<p>On FAFSA, since we haven't got our tax return back, I can only provide estimated numbers at this time. How would I be able to change that to exact numbers when I get them?</p>
<p>A couple weeks after the tax returns are filed, go back to the FAFSA & update it. Change “will file” to “already filed.” You will be offered the option to link directly to the IRS website to have the information transferred to your FAFSA. Do this … it is definitely the best way to update the tax info.</p>
<p>Fill wtih estimated numbers as a “Will File” status. Once you have done your taxes, refile and update the tax return numbers only, not the assets.</p>
<p>okay thanks a lot for the quick replies! i appreciate it.</p>
<p>So I have 2 FAFSA questions. I filled it out based on 2010 tax return. 2011’s numbers will be about the same. If the EFC is fairly high, is it really necessary to update with 2011’s exact numbers? And secondly, will I have to furnish my 2011 tax returns, automatically, or only if they ask?</p>
<p>Yes, you must update with 2011 numbers and you must furnish your 2011 tax returns if asked for verification.</p>
<p>Don’t send in paper copies of your returns unless they’re requested.</p>
<p>ok, thanks.</p>
<p>If you link electronically to the IRS retrieval site & download the tax info a couple weeks after it is submitted, you may not even have to send the tax returns if selected for verification.</p>
<p>I think I screwed up FAFSA because my EFC was 62,000 and my family income is only like 110,000 + 40,000 in mutual funds so i dont know how it could be so high. is there anyway i could review my fafsa</p>
<p>If your mutual funds are in an IRA or 401 K, you should not include them</p>
<p>I would expect an EFC of around $40K based on those numbers (assuming the $40K mutual funds are in the students name). Go back and check your inputs.</p>
<p>$40,000 seems very high for an income of $110,000. I also was under the impression that any money in 401k’s and ira’s were not counted in efc. </p>
<p>thanks for help</p>
<p>Money deposited in 2011 into 401k or IRA accounts would be added back into income for 2011. Money already in those accounts is not considered as investments available for FAFSA.</p>
<p>
EFC is usually in the 25-33% range of income. That would be ~$30K. I made the assumption the $40K is in the student’s name which uses 20% for it’s contribution to EFC. I wouldn’t expect the student to have 401K or IRA funds. If they are in the parent’s name then they only add 5.6% of their value to the EFC. And as Happymom stated, any 401K/IRA contribution in the last year would be added back but the funds themselves would not be included.</p>
<p>To the OP…you need to check your college(s) websites. Some schools REQUIRE you to submit your 2011 tax returns as part of their financial aid application process. If this is the case, you will need to send them.</p>
<p>cyber, once your FAFSA has finished processing, you can look at it. Pay particular attention to both student and parent income from work, AGI, taxes paid, and untaxed income. Also, double check the asset amounts. If you don’t see any mistakes, post back here & we can try to help you (or PM me).</p>
<p>kelsmom - I have a question about the direct link to IRS; last year there was a disclaimer stating that they weren’t sure how timely this processing would be, meaning that a student with important deadlines might not get the aid they were entitled to if the link up didn’t happen for some time - I do not see this disclaimer on this year’s form. Do you know what the time line is for this link up? How could you check to see if the process had connected in time to meet a schools deadlines?</p>
<p>Unfortunately, I don’t know what is happening with timing this year … I left the financial aid field in the summer. However, the bugs were pretty well worked out by the end of last year. The last time estimate I heard was that the info could be downloaded within 2 weeks of electronic filing. The link actually happens instantly. If the info is not in the IRS system yet, it will say that the info is not available. If it is ready, it links right then & there. That is why the suggestion is to do a good estimate to meet deadlines if necessary, then link & download when the information is available in the IRS system.</p>
<p>Thanks! That is good news…</p>