I didn’t use IRS Data Retrieval Tool (DRT) when filing FAFSA one month ago. My son submitted four college applications. They all received our FAFSA report but one of them said that “If you are admitted, however, we require the IRS DRT to be used to finalize your aid”. I heard that DRT may cause some issues. Do you know if this is true? Thanks
Why would the DRT cause issues?
If you parents filed a joint return, just do it. Either that or request a tax transcript…now…because you are going to need to provide it to the colleges to document that what you entered on your financial aid forms was what was on your taxes.
thumper1: Thanks. If DRT does NOT cause any issue, I prefer to go back to FAFSA to make correction to use DRT. After doing this, will FAFSA automatically send the updated info to the schools that were and still are on the FAFSA list?
You will link to the IRS DRT and resubmit to all of the colleges. It’s not automatic…you need to submit.
A bunch of years ago, there was an issue with the DRT. That was corrected, and I don’t believe it’s an issue now. My kid has used it for the last four years. Way easier than requesting a tax transcript.
The school requires that DRT be used? What happens in situations where the applicant’s family is not eligible to use the DRT, for one reason or another? What school is this?
I’m with @BelknapPoint that the school can’t require the DRT be used. BUT the school can require a tax transcript or some other proof that what you put on the forms matches the tax returns.
@BelknapPoint really the only ineligible ones would be folks who haven’t worked. Or married parents who filed separately…Or international students. Or folks who amended their tax returns… Right?
For those who earned wages in the U.S. unless they are married filing separately or amended , they should be eligible to use the DRT. If they filed separately or amended, they would need a tax transcript
There are some other, not uncommon, situations that make students and/or parents ineligible to use DRT.
@BelknapPoint maybe this college sees that this is regular income earned and thus the requirement for the DRT.
I don’t understand your point. There are lots of families where a parent has “regular earned income” and is still ineligible to use DRT. I have a hard time believing that a school has a policy requiring the use of DRT in order to “finalize” aid. Such a policy would ignore reality.
Some colleges require the tax transcript if DRT not used. Something I heard early this year.
There are cases when you cannot use the DRT. There are situations when using the DRT can be problematic (rollovers of Iras and 401ks, for example), married filing separately, HOH, unmarried parents living together, Puerto Rican’s . And then there are those who did not file taxes
You cannot use DRT under certain circumstances that are not all that unusual so that college would have an alternative for those who cannot. They may prefer that that the DRT be used if possible
We could not use DRT because I have had someone use my SSN in the past to file fake taxes. Anyone with identity theft issues in their past would not be allowed to use DRT (and I am sure there’s quite a few people that fall into that category). So a school cannot REQUIRE you to use DRT. Having said that, I would have used it if I could as I’m all for simplifying things 