<p>That’s not correct. The IRS completed processing on the returns due refunds first. So even if you filed early and sent in what you owed with the return, you still had to wait for the necessary verification documents. We filed the first week of February and sent a check for the balance due; it was the last week of April before we could obtain a transcript. That makes it tough, since FA packages then generally don’t get finalized until after the acceptance deadline. In our case, it didn’t matter, because the FA award didn’t change, but I suspect there were other people who received unpleasant surprises over the summer.</p>
<p>That’s why I would recommend making an estimated tax payment at least several weeks before you send in the return, making sure that the estimated amount will result in a small refund.</p>
<p>Does the overpayment need to be submitted in advance (during the prior calendar year), or will things go just as quickly if it’s submitted with the tax return on January 1st?</p>
<p>Just got off the phone with the IRS (fun times!) - was told the following:</p>
<p>(1) electronic returns get processed faster than paper returns (3-4 wks. <-> 6-8 wks.);</p>
<p>(2) returns due refunds are not processed more quickly than other returns;</p>
<p>(3) for any return for which full payment has been made, the taxpayer can request a transcript approx. one week after the return is processed;</p>
<p>(4) returns submitted without payment in full are processed within the same time frame, but are not posted until the first week of May. As a result, the taxpayer has no access to either data retrieval or a paper transcript until the second week of May.</p>
<p>All of this information was provided with the caveat that things “might change at any time.”</p>
<p>I e-filed in mid-February, and scheduled the payment to happen immediately. The money was sucked out of my account a couple of days later, and I was able to verify about a week after that.</p>
<p>I suspect in your case it was because you paid by check and not an automatic withdrawal.</p>
<p>Annasdad, if a student’s parents have outstanding issues with the IRS it DOES affect the student’s ability to get need based aid. I KNOW that parents who are required to file taxes and don’t WILL keep their kids from getting federally funded need based money.</p>
<p>thumper1 - I think the question is what constitutes an “outstanding issue” for purposes of federal student aid . . .</p>
<p>Unpaid taxes - NO
No tax return filed - YES</p>
<p>Ultimately, I don’t think the denial of aid is intended to penalize the parents for their delinquency. Rather, it’s pretty simple → if there’s no tax return, there’s no way to verify the student’s eligibility for aid.</p>
<p>dodgersmom, based on 40 years of dealing with IRS, the one thing of which I am certain is that if you call three times and ask the same question of three different people, you’re likely to get three different answers.</p>
<p>I hope the situation is as you describe it this year. Last year, it was not that way.</p>
<p>thumper, yes, the parent must have filed taxes, because the student’s parent needs to be able to show a tax return for the student to qualify for aid. But if the parent has a deficiency, that will not prevent the student from getting aid.</p>
<p>My advice is to file as soon as possible. Do not wait on forms that are not coming for a while. Use what you have and file an amended 1040X when all of your info arrives</p>
<p>Also talk to the college financial aid offices individually and ask what they will take, Some may give an estimated package without the IRS connect. My son’s school took a copy of the return. It ultimately comes down to what they will use, their individual rules.</p>
<p>The FAFSA folks have no direct-connect with the IRS folks … the only way it links is when the person gives express permission on the FAFSA to link. So if you should have filed in 2010 but didn’t … or if you owe back taxes for prior years … your aid office will not know that. The issue regarding filing is that there must be a return filed for the base year (2012 for 2013-14). If there is no return, there is no federal aid (that is, if the person is required to file). The beauty of the recent requirement to transfer directly from the IRS website is that people can’t lie - they can’t make up a fake return to submit to the aid office, and they can’t under-report their income on the FAFSA. </p>
<p>If a school requires the actual returns be submitted by 2/1, it is in the student’s best interest to comply. Aid funds go quickly. If it is impossible for the parents to get their taxes done that early, file the FAFSA with good estimates. As soon as possible, submit the tax forms to the school. Update the FAFSA by direct-linking to the IRS as soon as that is available. If you owe & aren’t paying right away, and if it is true that your return will not be available for transcript or direct link to FAFSA before 5/1, you are in a bit of a bind. Your school might decide to verify your information based on your tax return for school purposes, but if you were selected for verification by the federal processor you are going to have to eventually provide a tax transcript or direct transfer before the aid office can consider your file complete.</p>