As per above, because of retirement from one of my jobs in early 2017, the 2018-2019 FAFSA will show income in 2016 that is 80,000 higher than it will be in 2017. Not that we’re in financial trouble, but with 2 kids in college for that year (1 OOS public, the other applying) it would be nice if FA officers considered my actual 2017 income, not even considering that it is further declining in 2018.
I assume that all we can do is explain this situation to each school and provide documentation for actual 2017 income.
Your assumption is correct. There is no option to use a different tax year on the FAFSA.
You can try to ask for a special circumstances adjustment for loss of income. Some schools will do it, while others will not. It’s worth asking.
Many schools have a form on the FA webpage that you file for special circumstances - loss of job, death in family, illness, etc. You have to fill out the FAFSA with the information it requests, but schools do realize that no everything stays the same. The forms tell you what to include (2017 taxes when you file them, letters from employer, other assets).