According to my SAR, I was selected to be a part of the FAFSA verification process (yay). I was just wondering what this process entails and hoping for a little bit of clarification…
Just a little bit of background info: my parents and I already filled out the FAFSA (on Jan. 1st) with estimates (status as “will file”). My dad owns his own business and my mother was laid off and qualifies as a dislocated worker. They are married and jointly file with Form 1040.
Now that my father has completed and filed our taxes, I’m wondering if we should make the correction ASAP or wait until our yearly tax returns have been processed so we can use the IRS data retrieval tool. Our estimates were a little off so the correction will probably make a difference in the EFC.
Should we correct the numbers tonight, set the status to have filed, and then update again later using the IRS data retrieval tool? I have to add a school anyway, so it makes sense to update the numbers now and come back later with the tool, right? Also, once we’ve entered the numbers via the IRS tool, is the verification process essentially over or is there more we have to do?
Thanks in advance, and sorry if my questions don’t make any sense. The only exposure I’ve had to stuff like this is in my standardized EPI class, so I’m basically in the dark. It’s also the first time my parents have filled out the FAFSA, which only adds to the confusion unfortunately!!
Because you were selected for verification, you will be required to use the DRT - you can update with the correct numbers now, then use the DRT when it is available. Many schools package aid for first-time-in-college students before completing verification (they send an estimated award letter), so the sooner you do the updates, the better chance you have that the estimated award letter is based on your updated info.
Verification is more than just using the DRT. You will need to complete forms with info about your untaxed income, household size, etc. - that is, assuming the reason you were selected for verification is related to income/household size. Sometimes students are selected for verification for other reasons. We don’t read much about those other reasons on CC, but you could be asked for different info than we generally hear about (this started with the 14-15 award year).
Your school(s) will ask you for info. Watch your online account, in case they communicate that way - and the mail, in case they communicate that way.
Thanks so much for the help! Verification seems like such a tedious process, but at least I understand it a bit more now! 
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My dad owns his own business and my mother was laid off and qualifies as a dislocated worker. They are married and jointly file with Form 1040.
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Is your income rather modest? I thought to get that status the other spouse can’t earn much? but, maybe not?
Which status - dislocated worker? Anyone who fits the description qualifies for that status.
Kelsmom, I think the question…what benefit does dislocated worker have if income is not low enough to qualify for simplified needs or auto $0 EFC?
None … it is one consideration in automatic zero EFC, and it allows assets to be ignored if income is less than $50,000. If not low enough for auto 0 or SNT, there is no benefit.
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if income is less than $50,000. If not low enough for auto 0 or SNT, there is no benefit.
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that’s what I meant. I realize that anyone can be a dislocated worker, but to see any benefit then…
So…to nuhsgrad…is your family income so low that this dislocated worker status will benefit you? If not…it really doesn’t matter much.
Sorry for the late reply, but I checked the parameters and taking into account our AGI, the dislocated worker status will benefit - thanks so much!
Just reading this thread. We will get taxes back this week and were selected for verification. If I correct the numbers manually and submit the fafsa with corrections I will be able to go back in in a couple of weeks to complete the data retrieval? They allow more than one correction? Thanks!
Yes, you can update manually now and use the tool later when the IRS has process the return(s).
The correction option will still be there when I select ‘filed’ when I do the manual correct?