<p>I finally have gotten around to sending out the IDOC packet (yes, I know how late it is; we didn't get our tax returns until this week, because they could not physically be completed earlier), and noticed they wanted our tax returns, W-2s and 1099 forms. Why do they need to have the latter two documents when all the relevant information they contain are already found on the tax returns? My parents are rather reluctant to send in them if they don't have to, especially considering IDOC is run by Collegeboard, rather than the colleges themselves.</p>
<p>On a slightly related note, what is the procedure for sending in the information to colleges that do not use IDOC (for me, Princeton and University of Rochester)? Do I just send in my tax forms directly to the office of financial aid? Additionally, which forms would I send in to them?</p>
<p>You have to send in the W2 forms and 1099’s because the schools need to verify that the information supplied matches. I cannot tell you how many times I have sen tax returns with incorrect figures. Also, W2 forms contain information that isn’t expressly presented on the tax return, such as 401K contributions. Without the W2 forms, the schol cannot properly determine if there are contributions and how much…something that is specifically asked for as a separate entry on the FAFSA.</p>
<p>While your parent’s may feel that these forms are redundant and unneccessary, I can tell you, schools will not process your application for aid without them. FAA’s never ask for something they do not need, either based on Federal regulations or institutional policy.</p>
<p>For schools who do not require IDOC, you would only submit the tax returns, W2 and 1099 forms if you are selected for verification. They will send you a request for any documents they need you to collect. HOWEVER, be sure read their FA page because some schools require these forms of ALL students…and if that is the case, their FA page will clearly state that information and the precise forms they need from you and your parents.</p>
<p>Okay, I’ll send them in. Will I be penalized for not sending them until now? I really couldn’t, since our tax forms weren’t available until recently.</p>
<p>“Income Tax Returns
Princeton requires verification of the income information you enter on your application, which is usually estimated at the time of submission. You will be asked for copies of your parents’ 2008 federal income tax return(s) and W-2 (wage and tax) statements when they are available. We strongly recommend that you provide these documents by March 15, 2009. Mail them directly to Box 591, Princeton, NJ 08542, or fax to 609-258-0336. (Do not use CSS IDOC.)”</p>
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<p>All schools ask you to turn in estimates by the deadline, that way they can give you a provisional FA package. Then you send in corrections when your taxes are finished and they give you a final FA package.</p>
<p>Okay, so I will still receive something regular? Thanks. I still have the bad feeling I’ll be needing to negotiate FA (since the information makes us look richer than we are), but I can at least be content knowing I won’t be getting a reduced amount because of something I was completely unable to control (i.e. expedite the reception of the tax return).</p>
<p>I don’t know. FA is on a first come first served basis, that’s why they request that you send in estimates as a place marker until your taxes are finalized. </p>
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<p>I wouldn’t count on “negotiating” with P, they are one of the most generous schools in the country to start with and EVERYBODY thinks that the FA information makes them look richer then they are. They will likely only reevaluate your FA package if you have a better offer from a peer school (HYSM) or have extenuating circumstances (eg. large medical bills, loss of a job, etc.)</p>
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<p>I repeat, you were supposed to send in estimated financial information by the March deadline. While you were not able to control the timing of your final taxes, you were able to send in estimates by the deadline, but you did not. Therefore, you may or may not get a full FA package.</p>
<p>I did turn in the applications by the deadline (except for Yale’s CSS Profile, which was submitted around midnight PST on March 2, which is early March 3 EST, for a March 2 deadline - I don’t think that is substantial). I thought the tax returns were necessary for the preliminary aid award, as well as the final one. As that apparently isn’t the case, then I am fine.</p>
<p>About Princeton, I guess I’ll really worry about it if I have the opportunity of attending, since this is all meaningless speculation until I am admitted.</p>
<p>With that said, though, the information on FAFSA and our tax returns suggests that we made 47k in untaxed income from pension plans, on top of our regular adjusted gross income. When put in the financial aid estimator, this moved an award of nearly 40k down to 15k, and at that price, I would be unable to attend. Of course, we did not actually make that money; it was just transferred from one pension plan to another. I think it might be noted on the 1099s that it really isn’t income, but Princeton does not ask for them. So if they give me a terrible award based on this, it will necessitate negotiation. Should I perhaps send in the 1099s with the tax returns and W-2s, even though they are not explicitly asked for?</p>
<p>OK…I’ll be the blunt one here. It’s not that your taxes “couldn’t” be completed…your family “didn’t” get them completed earlier. Still…they are done now.</p>
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<p>Because the university could potentially be awarding you some money. They want to verify that what is ON the tax returns matches what is ON these forms.</p>
<p>Re: the transfer of retirement money…was it “rolled over” within the prescribed timeline from one tax deferred plan to another or not. If it was rolled over in the prescribed amount of time, it is not taxed and it is not income on the finaid forms.</p>
<p>Princeton uses the Profile in addition to the FAFSA. Your FAFSA EFC is really unimportant except for federal financial aid awards. What IS important is how Princeton does your finaid calculation.</p>
<p>Princeton meets full need. Even those getting off of the waitlist who have NEED get their need met. Still…not meeting a deadline is not a good thing.</p>
<p>At this point, get it all in and see how it all pans out. Acceptances to Princeton don’t even come out until tomorrow night. Call the finaid office and explain what the issue is. See what they say to do with those tax documents.</p>
<p>AIC didn’t send out something relating to our investments until March 2, even though we asked for it earlier. Our accountants couldn’t get them done until after this date.</p>
<p>Otherwise, thanks for the advice. I’ll do as suggested.</p>
<p>If the money was rolled from one IRA into another, the tax return should be noted that way…one does not pay taxes on money that was rolled over within the allotted time period, but the amount is still reported on the tax return with the words ROLLOVER near it. Double check the tax return, you may be inputing the information into the calculator incorrectly and causing yourself unnecessary stress and worry.</p>