<p>Is everyone sure that we have to correct the FAFSA once the 2005 income tax returns are in? Don't colleges know that we are estimating with the 2004s? Why would they make us fill the FAFSA out twice, basically?</p>
<p>When you fill out using estimated numbers, you answer a question to that effect-- that you're estimating, that your '05 taxes aren't done yet, and that you plan to file your taxes later.</p>
<p>That flags your FAFSA as an estimate to the colleges. In our case (and I believe in most or all cases), the colleges provided financial aid estimates based on the FAFSA estimate, so you can make your college selection. Then, before the college finalizes your financial aid offer, they require you to complete the FAFSA with the information indicating that you've filed your '05 taxes and that the numbers match your tax returns. In some cases, they will ask you to provide the tax returns themselves.</p>
<p>(and it's not like you're filling it out twice-- you just go online and change a few numbers and resubmit. Takes 5 minutes, maybe)</p>
<p>what if the '05 and '04 numbers differ significantly?</p>
<p>then even more reason to have correct information to the schools</p>
<p>If you expect your '05 numbers to differ significantly from your '04 numbers, you should probably write the colleges explaining why you believe they will differ and ask them how it will affect your financial aid offer.</p>
<p>I believe in some cases you can submit tax forms and W-2 to schools and they will make adjustments themselves. Once you submit FAFSA get familiar real well with your school FA office and communicate all your questions with them. It is especially relevant for small schools where you are not a SS number .</p>
<p>Our FAFSA was corrected by +$2.00 (yes, two dollars). I double checked my inputs and discovered my error... Our tax remained the same but the AGI adjusted by +$2; Yes, I missed an interest debit from our bank. We also have to submit complete tax forms for kid and ourselves, yearly, plus W2s. We are 100% EFC and only file fafsa to qualify for *un*subsidized loan status-of which we are first denied subsidized status then a couple of weeks later, notified that we qualified for UNsubsidized status. Why the steps is beyond me. </p>
<p>Got a nice letter from DoE saying that the FAFSA was corrected. But nothing from the IRS.</p>
<p>conclusions: Government-IRS and schools have ways not entirely transparent to us. Don't cheat the system! Also subsequent FAFSA filings must be done early enough so that the money from loans will hit the school prior the their penalty date.</p>
<p>you have to watch those small interest payments- I totally missed a small account the difference was $13 of interest that we didn't claim- not even tax that was owed, and 3 years later the IRS sent a letter saying that we owed fines and interest on the $13.
so my grandmas saying is true"watch the pennies and the dollars will watch themselves" I guess I should add if you don't watch the pennies they will add up & you will owe them to the IRS!</p>
<p>^ And they will no longer be pennies at that. You really have to be careful! Don't be afraid to talk to schools' FA departments, they are there to help.</p>