<p>We were selected for verification by one college as they said we did not use the verification tool. This request was sent prior to us being able to use the data retrieval tool as we submitted the original FAFSA based on 2011 return. We did use the tool for 2012 tax return once filed and I assumed it brought everything over from our 2012 tax return that was needed. </p>
<p>When I spoke to the FA office today, they said that the retrieval tool does not bring in contributions to retirement plans. I know these amounts are right on the tax return and also show up on the W2s and spouse listed direct payment (not thru employer) to his self funded retirement plan. Is this the money they are saying wouldn't be brought over using retrieval tool? When we did our corrections to the FAFSA, I assumed it brought over all that is needed, since we used 2011 return for original info. I will fill out the additional income form they sent us, but I am feeling sort of confused. If these amounts were also factored into the return we filed, I am wondering why they are not automatically brought in. We use an accountant for taxes, so did not realize everything on the return isn't brought in... Am I still confused? This is our first time doing all of this.</p>
<p>Pre-tax retirement contributions aren’t entered on any tax form. Box 1 of the W-2 will have pre-tax amounts already subtracted out so your AGI is lower. Box 1 goes on line 7 of the 1040. Box 12d of the W-2 has the retirement contributions but isn’t entered on any tax form. So the tool can’t transfer that amount from the IRS to FAFSA. You need to manually enter the number from Box 12d into the appropriate FAFSA question so it can be added back into AGI. Pre-tax contributions and traditional IRA contributions for which a deduction from AGI was taken need to be reported. Roth contributions don’t need to be reported nor do traditional IRA contributions if no deduction was taken.</p>
<p>ADad- Tonight I went over my 2012 tax return line by line and compared it to what was brought over using the IRS Data Retrieval Tool into the corrected FAFSA and it is the exact amounts on the 2012 retirement contributions from the W2s and exact amounts of 2012 post tax contributions to H’s pension plan. So, I will mail copies of the w2s as instructed, and fill out the worksheet they sent. The other lines 15a-15b and 16a-16b can be verified right from the tax return and were also brought into the FAFSA using the retrieval tool. I never made any manual corrections the second time around and they are the exact numbers requested from the college and they are already on the FAFSA. At least, I don’t see any big surprises coming. We still aren’t getting any FA!</p>
<p>Don’t argue with a bureaucracy. If they want a form, send them the form. They may ask for the same information 20 times, so give it to them 20 times. Don’t expect them to “figure it out”. They are not paid to figure it out. They are paid to make sure a number is in the box, and it is your job to put it there.</p>
<p>it is the exact amounts on the 2012 retirement contributions from the W2s</p>
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<p>The retirement contributions on the W2s do NOT get entered on your tax return … that is why you are being asked to provide W2s to the aid office. You are not taxed on those contributions (which is why they are not on your tax return), but it is available income that “could” be used for college rather than put toward retirement.</p>