<p>Just wanted to make sure I have this right, hopefully from someone who's done this before. Also, I will be a freshman in college for 2015-2016.</p>
<ol>
<li>The FAFSA for 2015-2016 is release January 1.</li>
<li>It's advised to complete it ASAP using estimates (is this right? do we use last years taxes/forms?)</li>
<li>Once taxes are filed (we have a CPA that does this for my parents and their business, so he/she is supposed to be doing it ASAP), use the IRS retrieval tool (or something like that?) to complete it accurately, again ASAP</li>
</ol>
<p>Is all this correct? Do I send it off to colleges (how does that work?) after step 2 or step 3? There a limited number of state grants at my college I'm hoping for, so I know I need to do this ASAP, right?</p>
<p>Yes. Fill out FASFA on January 1 with estimates. If the information is going to be similar to 2013 return, use those numbers.
As soon as you have 2014 return complete you can use the retrieval tool to update changes.
Send to any school you have applied to. There is an option to do this with the school codes.
The process is very easy once you start the application. Give yourself plenty of time and have all information in front of you. </p>
<p>With your parents having a business, income may vary significantly year to year, so do the best estimating you can for 2014. 2013 could be a good starting point for the estimate or it may not be.</p>
<p>You and one parent sign and submit it after step 2 with a ‘will file’ tax return status. Then again after step 3 you and a parent sign and submit it with a ‘have filed’ tax status.</p>
<p>A few clarifications on the Data Retrieval Tool: the earliest it will be available for you to use is several days (perhaps 3) after your parents have had their 2014 tax return e-filed AND accepted by the IRS as long as their was no balance due with the return.</p>
<p>If your parents e-file, but there is a balance due, or they file on paper (unusual, but some tax forms force a paper filing) whether there is or isn’t a balance due, then the Data Retrieval Tool may not be available for quite some time. </p>
<p>If your parents e-file, and then file an Amended tax return, the Data Retrieval Tool is never available. </p>
<p>This was from the Department of Ed’s What’s New with the FAFSA webinar with NACAC in December.</p>
<p>It took me a few reads, but I gotcha, I won’t be able to use the retrieval tool immediately after filing, and even longer if something weird comes up. I think I’ll be sending it in with ‘will file’ asap and then updating it as soon as it’s possible, then.</p>
<p>Another thing…very often business owners file for extensions for taxes until October. This is NOT the year to do that. Your parents really need to get their taxes done ASAP after February 1.</p>
<p>@thumper1 Yes, thanks so much for reminding me! We do usually file for extensions for taxes because of the business. Someone mentioned something similar on an old FAFSA thread, so we’ve been telling the CPA in advance that these need to prepared as soon as feasible. My parents are meeting with him soon, so I’ll be sure they mention it again.</p>