<p>Hey guys, I'm a junior in college and have received the Pell grant every year until this semester my university took all financial aid away after I used the IRS tool to fill out my FAFSA. Now the issue is that it took into account my father's retirement figure as untaxed income rather than a rollover, thus increasing my EFC of 290 to a whopping 24,XXX figure. The FAFSA live help was useless in my session with them so....
Here are some specifics from their 1040A form:
(Married filing with 2 dependents)
Line 7 (Wage, salaries...): 29,502
Line 8 - 11: Blank
Line 12a(Pensions, annuities): 67,774
Line 12b(Taxable amount): Rollover 32,113
Line 15(Total income): 61,615
Line 21(AGI): 61,615</p>
<p>And from the FAFSA (using the IRS retrieval tool):
Question 92f(Untaxed Income): 35661</p>
<p>I have a 1099 form from my father with the figure 35660.84 which I figure corresponds to the one the IRS tool rounded and used in my FAFSA. The same 1099 form states in Box 7 that it is Distribution Code: G which if I'm not mistaken corresponds to a direct rollover. I'm lost as to how my fathers retirement money is counted against me.Is the figure in 92f from my FAFSA correctly filled or am to correct the FAFSA again? Thanks in advance for any help.</p>
<p>This is a glitch in the IRS retrieval tool. Rollover IRA Distributions should not be counted as untaxed income, however the IRS Data Retrieval Tool is unable to distinguish these from non-rollover distributions. You should submit a signed copy of your 1040 tax return, along with a signed statement explaining the amount, to the college Financial Aid Office. Do not make the correction to your FAFSA. Call AND Email your financial aid director about this and send the materials over to the college fiancial aid office.</p>
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I would think they could fixed by now. It happened to my kids in last year. Like cptofthehouse said, we had to meet with the financial aid officer (not the front desk), submitted a signed copy of my 1040 form, a copy of my tax transcript, and also a copy of my 1099-R. The officer entered the correction to the system in front of us, and I don’t remember if the school ever made a correction to my kids’ FAFSA. However, my kids got the corrected amount of financial aid, so we’re happy.</p>
<p>Thank you for the quick responses. I went to the school and they told me to fill out an untaxed income form, but I will also include the 1099 and signed tax transcripts alongside when I hand it in. Hopefully I can get this all straightened out next time I go.</p>
<p>^Only give them the copy of 1099 and tax transcript</p>
<p>This is and will continue to be an issue with the IRS retrieval. My understanding is that the rollover cannot be distinguished in the process of retrieving info from the tax return. I would like to see something in the FAFSA instructions that instructs those who have a rollover to contact their schools to let them know. At least that will alert people to the issue so that they can provide the necessary info to prove the rollover (and the documents may vary by school, so the FAFSA instructions can’t tell people what to provide to the school).</p>