EFC formula 2020/21 released

[cshell2]

@mommdc

Simplified Needs Test

For the 2020–2021 Award Year, a dependent student qualifies for the simplified EFC formula if both (1), below, and (2), on the next page, are true:
(1) Anyone included in the parents’ household size (as defined on the FAFSA) received
benefits during 2018 or 2019 from any of the designated means-tested federal benefit
programs: the Medicaid Program, the Supplemental Security Income (SSI) Program, the
Supplemental Nutrition Assistance Program (SNAP), the Free and Reduced Price School
Lunch Program, the Temporary Assistance for Needy Families (TANF) Program1
, and the
Special Supplemental Nutrition Program for Women, Infants, and Children (WIC);
OR
the student’s parents:
• filed a 2018 IRS Form 1040, but did not file a Schedule 12
,
• filed a tax form from a Trust Territory3
, or
• were not required to file any income tax return;
OR
the student’s parent is a dislocated worker
AND
(2) The combined 2018 income of the student’s parents is $49,999 or less.
• For tax filers, use the parents’ adjusted gross income from the tax return to determine
if income is $49,999 or less.
• For non-tax filers, use the income shown on the 2018 W-2 forms of both parents (plus
any other earnings from work not included on the W-2s) to determine if income is
$49,999 or less.

That should say Schedule 1, not 12.

Also there are exclusions. If you only file schedule 1 for capital gains, unemployment compensation, Alaska Permanent Fund dividends, educator expenses, IRA deductions, or student loan interest deductions, then you answer the FAFSA question as “No” that asks if you filed a schedule 1.