 - Percentage of Tax-Free Income, line 5b is automatically included.
Note: When no tax return is being filed, the Expected Family Contribution worksheets use the income earned from work figures in place of Adjusted gross income. A clergy housing allowance is included in the income earned from work but is not included in adjusted gross income. When the Status of this return? field is 3 (Will not be filed), the housing allowance calculates as 0 (zero) to avoid counting the allowance twice when calculating total income on the Expected Family Contribution worksheets.
FAQs
What is 1040 for FAFSA? ›
The FAFSA instructs the applicant to add line 1 of the 1040 form to lines 3 and 6 of Schedule 1 and box 14 (code A) of Schedule K-1 (Form 1065) as an option for determining the income earned from work.
Why does 2023 FAFSA ask for 2021 taxes? ›The reasons FAFSA ask for 2021 taxes:
Allows for immediate use of the IRS Data Retrieval Tool to transfer financial information for eligible applicants, Eliminates estimating income and tax information before taxes are filed, Reduces the need to come back and update a FAFSA form after filing taxes, and.
Your Federal Income Tax Return
On the 2023–24 FAFSA form, you (and your parents, if you are a dependent student) will report your 2021 income.
Your Social Security number. Your Alien Registration number (if you're not a U.S. citizen) Your federal income tax returns, W-2s, and other records of money earned (Note: You may be able to transfer your federal tax return information into your FAFSA form using the IRS Data Retrieval Tool)
What happens if I don't have a 1040 form for FAFSA? ›If you or your parents' income is below the minimum amount to file taxes, you can choose the option “Will not file” when you complete the FAFSA. However, you will need to provide any W-2, 1099 or final pay stub received for that specific year.
What is my income 1040? ›This includes your side income, interest income, and other income on top of what you might have earned from wages and tips. All of this income is reported directly on your Form 1040 or Schedule 1. Your total gross income is determined by adding up all types of income that you have received during the calendar/tax year.
What year of taxes does FAFSA ask for the school year of 2023 2024? ›The FAFSA form asks for income and taxes paid according to lines on the IRS tax forms for 2021, the “base year” for 2023-2024. Data from the completed tax year is used as a predictor of the family's financial situation for the current year.
What is the 1040 tax bracket for 2023? ›The 2023 tax year—the return you'll file in 2024—will have the same seven federal income tax brackets as the 2022-2023 season: 10%, 12%, 22%, 24%, 32%, 35% and 37%. Your filing status and taxable income, including wages, will determine the bracket you're in.
Why does FAFSA use taxes from 2 years ago? ›The FAFSA requests family income information from two years prior. This lets families easily use the IRS Data Retrieval Tool on the FAFSA, a resource that quickly pulls in tax information and makes completing the FAFSA much simpler.
What changes for FAFSA 2023 2024? ›Changes to the FAFSA Form
Due to changes in student eligibility for Title IV funding, the 2023-24 FAFSA form no longer contains selective service or drug conviction questions. In addition, students will no longer register for selective service through the FAFSA process.
How much does FAFSA give based on income? ›
The FAFSA formula doesn't expect students or families to use all of their adjusted available income to pay for college. The formula allocates 50 percent of a dependent student's adjusted available income to cover college expenses and anywhere from 22 to 47 percent of parents' available income.
Should I put my parents info on FAFSA if I'm independent? ›If you're a dependent student, you will report your and your parents' information. If you're an independent student, you will report your own information (and, if you're married, your spouse's).
Does FAFSA ask for bank statements? ›What information will I need? To complete the form, you need parents' Social Security numbers, federal income tax returns, W-2s and income records, as well as bank statements and investment records.
How does FAFSA verify taxes? ›During verification, the college financial aid administrator will ask the applicant to supply copies of documentation, such as income tax returns, W-2 statements and 1099 forms, to verify the data that was submitted on the Free Application for Federal Student Aid (FAFSA).
When should I fill out FAFSA for fall 2023? ›2022–23 Academic Year
The FAFSA form must be submitted by 11:59 p.m. Central time (CT) on June 30, 2023. Any corrections or updates must be submitted by 11:59 p.m. CT on Sept. 9, 2023.
Students selected for verification of their FAFSA form may wonder, “Does FAFSA check your bank accounts?” FAFSA does not directly view the student's or parent's bank accounts.
Do students need to file 1040? ›If you make enough money, the Internal Revenue Service will require you to file a tax return. Many college students, who aren't exactly known for their big salaries, might not earn enough to need to. But even those who don't make enough money to be legally required to file might want to send in a return.
Can you file without a 1040? ›The IRS now requires most taxpayers to use Form 1040. However, taxpayers age 65 and up may be able to file using Form 1040-SR.
Is a 1040 the same as a W-2? ›"No, 1040 is not the same as a W-2. W-2 is a form provided by the employer to the employee that states the gross wages in a given year and all the tax withheld and deductions," says Armine Alajian, CPA and founder of the Alajian Group, a company providing accounting services and business management for startups.
What year income is FAFSA based on? ›The FAFSA form asks for income and taxes paid according to lines on the IRS tax forms for 2020, the “base year” for 2022–2023.
What affects FAFSA the most? ›
Income and assets are the some of the primary metrics on which the FAFSA measures your financial need. If your family has a high relative income, you may receive less financial aid than a family with a relatively low income, because the FAFSA will determine that you have a higher expected family contribution (EFC).
Which FAFSA form do I fill out if I graduate in 2023? ›The Free Application for Federal Student Aid (FAFSA®) form you fill out should correspond with the school year you're seeking aid for. For example, if you're applying for financial aid for the 2023‒24 school year, submit the 2023‒24 FAFSA form.
What are the IRS changes for 2023? ›The standard deduction also increased by nearly 7% for 2023, rising to $27,700 for married couples filing jointly, up from $25,900 in 2022. Single filers may claim $13,850, an increase from $12,950.
Why is the IRS adjusting the 2023 tax year brackets? ›The agency adjusted many of its 2023 tax rules to help taxpayers avoid "bracket creep." That's when workers get pushed into higher tax brackets due to the impact of cost-of-living adjustments to offset inflation, despite their standard of living not having changed.
How much can a 70 year old earn without paying taxes? ›Basically, if you're 65 or older, you have to file a tax return in 2022 if your gross income is $14,700 or higher. If you're married filing jointly and both 65 or older, that amount is $28,700. If you're married filing jointly and only one of you is 65 or older, that amount is $27,300.
What tax year does FAFSA use for 2024 2025? ›Here's what many families are not aware of: the FAFSA is based on the year before the year before the year. Let's break that down. The 2024-2025 academic school year will be based on the 2022 tax filing.
Is FAFSA changing for 2024? ›The FAFSA Simplification Act will expand the Federal Pell Grant to more students and will link eligibility to family size and the federal poverty level (starting with the 2024–25 award year).
What happens if you use the wrong tax year on FAFSA? ›If you filed for the wrong year, then you'll need to submit a new FAFSA form for the correct award year to be eligible for federal student aid.
What is the maximum FAFSA amount for 2023 2024? ›The maximum Federal Pell Grant for the 2023–24 award year (July 1, 2023, through June 30, 2024) is $7,395. The amount an individual student may receive depends on a number of factors. Learn more via the links below: Learn what factors go into determining the amount of Pell Grant funding a student receives.
How many questions are on the 2023 2024 FAFSA? ›2022-2023 FAFSA Updates
The application will only have, at most, 36 questions, down from 108. The Student Aid Index (SAI) is being replaced with the Expected Family Contribution (EFC), which will help students and their families make better sense of their award letters.
What color is 2023 2024 FAFSA? ›
Blue (2022-2023) Yellow (2023-2024) Orange (2024-2025) Green (2025-2026)
What disqualifies you from FAFSA? ›Incarceration, misdemeanors, arrests, and more serious crimes can all affect a student's aid. Smaller offenses won't necessarily cut off a student from all aid, but it will limit the programs they qualify for as well as the amount of aid they could receive. Larger offenses can disqualify a student entirely.
What is the maximum parent income to qualify for FAFSA? ›There is no income cut-off to qualify for federal student aid. Many factors—such as the size of your family and your year in school—are taken into account.
Can you get financial aid if your parents make 100k? ›You may have heard the myth that if your family earns a certain amount of money, then you might not be eligible for student aid. But here's the truth: There's no FAFSA income limit, and it's possible to receive financial aid regardless of your family's income level.
When can I stop using my parents income on FAFSA? ›You can only qualify as an independent student on the FAFSA if you are at least 24 years of age, married, on active duty in the U.S. Armed Forces, financially supporting dependent children, an orphan (both parents deceased), a ward of the court, or an emancipated minor.
Does parents income affect FAFSA? ›If you are a dependent student, include your and your parents' or guardians' untaxed and taxed income on the FAFSA, along with other information such as their assets and benefits. Independent students shouldn't include anyone else's financial information on the FAFSA, unless they're married.
What if my parents refuse to pay for college? ›If your parents or guardians refuse to pay for college, your best options may be to file the FAFSA as an independent. Independent filers are not required to include information about their parents' income or assets. As a result, your EFC will be very low and you will probably get a generous financial aid offer.
Do students file 1040? ›According to the IRS, if you are a dependent who is unmarried, under 65 and not blind, you must file a tax return if: Your unearned income (which includes taxable interest, capital gain distributions, unemployment compensation and taxable Social Security benefits) was more than $1,150.
Where can I find Box 14 Code A on 1040? ›This information may be found on the W-2 forms or by adding up the following items: IRS Form 1040—line 1 (or IRS Form 1040-NR – line 1a) + Schedule 1—lines 3 + 6 + Schedule K-1 (IRS Form 1065)—Box 14 (Code A). If a tax form line's value is negative, treat it as a zero in your calculation.
Why does FAFSA use 2 year old taxes? ›The FAFSA requests family income information from two years prior. This lets families easily use the IRS Data Retrieval Tool on the FAFSA, a resource that quickly pulls in tax information and makes completing the FAFSA much simpler.