<p>Do you know? If you and your parents file 1040ez or 1040a or not required to file or received federal benefits like SSI, free lunch program and AGI is less than 24,000, you get an automatic zero EFC. And AGI is less than 50,000, your asset is not calculated on the EFC. If you got specific questions on how FAFSA calculates EFC, ask on this thread or google it on the net.</p>
<p>Another note, most schools requires you to update your FAFSA after filing your taxes with the IRS data retrieval tool. It takes about two weeks after you e-file to use the tool. It could take 4-8 weeks after you file through snail mail to use the tool. So e-filing your taxes is recommended or you will be waiting a while before you can finalize your FAFSA. This becomes an issue if you file in late march/april.</p>
<p>This is a good general thread. </p>
<p>One other good to know is that if student or parents owe an additional payment with their federal return, pay it right away. The Data Retrieval Tool and tax transcripts aren’t available until after the IRS receives your payment. Many reported that experience here on CC last year.</p>
<p>This is a link to the fafsa formula worksheet:</p>
<p><a href=“http://ifap.ed.gov/efcformulaguide/attachments/091312EFCFormulaGuide1314.pdf[/url]”>http://ifap.ed.gov/efcformulaguide/attachments/091312EFCFormulaGuide1314.pdf</a></p>
<p>
</p>
<p>That’s not accurate.</p>
<p>First, the only data we have is from last year (the first year that the data retrieval tool was available), and this year may not be the same.</p>
<p>Second, the only thing that happened last year for payments not received was that processing of the return was delayed until early May. So, even if payment was still owing, the return was processed in early May and the data retrieval took was available shortly thereafter.</p>
<p>The priority seemed to be that taxpayers owed refunds had their returns processed first, taxpayers who paid in full (but were not owed refunds) had their returns processed second, and returns submitted without payment in full were processed last (in early May).</p>
<p>So, yes, if processing this year is the same (no guarantee!), it speeds things up if payment (or overpayment) is submitted with the return . . . but it’s not the kiss of death if you still owe money. It just slows things down.</p>
<p>I suppose it could change this year but I doubt it. This is dependent on IRS procedures, not fafsa procedures.</p>
<p>There were many threads and many posts on CC about this last year. Many posters called the IRS and got conflicting answers, some along the lines of your scenario and some along the lines of our experience.</p>
<p>Last year my son filed in early February, owed money and didn’t send in payment. Having been chosen for verification, I tried the retrieval tool and tax transcript ordering a couple weeks later and they didn’t work. When I read about the payment issue on CC, he sent in his payment in late February and the retrieval tool and transcript ordering was available around March 10.</p>
<p>Either way it’s still a problem when a school has a deadline before May, especially if you’ve been chosen for verification.</p>
<p>My understanding is that the IRS data retrieval tool will not be available to the college IF there are taxes owed that have not been paid. A number of folks here have noted that IF you owe the IRS, you should pay the bill ASAP…to prevent issues with the processing and disbursement of aid.</p>
<p>HELP!!!
- Since the IRS Data Retrieval Tool won’t be available until Feb 3rd, does it make sense to file the FAFSA now, using guestimates for 2012 income, if our tax appointment is right around the same time the tool becomes available? (early Feb)
- My H is self employed, files the long form and has kind of a complicated tax return. The IRS software for the long form won’t be available until Feb1.
- Is it really worth using the 2011 tax return to estimate, if we expect 2012 income to be much less? Do we risk losing financial aid, if 2012 is much less than 2011?
- We keep hearing to file as early as possible to get as much aid as possible, but since we’ve never done this, I am wondering if it’s better to just use 2011 tax return for now OR try to guestimate 2012 OR just wait until early Feb and do it all once? This just seems like a big pain to do now and then turn around and do it again…What will happen if our guestimate is way off?<br>
- What is your best advice??? HELP!!! Thanks!</p>
<p>I seriously doubt the retrieval tool will be available by February 3rd. The IRS won’t start processing any returns until January 21st, and they are estimating 21 days before you can expect your refunds (as opposed to the previously promised 8-15 days). That estimate is only there is nothing questionable that might hold things up.</p>
<p>Add to that the issue that some tax forms have not been updated yet, due to extenders from the fiscal cliff negotiations. Last year it was the middle of February before schedule A could be filed, and that was without such late passage of tax law changes. For anyone with younger children, the child tax credit was changed back to $1000, so we have to wait for that form as well.</p>
<p>As to whether the IRS will release the information before the tax obligation is paid, that is anyone’s guess. A few years ago, when they pushed banking regulators to crack down on refund anticipation loans, the IRS argued that there would be little need for them, because they expected the turnaround between filing and getting your refund to shrink. I wouldn’t count on any timetables this year.</p>
<p>Jan 30 2013</p>
<p>From Internet
</p>
<p>This is some good information!</p>
<p>4kidsdad- Actually, your post took some pressure off me for just a moment. I have been feeling so overwhelmed. Between acceptance letters, school questions and research, post holiday catch up and now FAFSA, I feel like I am juggling too many balls and they are all important. And I am usually a good juggler.</p>