Son has a early May FA application deadline. Have submitted all the necessary CSS/FAFSA forms etc., He filed 1040 taxes electronically mid March, (five weeks ago) and paid amount due week later. Check cleared the bank 4 weeks ago. Unable to make fafsa corrections to use DRT as taxes seems not yet processed. FAFSA requires verification. Should he tick the box that asks You have not yet used the IRS DRT in FAFSA on the Web, but will use the tool to transfer 2014 IRS income tax return information into the student’s FAFSA once the 2014 IRS income tax return has been FILED. even though he has already filed. OR
tick the box that says You are unable or choose not to use the IRS DRT in FAFSA on the Web, and instead will provide the school a 2014 IRS Tax Return Transcript.
Is there anyone who filed 1040 but did not pay the tax due with return but have paid subsequently has this problem? It appears he cannot yet request the transcripts as taxes are not yet processed. Any advice what he should do beside asking the school for an extension for the transcripts. There is a number you could call if a refund due or return is amended but no number to simply find out when filed taxes are processed?
There is a chart about when the tax transcript would be available. I think I recall it saying that if you owed money, it would not be processed until May or June, but you should check because I only glanced at that box since I’m getting a refund. I’d think the DRT would be available to you sooner than the transcript.
Two years ago we were in the exact same situation. We were not able to do the DRT until several months after filing our son’s return. Apparently the returns of first time filers who owe money are delayed. Is this the first year that he has filed a tax return? Check with the college about what you should do regarding the verification. The deadline at my son’s college wasn’t until June but he wasn’t a freshman. The school probably requires other information if you were selected for verification.
Thanks @ twinanddone and 3younguns. Yes he is a first time filer and currently a freshman at college. Feel relieved that someone has been in the same situation. Was very worried why this was taking so long. You mentioned that you were able to do DRT few months later. But were you able to do before the FA deadline? Looks like in our Son’s case DRT might not be available until well after the deadline. School so far only requires the verification work sheet which he will submit soon. In the verification form there are few boxes he has to select re the tax issue. Will have him call the college to find out which box to fill as mentioned in my earlier post. I believe school will not be able to finalize the FA figures until either the DRT or transcripts are submitted.
Don’t know the situation for first-time filers, but I know that the processing of all returns filed with taxes owing is delayed until about mid-May. They’re simply pushed to the back of the line for processing, which means neither the transcript nor the DRT will be available before then. That the taxes were eventually paid makes no difference - the return is already at the back of the line.
In my experience IRS published dates are very conservative. In reality they process everything sooner. My daughter’s DRT for paper return with taxes due was available second week of April. I filed amended tax return in February that was supposed to be processed in June but the new transcript was already available first week of April. There is hope.
We were not able to do the DRT until mid June but fortunately met the 6/30 deadline. Our check for the tax payment cleared on 3/25. The school will tell you what you need to do. Of course it may be different this year as our experience was last year (not two years that I posted above).
Thanks @ CCDD14 and 3younguns. You mentioned that the payment cleared 03/25 and the transcripts were only available in June, did your son efile? IRS website says that paper returns with subsequent payment will be processed in June. Our son filed electronically but sent a check week later which got cleared 03/25 of this year. IRS website says such returns will be processed in May. Got an extension for the transcripts till early June. Hope he will be able to meet this deadline.