Could someone with more experience with the IRS Data Retrieval Tool please describe it, how it’s used, when it’s used, etc? I know this will be helpful for,the students getting ready to do their FAFSA forms.
I’ve only used it once…with some excellent guidance from folks here. In our case, we filed the FAFSA, but needed to wait a couple of weeks to link to the DRT because we had just filed our taxes.
“It may also reduce the likelihood that your FAFSA will be selected for verification.”
See https://fafsa.ed.gov/help/irshlp9.htm
If you owed no money, the DRT should be available within a couple weeks after filing. If you need to pay additional amount, it may take over a month before you can use DRT. I usually do some final IRA contribution to offset the remaining tax due.
If you have your taxes done prior to FAFSA filing…can you link directly to the DRT first…and does it import the info off of your tax return?
Be very aware of rollovers. It specifically stated IF it were a rollover it needed to be changed, yet all the schools DS applied to kept changing it and our EFC kept going higher.
I had to call every single school and explain to them what was happening. And even with the IRS transcript, the amount was showing up, but it wasn’t added in. The personnel were only looking at that specific amount & not the bottom line. Once I got it straightened out w/ UA for DS, I then had to call DD’s school and send in paperwork w/ supporting documents. After getting it fixed, so I thought, it still was altered and her FA package was reduced. Called again. It was a royal PITA.
I know a guy who had about half a million in rollover amount. They went thourgh hell with all kinds of forms and supporting paperwork being sent to the school, repeatedly. When we were talking about it I told him about the rollover amounts and how transferring the data from IRS to FAFSA didn’t work in this circumstance.
I think I read that this may have changed on this years FAFSA, but I think this is a good example on not relying on “tools”, make sure you understand the process as well.
Here is info about the DRT & its availability: https://studentaid.ed.gov/sa/resources/irs-drt-text. You can file your FAFSA & then go back later to link to the DRT so you know everything is correct. If you wait until the DRT is available & your taxes are available via the DRT, you can link directly when you file the initial FAFSA … but that won’t be until at least the 1st Sunday in February (and your taxes may not be available at that time). The info is directly imported from what was reported to the IRS on the tax return, and you wouldn’t need to enter any of that info … it is entered for you.
Just posted above with the caveat of not relying on the process, “understand” your process & the numbers.
Rollovers are being handled this year with a series of questions that identify that there is a rollover. That is a helpful change.
Our experience with FAFSA and DRT last year was straightforward and painless.
I e-filed taxes on 2/4, the tax software I used online had a nifty worksheet I could print out that listed info I needed to fill out the FAFSA with. Then we submitted FAFSA with “will file” on 2/6.
On 2/9 when I checked “where is my refund” it said that our return was accepted and processed (we were getting a refund).
I then was able to link the tax return info to the FAFSA with the DRT.
The numbers stayed the same, but now it said “transferred from IRS” next to those fields.