USA Funds University
Verification
Summer Financial Aid Webcast
June 26, 2013
Special Note
These materials are for the benefit of financial aid professionals and other campus administrators. They are
intended to provide current facts and information and are not intended to be legal advice. These materials
contain information related to Federal Title IV student aid programs and have neither been reviewed nor
approved by the U.S. Department of Education. You are encouraged to seek your own competent legal
counsel in connection with the topics covered in these materials. USA Funds® disclaims all responsibility for
any claim arising from reliance on the information provided.
© Copyright 2013 United Student Aid Funds, Inc. All Rights Reserved.
Questions regarding the content of this publication should be addressed to USA Funds University,
P.O. Box 6028 Indianapolis, IN 46206-6028 or by calling (317) 806-0208.
www.usafunds.org
Verification
The U.S. Department of Education began the verification selection process during the 1986-1987 award year. ED
implemented this process to resolve information that is incorrectly reported on the Free Application for Federal Student
Aid. By reducing errors in applicant-reported data, financial aid administrators ensure, to the maximum extent possible,
that eligible applicants receive the correct types and amounts of financial assistance.
Selection Process
34 CFR 668.54.
FAFSAs are selected for verification by the Central Processing System or the school. The CPS selects applicants either
randomly or by choosing applications that do not meet a series of federal edits. These federal edits are not made
available to the public. Schools also have the authority to verify the application information of any student who applies
for federal aid, even if the application was not selected by the CPS. School-selection criteria must be applied fairly and
consistently to all applicants.
School
ISIR received with
the verification flag
set to “Y.”
CPS selects
application for
verification.
School selects
application for
verification.
Notify student of
required
documentation.
Student
SAR received with
asterisk next to EFC.
Contact school for
required
documentation.
School may request additional
documentation.
Complete
verification using
documentation
submitted.
Submit requested
documentation.
Trainer’s Tidbit
Schools that participate in the Quality Assurance Program are exempt from certain administrative and procedural
requirements, including certain verification requirements. For example, some QA schools may elect to implement their
own verification selection criteria, rather than verify those selected by the CPS. For additional information about the QA
program, visit http://ifap.ed.gov/qahome/Default.html.
NOTES
1
Verification Exclusions
Schools are not required to verify the parent’s information
if the parent(s) listed on the FAFSA:
34 CFR 668.54(b).
2013-2014 Federal Student Aid Handbook, Application and
Verification Guide, p. AVG-77-78.
u
Are mentally incapacitated, OR
u
Reside outside the U.S. and cannot be reached, OR
The presence of certain circumstances may allow the
student, parent or spouse to be exempt from all or part of
the verification process, even when selected by the CPS.
The school may not utilize these exceptions if it believes
incorrect information is present on the application. Any
exclusion that a school exercises must be documented in
the student’s file.
u
Cannot be reached because contact information is
unknown and cannot be obtained.
Schools are not required to complete verification if the
applicant:
u
Is not a Title IV aid recipient.
u
Is eligible only for unsubsidized aid programs, such as:
Schools are not required to verify the spouse’s information
listed on the FAFSA if the spouse is:
– Graduate or Parent PLUS loans.
u
Leaves the institution and subsequently is selected for
verification.
Mentally incapacitated, OR
u
Residing outside the U.S. and cannot be reached, OR
u
Cannot be reached because contact information is
unknown and cannot be obtained.
For the applicants it selects for verification, an institution
is not required to verify any or all of the FAFSA
information identified by the Secretary for the award
year and it may require verification of other FAFSA
information. The institution also may determine what
documentation to accept for the applicants it selects for
verification, for any of the FAFSA information it has
determined must be verified.
– All disbursements were made, including late
disbursements.
u
u
Program Integrity Questions and Answers — Verification.
www2.ed.gov/policy/highered/reg/hearulemaking/2009
/verification.html.
– Unsubsidized Staﬀord loans.
Dies during the award year, even if the school made an
interim disbursement prior to the student's death.
Deceased, OR
Trainer’s Tidbit
– Teacher Education Assistance for College and Higher
Education Grants.
u
u
Is verified by another school for the same award year.
– A statement from the other institution needs to include
the application transaction number verified and, if
applicable, why the school did not recalculate the
Expected Family Contribution.
An institution is not required to complete verification if the
student is eligible for both subsidized and unsubsidized
financial assistance and chooses not to accept any of the
Title IV aid. A student's election to receive only
unsubsidized financial assistance, however, does not
qualify for the verification exclusion.
Trainer’s Tidbit
P.L. 112-25.
Dear Colleague Letter GEN-11-16.
Because graduate and professional students do not
qualify for subsidized Staﬀord loans, schools may
choose not to verify those applicants, based on their
policies and procedures. The school must verify
graduate students, however, if they are eligible to
receive Perkins loans or Federal Work-Study funds.
2
2013-2014 Verification Requirements Overview
34 CFR 668.56.
Federal Register, Vol. 77, No. 134, p. 41173-41176.
Dear Colleague Letter GEN-12-11.
When a student's application is selected for verification by the CPS, certain information must be documented and
validated by the school. The regulations specify that the items schools must verify and the acceptable documentation for
each item will be defined by ED on an annual basis and could change from one year to the next. Requirements for each
year will be outlined in the Federal Register approximately four to six months prior to the start of each application cycle.
On July 12, 2012, the Department informed schools of the information that must be verified for the 2013-2014 award
year. The Federal Register and subsequent guidance listed the documentation an applicant must provide to the school to
verify the accuracy of each required item.
2013-2014 Required Verification Items
Non-income related items for certain applicants selected for verification:
u Household size.
u Number in college.
u Child support paid.
u Supplemental Nutrition Assistance Program, commonly known as Food Stamps.
u High school completion.
u Identity/educational purpose.
Yes
Was or will a
federal income
tax return be
filed?
Additional required verification items:
u
Adjusted gross income.
u
U.S. tax paid.
u
Untaxed IRA distributions.
u
Untaxed pensions.
u
Education credits.
u
IRA deductions.
u
Tax exempt interest income.
No
Additional required verification item:
u
Income earned from work.
Customized Verification Process
34 CFR 668.54.
Dear Colleague Letter GEN-12-11.
While transitioning to a customized verification process, during the 2013-2014 award year, ED will use Verification
Tracking Flags to place an applicant selected for verification into one of five Verification Tracking Groups. The individual
items that must be verified for each applicant are based on the Verification Tracking Group to which the applicant has
been assigned.
3
Verification Tracking Groups and Required Information
Verification Verification
Tracking
Tracking Group Information Required to be Verified
Flag
Name
Tax Filers:
V1
Standard
Verification
Group
Household Size
u
Household Size
u
Number in College
u
Number in College
u
Child Support Paid
u
Child Support Paid
u
SNAP (Food Stamps)
u
SNAP (Food Stamps)
u
AGI
u
Income Earned from Work
u
U.S. Tax Paid
u
Untaxed IRA Distributions
u
Untaxed Pensions
u
Education Credits
u
IRA Deductions
u
Tax-Exempt Interest
V2
SNAP Verification
Group
SNAP (Food Stamps)
Child Support
Paid Verification
Group
Child Support Paid
V3
V4
Custom
Verification
Group
Non-Tax Filers:
u
u
Child Support Paid
u
SNAP (Food Stamps)
u
High School Completion Status
u
Identity/Statement of Educational Purpose
Non-Tax Filers:
Tax Filers:
V5
Aggregate
Verification
Group
u
Household Size
u
Household Size
u
Number in College
u
Number in College
u
Child Support Paid
u
Child Support Paid
u
SNAP (Food Stamps)
u
SNAP (Food Stamps)
u
High School Completion Status
u
High School Completion Status
u
Identity/Statement of
Educational Purpose
u
Identity/Statement of
Educational Purpose
u
AGI
u
Income Earned from Work
u
U.S. Tax Paid
u
Untaxed IRA Distributions
u
Untaxed Pensions
u
Education Credits
u
IRA Deductions
u
Tax-Exempt Interest
Adapted from: Dear Colleague Letter GEN-12-11.
4
Summary of Tracking Group Requirements
Verification Tracking Group
Information Required to be Verified
V1
V2
V3
V4
V5
Household size
X
X
Number in college
X
X
Child support paid*
X
SNAP (Food Stamps)*
X
X
X
X
X
High school completion
X
X
Identity/educational purpose
X
X
Income/tax data
X
X
X
* Information must be verified if reported on the FAFSA.
Verification Flag and Verification Tracking Flag on ISIR
Verification Flag and Verification Tracking Flag on FAA Access to CPS Online
NOTES
5
X
Suggested Verification Text for 2013-2014 Documents
Electronic Announcement, Jan. 18, 2013.
On Jan. 18, 2013, ED provided financial aid administrators with text that institutions may use to gather verification
information for 2013-2014. Schools were urged to carefully review the information ED provided before deciding how to
request verification information from selected applicants. The Department encouraged institutions to use a targeted
approach to request only required verification information from applicants and families, based on the Verification
Tracking Group to which the applicant was assigned, and to avoid requiring an applicant to provide unnecessary
information.
According to the Electronic Announcement, schools must use the EXACT language provided in the Statement Of
Educational Purpose for students in V4 or V5 Verification Tracking Groups. However, schools are not required to use the
Department’s other suggested text or format, but may develop text specific to the items required for verification for a
particular student or group of students.
According to the Electronic Announcement, when schools are developing verification worksheets or documents, ED
suggests that “…each page include appropriate headings and numbering that identify the item(s) being verified.
Institutions should ensure that the institutional verification document collects the student’s name, ID number, and other
identifying information, and that each page is identified as belonging to that student. Also, the institutional verification
document should contain any special instructions for where, when, and how documents are to be submitted to the
institution.”
NOTES
6
IRS Data Retrieval Tool
The IRS DRT became available in February 2013, for the 2013-2014 FAFSA. The DRT is not a database match with the IRS.
Separate tax-filer consent is not required because the data is being retrieved by the tax filer. To be eligible to use the DRT,
applicants must have a valid Social Security number, an FSA PIN, filed a federal tax return and listed a marital status date
on the FAFSA of December 2012 or earlier.
For tax filers who indicate they already have completed their income tax returns, the FOTW application will ask a set of
filtering questions. The questions presented will vary based on the tax filer’s marital status as reported on the FAFSA.
Based on an applicant's response, FOTW will either recommend or prohibit the use of the DRT.
Filtering Questions for a FAFSA Marital Status of:
Single, Separated, Divorced or Widowed
Married
Provided from Fall 2012 FSA Conference, Session #26 — FAFSA & Application Processing Update.
NOTES
7
Retrievable Data
For federal income tax filers who are eligible to use the DRT, the following data is available for retrieval and transfer from
the IRS to the FAFSA using FOTW:
2013-2014 FAFSA Question Numbers
Tax Return Information
Student
Parent
Type of tax return filed
33
80
Adjusted gross income
35
83
U.S. tax paid
36
84
IRS exemptions
37
85
Education credits
43a
91a
IRA deductions and payments
44b
92b
Tax-exempt interest income
44d
92d
Untaxed IRA distributions*
44e
92e
Untaxed pensions*
44f
92f
*Rollovers, which should be excluded on the FAFSA, will not be accurately reflected through the DRT.
Trainer’s Tidbit
2013-2014 FAFSA, Q44i and Q92i.
Health Savings Accounts
Line 25 of IRS Form 1040.
Applicants must include as untaxed income any tax-free contributions to health savings accounts, if the filer — or anyone
other than an employer — made the contributions. HSA amounts are not retrieved through the DRT. If an amount
appears on tax documentation the school receives, any conflict with FAFSA data must be resolved.
First-Time Homebuyer Tax Credit
The first-time homebuyer tax credit expired at the end of the 2011 tax year and was not renewed for 2012. Even though
this line item appears in the 2013-2014 FAFSA instructions, it no longer is relevant to untaxed income reported.
NOTES
8
Rollovers
Program Integrity Questions and Answers —Verification.
While the DRT accesses several types of income, the system cannot identify income the tax filer reports as a rollover from
one retirement fund to another during the tax year. During data retrieval, the tax filer is cautioned to subtract any rollover
amounts for untaxed IRA distributions or untaxed pensions once the information is transferred. Unless the rollover
amount is subtracted by the tax filer, the income will be incorrectly overstated on the FAFSA. Once corrected, however,
the ISIR will reflect that the IRS data was altered after it was retrieved.
If the applicant notifies the school of a rollover, it should obtain alternate tax documents as well as documentation of the
rollover to complete verification. Note, however, if the school identifies a diﬀerence between ISIR data for these line items
and answers on the tax document, this could indicate the existence of a rollover. The school should resolve this conflict by
collecting relevant documentation.
Adapted from IRS Data Retrieval Tool.
Trainer’s Tidbit
Program Integrity Questions and Answers — Verification
www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
“VI-A4. ...to verify the amounts that should be included on the FAFSA, the institution must obtain a written statement
from the tax filer indicating the amount of the distribution that was excluded because it was an authorized IRS rollover.
Acceptable documentation could be a signed statement from the tax filer. Acceptable documentation could also be a
notation by the tax filer on the IRS Tax Return Transcript that includes the word “Rollover” beside the applicable item(s)
on the transcript, similar to the instructions provided for the IRS Form 1040 or 1040A. If the institution accepts as
documentation of the rollover a notation on the IRS Tax Return Transcript, it must ensure that the notation is signed and
dated by the tax filer. [Guidance issued 05/04/2012]”
9
IRS Request Flags
The Institutional Student Information Record contains two flags that indicate the applicant’s use of the DRT and whether
data was retrieved or altered. For dependent students, a separate code will be provided to report on the parent’s data
retrieval status.
2013-2014 Institutional Student Information Record
Student ID
999-99-9999
99
Last Name
XXXXXXXXXXXXXXXX
STEP FOUR (PARENTS) CONT.
Parents' Addl Financial Information 99999
Education Credits
99999
Child Support Paid
99999
Taxable Earnings Need-Based Emply 99999
Grant & Scholarship Aid Reported
99999
Special Combat Pay/Combat Pay
99999
Co-op Earnings
99999
Parents’ Untaxed Income
99999
Tax-Deferred Pension/Savings
99999
IRA Deductions and Payments
99999
Child Support Received
99999
Tax Exempt Interest Income
99999
Untaxed IRA Distributions
99999
Untaxed Portions of Pension
99999
Military or Clergy Allowances
99999
Veterans Noneducation Benefits
99999
Other Untaxed Income
99999
EFC
99999 X
STEP SIX (Q101)
School #1 999999
School #2 999999
School #3 999999
School #4 999999
School #5 999999
School #6 999999
Housing
Housing
Housing
Housing
Housing
Housing
#1
#2
#3
#4
#5
#6
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXX
STEP SEVEN (Q102 – Q106)
Date Application Completed
MM/DD/CCYY
Signed By
XXXXXXXXXXXXXXXXXXXX
Preparer's SSN
999-99-9999
Preparer's EIN
XXXXXXXX
Preparer's Signature
XXXXXX
OFFICE INFORMATION
Primary EFC Type
9
Secondary EFC Type
9
Processed Date
MM/DD/CCYY
STEP FIVE (STUDENT HH) (Q93 – Q100)
Transaction Data Source/Type:
Number Family Members
99
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Number in College
99
Source of Correction
XXXXXXXXX
Supplemental Security Income Benefits XXX
Federal School Code Indicator
999999
SNAP Benefits
XXX
Reject Override Codes:
Free/Reduced Price Lunch Benefits
XXX
A: B: C: G: J: K: N: W:
TANF Benefits
XXX
3: 12: 20: 21:
WIC Benefits
XXX
Assumption Override Codes:
Student/Spouse a Dislocated Worker?
XXX
1:
2:
3:
4:
5:
6:
---------------------------------------------------------------------------------------FAA INFORMATION
CPS Pushed ISIR Flag
XXX
Date ISIR Received
MM/DD/CCYY
Rejects Met:
99,99,99,99,99,99,99
Verification Flag
X
Verification Tracking Flag
XXXX
Professional Judgment
XXXXXX
Dependency Override
XXXXXXXXXXXXXXXXXXX
Transaction Receipt Date
MM/DD/CCYY
ETI
9
Reprocessing Code
XX
Correction # Applied To
99
Processed Record Type
X
Application Receipt Date
MM/DD/CCYY
Pell Elig Flag
Primary EFC
Mon 1 99999 Mon
Mon 2 99999 Mon
Mon 3 99999 Mon
Mon 4 99999 Mon
Mon 5 99999 Mon
Mon 6 99999
7
8
10
11
12
X
99999
99999
99999
99999
99999
99999
High School Flag
X
Student IRS Req Flag
XX
Parent IRS Req Flag
XX
Auto Zero EFC Flag
XXX
EFC Change Flag XXXXXXXX
SNT Flag
XXX
Secondary EFC
Mon 1 99999 Mon
Mon 2 99999 Mon
Mon 3 99999 Mon
Mon 4 99999 Mon
Mon 5 99999 Mon
Mon 6 99999
7
8
10
11
12
Intermediate
TI
9999999
ATI 9999999
STX 9999999
EA
9999999
IPA 9999999
AI
9999999
CAI 9999999
DNW 9999999
NW
9999999
APA 9999999
99999
99999
99999
99999
99999
99999
Rejected Status Change Flag
Verification Selection Flag
Special Circumstance Flag
X
X
X
Values
PCA 9999999
AAI 9999999
TSC 9999999
TPC 9999999
PC
9999999
STI 9999999
SATI 9999999
SIC 9999999
SDNW 9999999
SCA 9999999
FTI 9999999
Duplicate SSN Flag
XXX
Address Only Correction X
SAR C Change Flag
X
Match Flags: SSN 9 SSA
DHS
SS N NSLDS 9 VA
DHS Sec. Conf. X
Father SSN 9
DHS Verification #999999999999999 SS Registration Flag
Mother SSN 9
NSLDS Transaction Number
9
NSLDS Database Results Flag 9
DOD X
Comments:
999,999,999,999,999,999
*=assumption h=highlight flag #=corrected this trans @=corrected previous trans
Page 3 of 6
Provided from 2013-2014 ISIR Guide, p. E-4.
NOTES
10
To determine whether an application contains unaltered IRS data, look for code “02” in the IRS Request Flag field of the
“FAA Information” section of the ISIR. This is the only status that permits the school to consider the data that was retrieved
from the IRS as suﬃciently documented, rather than requiring applicants to provide tax transcripts. Schools should
continue to review subsequent ISIRs to determine if the Request Flag Value changes on new transactions, which may
warrant requesting additional documentation from the applicant.
2013-2014 Request Flag Values
Code
Description
Blank
IRS Data Retrieval Tool not available in the application method utilized by the student (for example, paper
FAFSA, EDE, or FAA Access to CPS Online).
00
Not eligible to use the IRS Data Retrieval Tool and was therefore not presented with the option to use it in
FAFSA on the Web.
01
Presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web and elected to use it, but
did not transfer IRS data into the FAFSA.
02
IRS data was transferred from the IRS and was not changed by the user prior to submission of an application
or correction.
03
IRS data was transferred from the IRS and changed by the user prior to submission of an application or
correction.
04
IRS data was transferred from the IRS and then changed by the user on a subsequent transaction.
05
Presented with the option to use the IRS Data Retrieval Tool in FAFSA on the Web, but did not elect to use it.
06
IRS data was transferred from the IRS, but a subsequent change made the student or parent ineligible to use
the IRS Data Retrieval Tool.
Provided from 2013-2014 ISIR Guide, p. 32.
NOTES
11
IRS Tax Transcripts
Upon request, the IRS provides tax filers with transcripts of their federal income tax returns. Increased reliance on tax
transcripts to validate FAFSA information means financial aid administrators need to be familiar with how these
documents can be obtained by students and parents, and how to review the information they contain.
Typically, transcripts are available for the current and past three years. The IRS makes two types of transcripts available:
u
Tax Return Transcript: Provides original answers for most line items on the tax return.
u
Tax Account Transcript: Provides some of the information found on a tax return transcript, along with any
adjustments made by the tax filer or the IRS after the original return was filed.
Requesting Tax Transcripts
There are several ways tax filers can request a tax transcript, most of which do not involve payment of a fee to the IRS.
Tax Transcript Output Document
Request Method
Where?
What?
How?
When?
Direct to Third
Party?
Online
www.irs.gov
Paper
Mailed
5-10 days
No
Telephone
(800) 908-9946
Paper
Mailed
5-10 days
No
IRS2Go Mobile App
www.irs.gov
Paper
Mailed
5-10 days
No
IRS Form 4506T-EZ
www.irs.gov/pub/irs
-pdf/f4506tez.pdf
Paper
Mailed
5-10 days
Yes
Trainer’s Tidbit
Program Integrity Questions and Answers — Verification
www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
“DOC-Q14. What tax information should an institution use when both the IRS Data Retrieval Tool is used and an IRS Tax
Return Transcript is obtained?
DOC-A14. Institutions are not required to obtain an IRS Tax Return Transcript to complete verification for individuals
who successfully utilized the IRS DRT. If an institution obtains a copy of a tax filer’s IRS Tax Return Transcript, any
amount(s), including the “per computer” amount(s), on the transcript that is diﬀerent from the amount reported on the
FAFSA by $25 or more must be corrected on the FAFSA through CPS. However if an institution is required to submit any
change through CPS as a result of verification it must submit all changes, including amounts that are below the $25
tolerance. (Sections 668.16(f ), 668.57(a), and 668.59(a)(2)).” [Guidance issued 09/13/2012]
NOTES
12
Acceptable Documentation
34 CFR 668.57.
Federal Register Vol. 77, No. 134, p. 41173-41176.
Dear Colleague Letter GEN-12-11.
2013-2014 FSA Handbook, Application and Verification Guide.
Acceptable documentation requirements can be divided into four categories non-income related items, non-tax filers, tax
filers without special circumstances and tax filers with special circumstances.
Non-Income Related Items
Applicants selected for verification may be expected to document answers provided on the FAFSA regarding household
size, number in college, child support paid and the receipt of SNAP benefits. New for the 2013-2014 award year,
applicants also may need to verify their high school completion or provide documentation of identity and a Statement of
Educational Purpose.
Item
Verification
Tracking Acceptable Documentation
Flag
Signed statement from the applicant (and one parent, if the applicant is dependent) listing
the name and age of each household member and the relationship to the applicant.
Not required when:
Household
Size
Number in
College
V1
V5
V1
V5
u
Dependent student lists 2, and parent is single, divorced, separated or widowed.
u
Dependent student lists 3, and parents are married.
u
Independent student lists 1, and student is single, divorced, separated or widowed.
u
Independent student lists 2, and student is married.
Signed statement from the applicant (and one parent, if the applicant is dependent) listing
the name and age of each household member attending a Title IV-eligible school at least
half time for the 2013-2014 award year, and the name(s) of the applicable school(s).
Not required when number in college is 1.
If the school believes information from the FAFSA or the signed statement is inaccurate, it must
obtain a statement from each listed school unless the household member is not yet registered
or will attend the applicant’s school.
Signed statement from applicant (or parent, if the applicant is dependent) listing:
Child
Support
Paid*
V1
V3
V4
V5
SNAP
(Food
Stamps)*
V1
V2
V4
V5
u
Name of the individual who paid the support.
u
Name of the child support recipient.
u
Name(s) of the child or children for whom support was paid.
u
Amount of support paid during the calendar year.
If the school believes information provided is inaccurate, it must obtain documentation such as
a copy of a separation agreement/divorce decree showing the amount to be paid, a statement
from the child support recipient showing the amount paid, or copies of cancelled checks or
money order receipts.
Signed statement from the applicant (or parent, if the applicant is dependent) certifying
that the applicant or another household member received Food Stamps in calendar year
2011 and/or 2012.
If the institution has reason to believe the signed statement is inaccurate, it must obtain
documentation from the applicable issuing agency.
* Information must be verified if reported on the FAFSA.
13
Item
Verification
Tracking Acceptable Documentation
Flag
Documentation of one of the following (high school diploma, recognized equivalent
or homeschool credential):
u
Copy of the applicant’s high school diploma or final high school transcript that
shows the date the applicant completed secondary school, or alternative
documentation if neither of these is available.
u
Copy of one of the recognized equivalents of a high school diploma:
– General Educational Development certificate.
High School
Completion
Status
– Certificate recognized by the state as an equivalent to a diploma.
V4
V5
– Academic transcript showing successful completion of at least a two-year
program fully acceptable toward a bachelor’s degree.
New for 2013-2014
– Documentation that the student excelled in high school if the student did not
complete high school and enrolls in at least an associate degree program.
u
Copy of homeschool documentation:
– Transcript signed by the parent or guardian documenting the successful
completion of secondary education, listing the courses completed by the student;
OR
– State-issued homeschool certification credential.
Each applicant must provide in person to an oﬃcial authorized by the school the
following documentation:
u
Government-issued photo identification*, such as a driver’s license, other stateissued ID or passport; AND
u
Signed Statement of Educational Purpose** for the 2013-2014 award year.
For documentation presented in person, the school must maintain an annotated
copy of the ID* provided by the student including:
Identity/
Statement of
Educational
Purpose
New for 2013-2014
V4
V5
u
Date the identifying document was received; AND
u
Name of the school oﬃcial that obtained the documentation.
If an applicant is unable to provide the information in person, the applicant must
provide the following to the school:
u
Copy of a government-issued photo identification*, such as a driver’s license, other
state-issued ID or passport; AND
u
Original notarized Statement of Educational Purpose** signed by the applicant for
the 2013-2014 award year.
* It is against federal law to photocopy a military ID. Therefore, a military ID may not be
used for this purpose.
** Schools must use the EXACT language provided by the Department in the Statement Of
Educational Purpose for students in the V4 or V5 Verification Tracking Groups. See
Appendix A.
14
Non-Tax Filers
When completing the FAFSA, students (and parents of dependent students) who indicate they will not file federal income
tax returns will be required to aﬃrm that they have not filed a federal income tax return and are not required by the
Internal Revenue Service regulations to do so. If selected for verification, and if they earned any income during 2012, they
will be required to provide the following documentation.
Item
Verification
Tracking Acceptable Documentation
Flag
Income
Earned from
Work
V1
V5
u
Copy of a 2012 W-2 Form for each source of employment AND
u
Signed statement certifying the applicant has not filed and is not required to file taxes
for 2012; AND
u
Signed statement indicating sources and amounts of income earned from work in
2012 not listed on a W-2 Form.
If the applicant is unable to obtain the required W-2 Form(s) in a timely manner, the school
instead may accept a signed statement listing the source and amount of income earned
from work, and the reason the W-2 Form(s) is not available.
2012 W-2 Form
According to the Department's Customer Care and Research Center, the amount found in box 1 of the W-2 form should
be used for income earned from work. The W-2 form may also reveal sources of untaxed income, such as payments to taxdeferred pension and savings plan amounts reported in boxes 12a through 12d, coded D, E, F, G, H and S.
NOTES
15
Tax Filers Without Special Circumstances
When using FAFSA on the Web, students (and/or parents of dependent students) who indicate they filed federal income
tax returns will be encouraged to retrieve their IRS income data to populate the appropriate FAFSA fields. If IRS data is not
retrieved, or if it was retrieved and then changed, applicants selected for verification will be asked to provide
documentation obtained from the IRS.
Item
Verification
Tracking Flag
Acceptable Documentation
No documentation is required if the applicant (and/or the parent, if the
applicant is dependent):
AGI
U.S. Tax Paid
u
Untaxed IRA Distributions
Untaxed Pensions
Education Credits
IRA Deductions
V1
V5
Used the IRS Data Retrieval Tool and the information is unchanged (02
IRS Request Flag).
Tax transcript is required if the applicant (and/or the parent, if the
applicant is dependent):
u
Did not or could not use the IRS Data Retrieval Tool; OR
u
Did use the tool but subsequently changed any of the data.
Tax-Exempt Interest
Trainer’s Tidbit
Tax Data
One common area where conflicting information arises is through the school’s review of an applicant’s tax returns.
According to the 2013-2014 Federal Student Aid Handbook, “[Financial aid administrators] must have a fundamental
understanding of relevant tax issues that can considerably aﬀect the need analysis” (p. AVG-117).
ED refers financial aid administrators to specific pages in IRS Publication 17 as a resource for understanding basic tax
law and detecting when conflicting tax information aﬀects Title IV eligibility.
Financial aid administrators are required to know:
u
Whether a person was required to file a tax return.
u
What the correct filing status for a person should be.
u
That an individual cannot be claimed as an exemption by more than one person.
NOTES
16
Tax Filers With Special Circumstances
ED describes certain applicants as having special circumstances if they:
u
Filed a joint return, but now are:
– Separated, divorced or widowed.
– Married to someone other than the individual included on the joint return.
u
Were granted a tax filing extension by the IRS.
u
Cannot obtain a tax transcript from the IRS.
Tax Filers Who Filed a Joint Return but Now Are Separated, Divorced,
Widowed or Remarried
Tax filers could qualify to file a joint income tax return based on marital status as of December 31 of the tax year and
subsequently indicate a diﬀerent marital status by the time they are applying for federal financial aid. In this case, it is not
appropriate to retrieve IRS data. Instead, these tax filers should skip the IRS data retrieval tool, making sure to correctly
reflect their income, taxes paid and untaxed income.
Documentation
When selected for verification, these applicants will be expected to provide:
u
A 2012 tax transcript listing the tax filer’s information for the applicable tax year; AND
u
W-2 Forms if the student (or the dependent student’s parent) no longer is married to the individual on the joint return,
for each employment source for the student or dependent student’s parent(s) whose income is used to calculate the
applicant’s Expected Family Contribution.
– If the individual is self-employed or if a W-2 Form is not available, a school may accept a signed statement of the AGI
and taxes paid. The W-2 Forms will serve to document the portion of any earned income which belongs to the tax filer.
The school then will be responsible for adjusting the AGI and taxes paid using the documentation received.
Trainer’s Tidbit
Using a Joint Return to Figure Individual AGI and Taxes Paid
2013-2014 FSA Handbook, Application and Verification Guide, p. AVG-88.
"If the filer of a joint return has become widowed, divorced, or separated since filing the return, it may be necessary to
determine the individual’s income and taxes paid using the joint return and W-2 forms."
Item
AGI
Taxes
Paid
Documentation
Adjustment
W-2 Forms
Calculate the individual's AGI using income amounts from W-2 Forms and add that
to any other income that can be extracted from the joint return. Interest or
dividends paid from joint accounts or joint business income or loss used to
calculate the AGI should be assessed at 50 percent.
IRS Tax Forms
Calculate new taxes paid either using the IRS tax tables (preferred method) or by
using a proportional calculation:
(Individual AGI / Joint AGI) x Joint taxes paid = New individual taxes paid
17
Tax Filers Granted a Tax Filing Extension by the IRS
Some tax filers may apply to the IRS for an extension of the deadline to file their federal income tax returns. Typically, a
six-month extension is requested using IRS Form 4868, though the IRS may approve longer extension periods. If the tax
return has not been filed by the time the tax filer is completing the FOTW, no tax data will be available and the tax filer
will not be able to use the IRS data retrieval process.
Schools cannot delay the verification processing because a tax-filing extension was granted. If an extension is granted,
the school must complete verification using alternative documentation:
u
Copy of Form 4868 or a copy of the IRS approval of the extension beyond the six-month period.
– An applicant’s U.S. taxes paid will come from Line 4 of the IRS Form 4868.
u
Copy of a W-2 Form for each source of employment received in the base year by the individual granted the extension or
if self-employed, a signed statement certifying the 2012 AGI and tax paid.
– An applicant’s AGI will come from Box 1 of the W-2 Form (or signed statement).
Schools have the option of collecting tax data from extension filers once their federal income tax returns have been filed
with the IRS. Any tax transcripts or tax returns received by the school must be used to re-verify the income information.
Individuals for Whom a Transcript Cannot be Provided or Located
2013-2014 FSA Handbook, Application and Verification Guide, Ch. 4.
The following table outlines ED’s guidance for when an applicant (and/or parents, if the applicant is dependent) selected
for verification cannot obtain a tax transcript from the Internal Revenue Service.
18
Acceptable Documentation When a Transcript Cannot be Provided
Issue
Acceptable Documentation
In lieu of a tax transcript, victims of identity theft may provide schools with the following
documentation:
Group 1 — victims of identify theft with an IRS Form 14039 must submit both of the following:
Identity Theft
u
A copy of the signed Form 14039 that was submitted to the IRS AND
u
A signed copy of the paper tax return.
Group 2 — victims of identity theft without an IRS Form 14039 must submit either of the following:
u
A signed copy of the paper tax return AND a copy of a filed police report OR
u
A signed copy of the paper tax return AND a signed and dated statement that:
1) he or she was the victim of identity theft,
2) the IRS is investigating the matter, and
3) he or she either did not keep a copy of Form 14039 or the IRS did not require the individual to
submit the form.
For individuals who filed amended returns, schools must obtain:
Amended
Returns
u
A signed copy of the IRS Form 1040X that was filed with the IRS; AND
u
A signed copy of the original tax return, original tax data on a tax return transcript, Record of
Account Transcript, or Return Transcript for Taxpayer.
Alternative documentation is acceptable if an attempt to obtain a tax transcript is unsuccessful and
the following documentation is collected by the school.
If the transcript request was made using a paper form, the filer must sign and submit a copy
of the:
Unsuccessful
Requests for IRS
Transcripts*
u
Filed tax return; AND
u
IRS response informing the filer the request was unsuccessful; AND
u
Form 4506T-EZ or 4506-T with third-party information provided.
If the transcript request was made online, the filer must sign and submit a copy of the:
u
Filed tax return; AND
u
Print screen from the oﬃcial IRS website indicating the request was unsuccessful; AND
u
Form 4506T-EZ or 4506-T with third party information provided.
If the accuracy of the tax return information is not questionable, the school completes verification and
places the signed copy of Form 4506 in the applicant’s file. If the school has reason to believe that the tax
return information is inaccurate, Form 4506 must be sent to the IRS and the school must wait for the
return of either a transcript or confirmation that the transcript is not available for the filer before
proceeding with verification.
Foreign Tax
Returns
For individuals who filed foreign tax returns and cannot obtain a tax transcript, the school must
collect signed copies of the foreign returns or other information listing similar income and tax
information, converted to U.S. dollars. If the individual is not required to file taxes under that nation’s
process, the school should accept a signed statement certifying income and taxes paid, if any, for the
applicable period.
If the individual filed a tax return with Puerto Rico, Guam, American Samoa or the Commonwealth of
the Northern Mariana Islands, the school should accept a signed copy of the applicable tax return.
U.S. Territory or
Commonwealth If the individual filed a tax return with the Republic of the Marshall Islands, the Republic of Palau or
the Federated States of Micronesia (the Freely Associated States), the school should accept a signed
Tax Returns
copy of the individual’s wage and tax statement for each employer, in addition to a signed statement
that lists all income and taxes for the tax year.
* This guidance only is eﬀective through the end of the 2012-2013 award year.
19
Corrections
2013-2014 FSA Handbook, Application and Verification Guide, p. AVG-86.
Documentation received for verification purposes may indicate that a correction is required to the applicant’s FAFSA data.
The 2013-2014 Application and Verification Guide states, “For students who are selected for verification and receiving
subsidized student aid, changes that result to any non-dollar item and to any dollar item of $25 or more must be
submitted for processing” p. AVG-86. Schools verifying students only receiving non-need based federal aid also are
encouraged, but not required, to submit corrections.
Corrections for applicants not selected for verification must be made for any errors that would change the EFC or aﬀect
the student's eligibility for aid.
IRS Data Retrieval and FOTW Corrections
34 CFR 668.57(a)(2).
Dear Colleague Letter GEN-11-03.
Applicants may correct FAFSA data using the IRS Data Retrieval Tool in lieu of submitting alternate documentation, such
as a tax transcript. If the school previously requested alternate documentation, the unaltered data can serve to document
the answers on the application instead and the request for alternate documentation could be cancelled. If
documentation is inadvertently received, however, it still must be reviewed for conflicting information.
Trainer’s Tidbit
Marital Status Update
Program Integrity Questions and Answers — Verification.
www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
“UPD-Q1. When an FAA updates an applicant’s marital status ‘to address an inequity or to reflect more accurately the
applicant's ability to pay’ under §668.55(c), what other information must also be updated?
UPD-A1. Usually when the applicant’s marital status changes, there is no updating of the applicant’s dependency status
or, for applicants selected for verification, household size or number in college. However, under §668.55(c), an FAA may
update the applicant's FAFSA information due to a change in the applicant’s marital status if the FAA determines it is
necessary to address an inequity or to reflect more accurately the applicant’s ability to pay.
If an FAA chooses to exercise the authority allowed under §668.55(c), all relevant FAFSA information must be updated
to be consistent with the new marital status, including the spouse’s financial information, for applicants whose
dependency status changes, or for applicants who are selected for verification. The FAA updates these applicants’ marital
status on a case-by-case basis and must document the reason for the decision.
Likewise, for an applicant who was independent only because he or she was married when the FAFSA was first
completed, if the FAA changes the applicant’s marital status to unmarried, making the applicant dependent, the FAFSA
must be updated with parental information. [Section 668.55(c)] [Guidance issued 01/26/2012; revised 03/13/2012]”
NOTES
20
Disbursement Considerations
In some cases, schools disburse funds prior to verification either through interim disbursements or because the
application was not selected prior to disbursement.
Interim Disbursements
34 CFR 668.58.
Some schools choose to provide interim disbursements before verification is complete. Interim disbursements are
allowed only if the school believes there are no errors on the FAFSA data provided. The school is liable for any payments
made if verification remains incomplete by the school’s deadline or overpayments resulting from verification. Program
limitations exist for interim disbursements. Please see the 2013-2014 Federal Student Aid Handbook, Application and
Verification Guide for additional details.
Selection After Disbursement
2013-2014 FSA Handbook, Application and Verification Guide, p. AVG-87.
Situations exist when students’ applications are selected for verification after disbursements were made on a previous,
unselected transaction. In these cases, no further disbursements are allowed until verification is complete. The student is
responsible for any overpayment received through verification, with the exception of Staﬀord loans received and Federal
Work-Study money earned.
Trainer’s Tidbit
Verification Selection Flag
2013-2014 ISIR Guide, p. 28.
“The Verification Selection Flag field on the ISIR identifies a correction transaction that is selected for verification, if the
transaction being corrected was not selected for verification. This field is always blank on an initial transaction. This flag
is set to Y only on the correction transaction that is initially selected for verification. If the Verification Selection Flag is
set from the previous transaction, this field is blank. The data for this field comes from the Verification Selection Change
Flag field in the ISIR record layout.”
NOTES
21
Case Study
Ethan James, an independent student at Gardenway University, completed a FAFSA for the upcoming academic year. The
CPS selected his application for verification and he has a Verification Tracking Flag of V1. Ethan did not use the Data
Retrieval Tool.
STEP 1:
Complete the verification assessment document using information found on the following items:
u
Verification Worksheet (pp. 24-27).
u
Appendix B:
– Tax Return Line Item chart (p. 37).
– Tax Transcript for Ethan and Miranda James (pp. 49-54).
u
Appendix D: Federal Tax Return: Eligible to File a 1040A/EZ? (p. 57).
STEP 2:
Compare the information found with the ISIR data provided on the verification assessment document and indicate what
action (if any) should be taken to resolve any items for which a discrepancy is found.
NOTES
22
Verification Assessment Document
Item
ISIR
Data
Household size
3
Number in college
1
Child support paid
$4,380
SNAP
Document
Data
Action/Notes
N/A
AGI
$45,632
U.S. tax paid
$1,348
Untaxed IRA distributions
$0
Untaxed pensions
$0
Education credits
$660
IRA deductions
$0
Tax-exempt interest
$0
* Type of return filed
1040
* Eligible to file 1040A/EZ?
Yes
* Wages earned (student)
$8,108
* Wages earned (spouse)
$25,000
* Denotes information which should be reviewed for potential conflicting information.
23
StudentID:
9 0 1 2 3 4 5
Gardenway University
Financial Aid Office
Verification Worksheet
Your 2013-2014 Free Application for Federal Student Aid was selected for verification. The Department of Education
authorizes Gardenway University to compare information submitted on your FAFSA with copies of your 2012 tax
information and other documents collected. If there are discrepancies between the information submitted on your FAFSA
and these other documents, corrections will be made on your behalf.
Please complete each section below and attach all required forms.
SECTION A: Number of Household Members and Number in College
List below the people in the student’s household. Include:
The student.
The student’s spouse, if the student is married.
The student’s or spouse’s children if the student or spouse will provide more than half of their support from
July 1, 2013, through June 30, 2014, even if the children do not live with the student.
Other people if they now live with the student and the student or spouse provides more than half of their
support and will continue to provide more than half of their support through June 30, 2014.
For any household member who will be enrolled at least half time in a degree, diploma, or certificate program
at an eligible postsecondary educational institution any time between July 1, 2013, and June 30, 2014, include
the name of the college.
If more space is needed, provide a separate page with the student’s name and ID number at the top.
Full Name
Ethan James
Miranda James
Bryan James
Sara Soltimel
Age
Relationship
College
39
38
13
16
Self
Spouse
Son
Step-daughter
Will be Enrolled at
Least Half Time
(Yes or No)
Note: We may require additional documentation if we have reason to believe that the information regarding the
household members enrolled in eligible postsecondary educational institutions is inaccurate.
Page1of5
24
StudentID:
9 0 1 2 3 4 5
SECTION B: Child Support Paid
The student or spouse, who is a member of the student’s household, paid child support in 2012. List below the
names of the persons who paid the child support, the names of the persons to whom the child support was
paid, the names of the children for whom the child support was paid, and the total annual amount of child
support that was paid in 2012 for each child.
If more space is needed, provide a separate page that includes the student’s name and ID number at the top.
Name of Person Who
Paid Child Support
Miranda James
Name of Person to Whom
Child Support was Paid
Name of Child for Whom
Support Was Paid
Michael Soltimel
Sara Soltimel
Amount of Child
Support Paid in
2012
$4,380
Note: If we have reason to believe that the information regarding child support paid is not accurate, we may
require additional documentation, such as:

A copy of the separation agreement or divorce decree that shows the amount of child support to be
provided;

A statement from the individual receiving the child support certifying the amount of child support received;
or

Copies of the child support payment checks or money order receipts.
Page2of5
25
StudentID:
9 0 1 2 3 4 5
SECTION C: Verification of 2012 IRS Income Tax Return Information for Student Tax Filers
Important Note: The instructions below apply to the student and spouse, if the student is married. Notify the
financial aid office if the student or spouse filed separate IRS income tax returns for 2012 or had a change in
marital status after the end of the 2012 tax year on December 31, 2012.
Instructions: Complete this section if the student and spouse filed or will file a 2012 IRS income tax return(s).
The best way to verify income is by using the IRS Data Retrieval Tool (IRS DRT) that is part of FAFSA on the
Web at FAFSA.gov. In most cases, no further documentation is needed to verify 2012 IRS income tax return
information that was transferred into the student’s FAFSA using the IRS DRT if that information was not
changed.
In most cases, for electronic filers, 2012 IRS income tax return information for the IRS DRT is available within
2–3 weeks after the 2012 electronic IRS income tax return has been accepted by the IRS. Generally, for filers
of 2012 paper IRS income tax returns, the 2012 IRS income tax return information is available for the IRS DRT
within 8–11 weeks after the 2012 paper IRS income tax return has been received by the IRS. Contact the
financial aid office if more information is needed about using the IRS DRT.
Check the box that applies:
The student has used the IRS DRT in FAFSA on the Web to transfer 2012 IRS income tax return
information into the student’s FAFSA.
The student has not yet used the IRS DRT in FAFSA on the Web, but will use the tool to transfer 2012
IRS income tax return information into the student’s FAFSA once the 2012 IRS income tax return has
been filed.
X
The student is unable or chooses not to use the IRS DRT in FAFSA on the Web, and instead will provide
the school a 2012 IRS Tax Return Transcript(s). (signature not required)
To obtain a 2012 IRS Tax Return Transcript, go to www.IRS.gov and click on the “Order a Return or
Account Transcript” link, or call 1-800-908-9946. Make sure to request the “IRS Tax Return Transcript”
and not the “IRS Tax Account Transcript.” Use the Social Security Number and date of birth of the first
person listed on the 2012 IRS income tax return, and the address on file with the IRS (normally this will
be the address used on the 2012 IRS income tax return). In most cases, for electronic filers, a 2012 IRS
Tax Return Transcript may be requested from the IRS within 2–3 weeks after the 2012 IRS income tax
return has been accepted by the IRS. Generally, for filers of 2012 paper IRS income tax returns, the 2012
IRS Tax Return Transcript may be requested within 8–11 weeks after the 2012 paper IRS income tax
return has been received by the IRS.
If the student and spouse filed separate 2012 IRS income tax returns, 2012 IRS Tax Return Transcripts
must be provided for both.
X Check here if a 2012 IRS Tax Return Transcript(s) is provided.
____
____ Check here if a 2012 IRS Tax Return Transcript(s) will be provided later.
Page3of5
26
StudentID:
9 0 1 2 3 4 5
SECTION D: Certifications and Signatures
WARNING: If you purposely give false or
misleading information you may be fined,
be sentenced to jail, or both.
Each person signing below certifies that all of the
information reported is complete and correct.
Ethan James
_______________________________________
Print Student’s Name
Ethan James
_______________________________________
Student’s Signature (Required)
05/15/2013
________________________
Date
_______________________________________
Spouse's Signature (Optional)
________________________
Date
Submit all completed forms and attachments either by email, fax, in person or by mail to:
Gardenway University Financial Aid Office
124 Main Street
Anaheim, CA 92804-1234
Phone: 555-123-4567
Fax: 555-123-4568
Page4of5
27
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Putting It To Work
The topics covered in this training session are conveyed in general terms to encompass learners from all types of
postsecondary institutions. You should consider how the concepts covered in the training session apply to your school.
Schools often are given flexibility in administering and applying guidelines to certain federal student aid programs. That’s
why it is essential that you discuss these items (shown below) with your supervisor.
Your supervisor can give you institution-specific guidelines on how the material we discussed in this training session can
be applied to your job.
1. Does my school have written verification policies and procedures? Where are they? When were they last updated?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
2. How does my school notify students who have been selected for verification?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
3. Can I select a student for verification? If so, when would this selection be appropriate?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
4. Is my school a Quality Assurance school? If so, what is our policy for selecting students for federal verification?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
5. How does my school’s financial aid management system display students who are selected for verification?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
6. What forms has my school created to collect verification information? Do we use the suggested text provided by the
Department?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
7. How can I determine if my school has requested verification documents from a student?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
29
8. At what point in my school’s packaging process do we verify students?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
9. What are the specific steps my school performs to complete verification for students?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
10. How is our financial aid management system updated when verification is complete?
_________________________________________________________________________________________________
_________________________________________________________________________________________________
_________________________________________________________________________________________________
30
Trainer’s Toolkit
The Trainer’s Toolkit is a listing of websites and reference material directly related to Federal Verification.
References, Resources and Websites
U.S. Department of Education
Program Integrity Questions and Answers Website — Verification
www2.ed.gov/policy/highered/reg/hearulemaking/2009/verification.html.
Federal Register
Free Application for Federal Student Aid (FAFSA); 2013–2014 Award Year.
Vol. 77, No. 134.
July 12, 2012.
http://ifap.ed.gov/fregisters/attachments/FR071212FASFA.pdf.
Dear Colleague Letter GEN-12-11
Subject: 2013-2014 Award Year: FAFSA Information to be Verified, and Acceptable Documentation.
July 17, 2012.
http://ifap.ed.gov/dpcletters/GEN1211.html.
Electronic Announcements
Subject: Acceptable IRS Documentation for 2013-2014 Award Year Verification.
March 1, 2013.
http://ifap.ed.gov/eannouncements/030113AcceptableIRSDocumentation20132014AYVerification.html.
Subject: 2013-2014 Verification-Suggested Text.
Jan. 18, 2013.
http://ifap.ed.gov/eannouncements/011813VerificationSuggestedText1314.html.
Subject: 2013-2014 Summary of Changes for the Application Processing System Guide.
Nov. 8, 2012.
http://ifap.ed.gov/sumchngsappsys/110812ChangesAppProcessSysGuide1314.html.
Subject: Plans for 2013-2014 Verification Worksheets.
Nov. 1, 2012.
http://ifap.ed.gov/eannouncements/110112Plansfor1314VerificationWorksheets.html.
Subject: Limited Circumstances When a Signed Copy of a Tax Return or Other Documentation is Acceptable for
Completing Verification.
Aug. 21, 2012.
http://ifap.ed.gov/eannouncements/082112LimitedCircumstancesWhenSignedCopyofTaxReturnisAcceptable.html.
2013-2014 Federal Student Aid Handbook
Application and Verification Guide.
Chapter 1: Filling Out the FAFSA.
Chapter 4: Verification, Updates, and Corrections.
Chapter 5: Special Cases.
http://ifap.ed.gov/ifap/byAwardYear.jsp?type=fsahandbook&awardyear=2013-2014.
2013-2014 Free Application for Federal Student Aid
www.fafsa.ed.gov/fotw1314/pdf/PdfFafsa13-14.pdf.
Completing the FAFSA
www.studentaid.ed.gov/sites/default/files/2013-14-completing-fafsa.pdf.
2013-2014 SAR Comment Codes and Text Guide
http://ifap.ed.gov/sarcommcodestxt/1314SARCommCodesTextGuideFeb2013Update.html.
31
2013-2014 ISIR Guide
http://ifap.ed.gov/isirguide/1314ISIRGuideFeb2013Update.html.
USA Funds
USA Funds Ask Policy
USA Funds Ask PolicySM is a resource for schools and lenders who have questions about specific policies or other issues
related to the full range of Title IV federal student aid.
www.usafunds.org/AskPolicy.
Online Course #203 — Verification
www.usafundstraining.org.
Verification Resources
Verification resources to help schools comply with federal regulations for verifying students’ Free Application for Federal
Student Aid information.
www.usafunds.org/schools/Pages/Verification.aspx.
Electronic Glossary of Terms and Definitions
www.usafunds.org/elearning/glossary/glossary.html.
Other Resources
Internal Revenue Service
Form 4506-T.
Form 4506T-EZ.
Form W-2.
Form 1099-R.
www.irs.gov.
NCHER Integrated Higher Education Act of 1965, as Amended
Provided by USA Funds.
www.usafunds.org/schools/Pages/Policy.aspx.
NCHER Integrated Regulations
Provided by USA Funds.
www.usafunds.org/schools/Pages/Policy.aspx.
32
Appendices
Appendix A
2013-2014 Required Text — Identity and Statement of Educational Purpose
Appendix B
Comparison of 2012 Tax Return and Tax Transcript Data
Appendix C
Criteria for 2013-2014 Simplified Needs Formulas and Automatic-Zero EFC Calculation
Appendix D
2012 Federal Tax Year: Eligible to file a 1040A/EZ?
Appendix E
IRS Transcript Request Forms
Appendix F
Policies and Procedures — Verification
Appendix G
Deadlines and Consequences — Verification
Appendix H
Case Study Answer
33
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Appendix A
2013-2014 Required Text – Identity and Statement of Educational Purpose
APPENDIX A
2013-2014 Required Verification Text
(Note: Institutions must use the exact language in the Statement of Educational
Purpose as provided below)
Identity and Statement of Educational Purpose
(To Be Signed at the Institution)
The student must appear in person at ________________________________________ to
(Name of Postsecondary Educational Institution)
verify his or her identity by presenting a valid government-issued photo identification (ID), such as,
but not limited to, a driver’s license, other state-issued ID, or passport. The institution will maintain
a copy of the student’s photo ID that is annotated with the date it was received and the name of the
official at the institution authorized to collect the student’s ID.
In addition, the student must sign, in the presence of the institutional official, the following:
Statement of Educational Purpose
I certify that I _____________________________ am the individual signing this
(Print Student’s Name)
Statement of Educational Purpose and that the federal student financial assistance
I may receive will only be used for educational purposes and to pay the cost of attending
_________________________________________ for 2013-2014.
(Name of Postsecondary Educational Institution)
_________________________________________
_______________
(Student’s Signature)
(Date)
______________________
(Student’s ID Number)
Source: http://ifap.ed.gov/eannouncements/011813VerificationSuggestedText1314.html.
35
APPENDIX A
2013-2014 Required Verification Text
(Note: Institutions must use the exact language in the Statement of Educational
Purpose as provided below)
Identity and Statement of Educational Purpose
(To Be Signed With Notary)
If the student is unable to appear in person at ______________________________________
(Name of Postsecondary Educational Institution)
to verify his or her identity, the student must provide:
(a) A copy of the valid government-issued photo identification (ID) that is acknowledged
in the notary statement below, such as but not limited to a driver’s license, other stateissued ID, or passport; and
(b) The original notarized Statement of Educational Purpose provided below.
Statement of Educational Purpose
I certify that I _____________________________ am the individual signing this
(Print Student’s Name)
Statement of Educational Purpose and that the federal student financial assistance
I may receive will only be used for educational purposes and to pay the cost of attending
_________________________________________ for 2013-2014.
(Name of Postsecondary Educational Institution)
_________________________________________
_______________
(Student’s Signature)
(Date)
______________________
(Student’s ID Number)
Notary’s Certificate of Acknowledgement
State of _____________________________________________________________________
City/County of ______________________________________________________________
On_____________________, before me, __________________________________________,
(Date)
(Notary’s name)
personally appeared, _________________________________________, and provided to me
(Printed name of signer)
on basis of satisfactory evidence of identification __________________________________
(Type of government-issued photo ID provided)
to be the above-named person who signed the foregoing instrument.
WITNESS my hand and official seal _____________________________________________
(seal)
(Notary signature)
My commission expires on _________________________
(Date)
36
Appendix B
Comparison of 2012 Tax Return and Tax Transcript Data
FAFSA instructions direct applicants to obtain information from certain lines on IRS income tax returns, which diﬀer based
on whether the tax filer completed a Form 1040, 1040A or 1040EZ. For the most part, the instructions are able to identify
the relevant lines on the tax return by line number. These line item numbers do not appear on IRS tax transcripts. Instead,
each item is identified by name. When verifying FAFSA data using tax transcripts, it is important to identify the
correct answer for comparison.
The following pages contain sample tax returns for Hunter Davis (IRS Form 1040-EZ), Elizabeth Moore (IRS Form 1040-A),
and Ethan and Miranda James (IRS Form 1040), as well as sample IRS Tax Transcripts for these filers. Relevant line items
have been highlighted as follows:
Red: information to help cross-reference tax return line items with corresponding data on the tax return transcript.
Yellow: tax return line items that are required verification data elements for the 2013-2014 award year.
Blue: tax return line items listed in the FAFSA instructions, which should be reviewed for potential conflicting
information.
Tax Return Line Items for Verification
2012 1040EZ
2012 1040A
2012 1040
Tax-exempt interest income.
N/A
8b
8b
Untaxed portions of IRA distributions.
Excludes rollovers.
N/A
11a minus 11b
15a minus 15b
N/A
12a minus 12b
16a minus 16b
N/A
17
28 plus 32
4
21
37
Education credits.
N/A
31
49
U.S. tax paid.
10
35
55
Untaxed portions of pensions.
Excludes rollovers.
IRA/Keogh deductions.
AGI.
37
Sample IRS Form 1040EZ: Hunter Davis
Department of the Treasury—Internal Revenue Service
Income Tax Return for Single and
Joint Filers With No Dependents (99)
Form
1040EZ
Your first name and initial
2012
OMB No. 1545-0074
Your social security number
Last name
Hunter J.
Davis
If a joint return, spouse’s first name and initial
Last name
AAA AA AAAA
Spouse’s social security number
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
1629 Market Street
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Presidential Election Campaign
Oklahoma City, OK 73102
Foreign country name
Wages, salaries, and tips. This should be shown in box 1 of your Form(s) W-2.
Attach your Form(s) W-2.
1
7,000 00
2
Taxable interest. If the total is over $1,500, you cannot use Form 1040EZ.
2
45 00
3
Unemployment compensation and Alaska Permanent Fund dividends (see instructions).
3
4
5
Add lines 1, 2, and 3. This is your adjusted gross income.
If someone can claim you (or your spouse if a joint return) as a dependent, check
the applicable box(es) below and enter the amount from the worksheet on back.
4
7,045 00
5
5,950 00
a
6
7
8a
1,095 00
202 00
a
9
202 00
10
109 00
Income
1
Attach
Form(s) W-2
here.
6
7
8a
b
9
10
Payments,
Credits,
and Tax
11a
Refund
Have it directly
deposited! See
instructions and
fill in 11b, 11c,
and 11d or
Form 8888.
F
Paid
Preparer
Use Only
Routing number
A A A A A A A A A
a
d
Account number
B B B B B B B B B B B B B B B B B
ac
Type:
Checking
Savings
If line 10 is larger than line 9, subtract line 9 from line 10. This is
the amount you owe. For details on how to pay, see instructions.
Phone
no.
a
12
Yes. Complete below.
Personal identification
number (PIN)
a
93 00
11a
b
Designee’s
a
name
Sign
Here
Keep a copy for
your records.
If line 9 is larger than line 10, subtract line 10 from line 9. This is your refund.
If Form 8888 is attached, check here a
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Third Party
Designee
Joint return? See
instructions.
You
Spouse
If no one can claim you (or your spouse if a joint return), enter $9,750 if single;
$19,500 if married filing jointly. See back for explanation.
Subtract line 5 from line 4. If line 5 is larger than line 4, enter -0-.
This is your taxable income.
Federal income tax withheld from Form(s) W-2 and 1099.
Earned income credit (EIC) (see instructions).
Nontaxable combat pay election.
8b
Add lines 7 and 8a. These are your total payments and credits.
Tax. Use the amount on line 6 above to find your tax in the tax table in the
instructions. Then, enter the tax from the table on this line.
a
12
Amount
You Owe
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
Enclose, but do
not attach, any
payment.
Make sure the SSN(s)
above are correct.
c
No
a
Under penalties of perjury, I declare that I have examined this return and, to the best of my knowledge and belief, it is true, correct, and
accurately lists all amounts and sources of income I received during the tax year. Declaration of preparer (other than the taxpayer) is based
on all information of which the preparer has any knowledge.
Daytime phone number
Your occupation
Your signature
Date
1/31/2013 Student
Spouse’s signature. If a joint return, both must sign.
Print/Type preparer’s name
Firm’s name
Date
Preparer’s signature
(555) 405-5299
Spouse’s occupation
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
Date
a
Firm's EIN
Firm’s address a
Phone no.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see instructions.
38
a
Cat. No. 11329W
Form 1040EZ (2012)
Page 2
Form 1040EZ (2012)
Use this form
if
• Your filing status is single or married filing jointly. If you are not sure about your filing status, see instructions.
• You (and your spouse if married filing jointly) were under age 65 and not blind at the end of 2012. If you were born on
January 1, 1948, you are considered to be age 65 at the end of 2012.
• You do not claim any dependents. For information on dependents, see Pub. 501.
• Your taxable income (line 6) is less than $100,000.
• You do not claim any adjustments to income. For information on adjustments to income, use the TeleTax topics listed under
Adjustments to Income at www.irs.gov/taxtopics (see instructions).
• The only tax credit you can claim is the earned income credit (EIC). The credit may give you a refund even if you do not owe
any tax. You do not need a qualifying child to claim the EIC. For information on credits, use the TeleTax topics listed under
Tax Credits at www.irs.gov/taxtopics (see instructions). If you received a Form 1098-T or paid higher education expenses, you
may be eligible for a tax credit or deduction that you must claim on Form 1040A or Form 1040. For more information on tax
benefits for education, see Pub. 970.
• You had only wages, salaries, tips, taxable scholarship or fellowship grants, unemployment compensation, or Alaska
Permanent Fund dividends, and your taxable interest was not over $1,500. But if you earned tips, including allocated tips, that
are not included in box 5 and box 7 of your Form W-2, you may not be able to use Form 1040EZ (see instructions). If you are
planning to use Form 1040EZ for a child who received Alaska Permanent Fund dividends, see instructions.
Filling in your
return
If you received a scholarship or fellowship grant or tax-exempt interest income, such as on municipal bonds, see the
instructions before filling in the form. Also, see the instructions if you received a Form 1099-INT showing federal income tax
withheld or if federal income tax was withheld from your unemployment compensation or Alaska Permanent Fund dividends.
For tips on
how to avoid
common
mistakes, see
instructions.
Remember, you must report all wages, salaries, and tips even if you do not get a Form W-2 from your employer. You must also
report all your taxable interest, including interest from banks, savings and loans, credit unions, etc., even if you do not get a
Form 1099-INT.
Worksheet
for Line 5 —
Dependents
Who Checked
One or Both
Boxes
Use this worksheet to figure the amount to enter on line 5 if someone can claim you (or your spouse if married
filing jointly) as a dependent, even if that person chooses not to do so. To find out if someone can claim you as a
dependent, see Pub. 501.
(keep a copy for
your records)
Mailing
Return
A. Amount, if any, from line 1 on front .
.
.
.
.
7,000.00
.
+
300.00 Enter total a
B. Minimum standard deduction . . . . . . . . . . . . . . . . . . . .
C. Enter the larger of line A or line B here . . . . . . . . . . . . . . . . .
D. Maximum standard deduction. If single, enter $5,950; if married filing jointly, enter $11,900
E. Enter the smaller of line C or line D here. This is your standard deduction . . . . . . .
F. Exemption amount.
• If single, enter -0-.
• If married filing jointly and —
—both you and your spouse can be claimed as dependents, enter -0-.
—only one of you can be claimed as a dependent, enter $3,800.
G. Add lines E and F. Enter the total here and on line 5 on the front
. . . . . . . . .
.
.
.
.
}
7,300.00
A.
B.
C.
D.
E.
7,300.00
5,950.00
5,950.00
F.
0.00
. G.
950.00
5,950.00
If you did not check any boxes on line 5, enter on line 5 the amount shown below that applies to you.
• Single, enter $9,750. This is the total of your standard deduction ($5,950) and your exemption ($3,800).
• Married filing jointly, enter $19,500. This is the total of your standard deduction ($11,900), your exemption ($3,800), and
your spouse's exemption ($3,800).
Mail your return by April 15, 2013. Mail it to the address shown on the last page of the instructions.
Form 1040EZ (2012)
©
39
Sample Tax Transcript 1040EZ: Hunter Davis
This Product Contains Sensitive Taxpayer Data
Request Date: 02-09-2013
Response Date: 02-09-2013
Tracking Number: XXXXXXXXXXXX
Tax Return Transcript
SSN Provided: AAA-AA-AAAA
Tax Period Ending: Dec. 31, 2012
The following items reflect the amount as shown on the return (PR), and the amount as
adjusted (PC), if applicable. They do not show subsequent activity on the account.
SSN: AAA-AA-AAAA
SPOUSE SSN:
NAME(S) SHOWN ON RETURN:
HUNTER J DAVIS
ADDRESS: 1629 MARKET STREET
OKLAHOMA CITY, OK 73102
5
FILING STATUS:
FORM NUMBER:
CYCLE POSTED:
RECEIVED DATE:
REMITTANCE:
EXEMPTION NUMBER:
IDENTITY THEFT PERSONAL ID NUMBER:
PREPARER SSN:
PREPARER EIN:
Single
1040EZ
20130605
Apr. 15, 2013
$0.00
0
000000
Income
1
WAGES, SALARIES, TIPS, ETC:................................................. $7,000.00
TAXABLE INTEREST INCOME:...................................................... $45.00
TAX-EXEMPT INTEREST:........................................................... $0.00
UNEMPLOYMENT COMPENSATION:..................................................... $0.00
Adjustments to Income
4
ADJUSTED GROSS INCOME:...................................................... $7,045.00
ADJUSTED GROSS INCOME PER COMPUTER:......................................... $7,045.00
DEPENDENT ON ANOTHER TP:.......................................................... YES
FORM 1040EZ DEDUCTION AND EXEMPTION PER COMPUTER:.............................. $0.00
Tax and Credits
TAXABLE INCOME:............................................................. $1,095.00
TAXABLE INCOME PER COMPUTER:................................................ $1,095.00
Other Taxes
TOTAL TAX LIABILITY TP FIGURES:............................................... $109.00
10 TOTAL TAX LIABILITY TP FIGURES PER COMPUTER:.................................. $109.00
Payments
FEDERAL INCOME TAX WITHHELD:.................................................. $202.00
MAKING WORK PAY AND GOV’T RET CREDIT:.......................................... $0.00
MAKING WORK PAY AND GOV’T RET CREDIT PER COMPUTER:............................. $0.00
MAKING WORK PAY AND GOV’T RET CREDIT VERIFIED:................................. $0.00
EARNED INCOME CREDIT:.......................................................... $0.00
EARNED INCOME CREDIT PER COMPUTER:............................................. $0.00
EARNED INCOME CREDIT NONTAXABLE COMBAT PAY:.................................... $0.00
SMALL EMPLOYER HEALTH INSURANCE PER COMPUTER:.................................. $0.00
TOTAL PAYMENTS:............................................................... $202.00
40
Tracking Number: XXXXXXXXXXXX
TOTAL PAYMENTS PER COMPUTER:.................................................. $202.00
Refund or Amount Owed
REFUND AMOUNT:................................................................ $-93.00
BAL DUE/OVER PYMT USING TP FIG PER COMPUTER:.................................. $-93.00
BAL DUE/OVER PYMT USING COMPUTER FIGURES:..................................... $-93.00
FORM 8888 TOTAL REFUND PER COMPUTER:............................................ $0.00
Third Party Designee
THIRD PARTY DESIGNEE ID NUMBER:.......................................................
AUTHORIZATION INDICATOR:............................................................ 0
THIRD PARTY DESIGNEE NAME:............................................................
This Product Contains Sensitive Taxpayer Data
41
Sample IRS Form 1040A: Elizabeth Moore
Form
Department of the Treasury—Internal Revenue Service
1040A
U.S. Individual Income Tax Return (99)
Your first name and initial
Last name
Elizabeth A.
Moore
If a joint return, spouse’s first name and initial
Last name
2012
IRS Use Only—Do not write or staple in this space.
OMB No. 1545-0074
Your social security number
BBB
Home address (number and street). If you have a P.O. box, see instructions.
Apt. no.
689 Patterson Road
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Boise, ID 83702
Foreign country name
Filing
status
Check only
one box.
Exemptions
BB
BBBB
Spouse’s social security number
c
Make sure the SSN(s) above
and on line 6c are correct.
Presidential Election Campaign
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
1
2
3
4
Single
Head of household (with qualifying person). (See instructions.)
Married filing jointly (even if only one had income)
If the qualifying person is a child but not your dependent,
enter this child’s name here. a
Married filing separately. Enter spouse’s SSN above and
5
Qualifying widow(er) with dependent child (see instructions)
full name here. a
Boxes
6a
Yourself. If someone can claim you as a dependent, do not check
checked on
1
box 6a.
6a and 6b
No. of children
b
Spouse
on 6c who:
(4) if child under
c Dependents:
• lived with
(3) Dependent’s
}
(2) Dependent’s social
security number
If more than six
dependents, see
instructions.
(1) First name
relationship to you
Last name
age 17 qualifying for
child tax credit (see
instructions)
you
• did not live
with you due to
divorce or
separation (see
instructions)
Dependents
on 6c not
entered above
Add numbers
on lines
above a
d Total number of exemptions claimed.
Income
7
Attach
Form(s) W-2
here. Also
attach
Form(s)
1099-R if tax
was
withheld.
If you did not
get a W-2, see
instructions.
Enclose, but do
not attach, any
payment. Also,
please use Form
1040-V.
Adjusted
gross
income
Wages, salaries, tips, etc. Attach Form(s) W-2.
7
8a
b
9a
b
10
11a
Taxable interest. Attach Schedule B if required.
Tax-exempt interest. Do not include on line 8a. 8b
Ordinary dividends. Attach Schedule B if required.
Qualified dividends (see instructions).
9b
Capital gain distributions (see instructions).
IRA
11b Taxable amount
distributions.
11a
(see instructions).
12a Pensions and
12b Taxable amount
annuities.
12a
(see instructions).
Add lines 7 through 14b (far right column). This is your total income.
16
17
18
Educator expenses (see instructions).
IRA deduction (see instructions).
Student loan interest deduction (see instructions).
19
20
Tuition and fees. Attach Form 8917.
19
Add lines 16 through 19. These are your total adjustments.
21
Subtract line 20 from line 15. This is your adjusted gross income.
9a
203 00
10
11b
12b
13
14b
a
15
36,780 00
20
0 00
16
17
18
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
42
36,577 00
8a
13 Unemployment compensation and Alaska Permanent Fund dividends.
14a Social security
14b Taxable amount
benefits.
14a
(see instructions).
15
1
a
21
Cat. No. 11327A
36,780 00
Form 1040A (2012)
Page 2
Form 1040A (2012)
Tax, credits, 22 Enter the amount from line 21 (adjusted gross income).
You were born before January 2, 1948,
Blind Total boxes
23a Check
and
if:
Spouse
was
born
before
January
2,
1948,
Blind checked a 23a
payments
{
Standard
Deduction
for—
• People who
check any
box on line
23a or 23b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$5,950
Married filing
jointly or
Qualifying
widow(er),
$11,900
Head of
household,
$8,700
If you have
a qualifying
child, attach
Schedule
EIC.
Refund
Direct
deposit?
See
instructions
and fill in
43b, 43c,
and 43d or
Form 8888.
Amount
you owe
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Joint return?
See instructions.
Keep a copy
for your records.
Paid
preparer
use only
F
Sign
here
36,780 00
24
25
26
5,950 00
30,830 00
3,800 00
27
28
27,030 00
3,619 00
34
0 00
35
3,619 00
41
3,733 00
}
b If you are married filing separately and your spouse itemizes
a 23b
deductions, check here
24 Enter your standard deduction.
25 Subtract line 24 from line 22. If line 24 is more than line 22, enter -0-.
26 Exemptions. Multiply $3,800 by the number on line 6d.
27 Subtract line 26 from line 25. If line 26 is more than line 25, enter -0-.
a
This is your taxable income.
28 Tax, including any alternative minimum tax (see instructions).
29 Credit for child and dependent care expenses. Attach
Form 2441.
29
30 Credit for the elderly or the disabled. Attach
30
Schedule R.
31 Education credits from Form 8863, line 19.
31
32 Retirement savings contributions credit. Attach
Form 8880.
32
33 Child tax credit. Attach Schedule 8812, if required.
33
34 Add lines 29 through 33. These are your total credits.
35 Subtract line 34 from line 28. If line 34 is more than line 28, enter -0-. This is
your total tax.
36 Federal income tax withheld from Forms W-2 and
1099.
36
3,733 00
37 2012 estimated tax payments and amount applied
from 2011 return.
37
38a Earned income credit (EIC).
38a
b Nontaxable combat pay
election.
38b
39 Additional child tax credit. Attach Schedule 8812.
39
40 American opportunity credit from Form 8863, line 8.
40
a
41 Add lines 36, 37, 38a, 39, and 40. These are your total payments.
42 If line 41 is more than line 35, subtract line 35 from line 41.
This is the amount you overpaid.
43a Amount of line 42 you want refunded to you. If Form 8888 is attached, check here a
Routing
a c Type:
Checking
Savings
a b
number X X X X X X X X X
Account
a d
number X X X X X X X X X X X X X X X X X
44 Amount of line 42 you want applied to your
2013 estimated tax.
44
45 Amount you owe. Subtract line 41 from line 35. For details on how to pay,
a
see instructions.
46 Estimated tax penalty (see instructions).
46
Third party
designee
22
114 00
114 00
42
43a
45
Yes. Complete the following.
No
Designee’s
Phone
Personal identification
a
a
a
name
no.
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge
and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other
than the taxpayer) is based on all information of which the preparer has any knowledge.
Your occupation
Daytime phone number
Your signature
Date
2/4/2013 Account Counselor
Spouse’s signature. If a joint return, both must sign.
Print/type preparer's name
Date
Preparer’s signature
Spouse’s occupation
Date
(555) 405-4529
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check a
if
self-employed
Firm's name a
Firm's EIN a
Firm's address a
Phone no.
Form 1040A (2012)
©
43
Sample Tax Transcript 1040A: Elizabeth Moore
This Product Contains Sensitive Taxpayer Data
Request Date: 02-21-2013
Response Date: 02-21-2013
Tracking Number: XXXXXXXXXXXX
Tax Return Transcript
SSN Provided: BBB-BB-BBBB
Tax Period Ending: Dec. 31, 2012
The following items reflect the amount as shown on the return (PR), and the
amount as adjusted (PC), if applicable. They do not show subsequent activity
on the account.
SSN:
SPOUSE SSN:
BBB-BB-BBBB
NAME(S) SHOWN ON RETURN: ELIZABETH A MOORE
ADDRESS: 689 PATTERSON
BOISE, ID 83702
6d
FILING STATUS:
FORM NUMBER:
CYCLE POSTED:
RECEIVED DATE:
REMITTANCE:
EXEMPTION NUMBER:
DEPENDENT 1 NAME CTRL:
DEPENDENT 1 SSN:
DEPENDENT 2 NAME CTRL:
DEPENDENT 2 SSN:
DEPENDENT 3 NAME CTRL:
DEPENDENT 3 SSN:
DEPENDENT 4 NAME CTRL:
DEPENDENT 4 SSN:
IDENTITY THEFT PERSONAL ID NUMBER:
PREPARER SSN:
PREPARER EIN:
SINGLE
1040A
20130905
Apr. 15, 2013
$0.00
1
000000
XXXXX
XX-XXXX
Income
7
8b
11a-11b
12a-12b
WAGES, SALARIES, TIPS, ETC:......................................... $36,577.00
TAXABLE INTEREST INCOME:................................................. $0.00
TAX-EXEMPT INTEREST:..................................................... $0.00
ORDINARY DIVIDEND INCOME: SCH B:....................................... $203.00
QUALIFIED DIVIDENDS:..................................................... $0.00
CAPITAL GAIN OR LOSS: SCHEDULE D:........................................ $0.00
CAPITAL GAINS OR LOSS: SCHEDULE D PER COMPUTER:.......................... $0.00
TOTAL IRA DISTRIBUTIONS:................................................. $0.00
TAXABLE IRA DISTRIBUTIONS:............................................... $0.00
TOTAL PENSIONS AND ANNUITIES:............................................ $0.00
TAXABLE PENSION/ANNUITY AMOUNT:.......................................... $0.00
UNEMPLOYMENT COMPENSATION:............................................... $0.00
TOTAL SOCIAL SECURITY BENEFITS:.......................................... $0.00
TAXABLE SOCIAL SECURITY BENEFITS:........................................ $0.00
TAXABLE SOCIAL SECURITY BENEFITS PER COMPUTER:........................... $0.00
SCH EIC DISQUALIFIED INC COMPUTER:....................................... $0.00
TOTAL INCOME:....................................................... $36,780.00
TOTAL INCOME PER COMPUTER:.......................................... $36,780.00
Adjustments to Income
17
EDUCATOR EXPENSES:.......................................................
EDUCATOR EXPENSES PER COMPUTER:..........................................
EARLY WITHDRAWAL OF SAVINGS PENALTY:.....................................
IRA DEDUCTION:...........................................................
IRA DEDUCTION PER COMPUTER:..............................................
44
$0.00
$0.00
$0.00
$0.00
$0.00
Tracking Number:
21
XXXXXXXXX
STUDENT LOAN INTEREST DEDUCTION:......................................... $0.00
STUDENT LOAN INTEREST DEDUCTION PER COMPUTER:............................ $0.00
TUITION AND FEES DEDUCTION:.............................................. $0.00
TUITION AND FEES DEDUCTION PER COMPUTER:................................. $0.00
JURY DUTY PAY DEDUCTION:................................................. $0.00
TOTAL ADJUSTMENTS:....................................................... $0.00
TOTAL ADJUSTMENTS PER COMPUTER:.......................................... $0.00
ADJUSTED GROSS INCOME:.............................................. $36,780.00
ADJUSTED GROSS INCOME PER COMPUTER:................................. $36,780.00
Tax and Credits
31
35
65-OR-OVER:................................................................. NO
BLIND:...................................................................... NO
SPOUSE 65-OR-OVER:.......................................................... NO
SPOUSE BLIND:............................................................... NO
EXEMPTION AMOUNT PER COMPUTER:....................................... $3,800.00
TAXABLE INCOME:..................................................... $27,030.00
TAXABLE INCOME PER COMPUTER:........................................ $27,030.00
TENTATIVE TAX:....................................................... $3,619.00
TENTATIVE TAX PER COMPUTER:.......................................... $3,619.00
CHILD & DEPENDENT CARE CREDIT:........................................... $0.00
CHILD & DEPENDENT CARE CREDIT PER COMPUTER:.............................. $0.00
CREDIT FOR ELDERLY AND DISABLED:......................................... $0.00
CREDIT FOR ELDERLY AND DISABLED PER COMPUTER:............................ $0.00
EDUCATION CREDIT:........................................................ $0.00
EDUCATION CREDIT PER COMPUTER:........................................... $0.00
GROSS EDUCATION CREDIT PER COMPUTER:..................................... $0.00
RETIREMENT SAVINGS CNTRB CREDIT:......................................... $0.00
RETIREMENT SAVINGS CNTRB CREDIT PER COMPUTER:............................ $0.00
PRIM RET SAV CNTRB: F8880 LN6A:.......................................... $0.00
SEC RET SAV CNTRB: F8880 LN6B:........................................... $0.00
CHILD TAX CREDIT:........................................................ $0.00
CHILD TAX CREDIT PER COMPUTER:........................................... $0.00
ADOPTION CREDIT: F8839:.................................................. $0.00
ADOPTION CREDIT PER COMPUTER:............................................ $0.00
TOTAL CREDITS:........................................................... $0.00
TOTAL CREDITS PER COMPUTER:.............................................. $0.00
Other Taxes
ADVANCED EARNED INCOME CREDIT:........................................... $0.00
TOTAL TAX LIABILITY TP FIGURES:...................................... $3,619.00
TOTAL TAX LIABILITY TP FIGURES PER COMPUTER:......................... $3,619.00
Payments
FEDERAL INCOME TAX WITHHELD:......................................... $3,733.00
ESTIMATED TAX PAYMENTS:.................................................. $0.00
MAKING WORK PAY AND GOV’T RET CREDIT:.................................... $0.00
MAKING WORK PAY AND GOV’T RET CREDIT PER COMPUTER:....................... $0.00
MAKING WORK PAY AND GOV’T RET CREDIT VERIFIED:........................... $0.00
REFUNDABLE EDUCATION CREDIT:............................................. $0.00
REFUNDABLE EDUCATION CREDIT PER COMPUTER:................................ $0.00
REFUNDABLE EDUCATION CREDIT VERIFIED:.................................... $0.00
EARNED INCOME CREDIT:.................................................... $0.00
EARNED INCOME CREDIT PER COMPUTER:....................................... $0.00
EARNED INCOME CREDIT NONTAXABLE COMBAT PAY:.............................. $0.00
SCHEDULE M NONTAXABLE COMBAT PAY:........................................ $0.00
SCHEDULE 8812 NONTAXABLE COMBAT PAY:..................................... $0.00
SCHEDULE 8812 TOT SS/MEDICARE WITHHELD:.................................. $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT:............................... $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT PER COMPUTER:.................. $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT VERIFED:....................... $0.00
SMALL EMPLOYER HEALTH INSURANCE PER COMPUTER:............................ $0.00
TOTAL PAYMENTS:...................................................... $3,733.00
TOTAL PAYMENTS PER COMPUTER:......................................... $3,733.00
45
Tracking Number:
XXXXXXXXXXXX
Refund or Amount Owed
REFUND AMOUNT:........................................................ $-114.00
APPLIED TO NEXT YEAR’S ESTIMATED TAX:.................................... $0.00
ESTIMATED TAX PENALTY:................................................... $0.00
BAL DUE/OVER PYMT USING TP FIG PER COMPUTER:.......................... $-114.00
BAL DUE/OVER PYMT USING COMPUTER FIGURES:............................. $-114.00
FORM 8888 TOTAL REFUND PER COMPUTER:..................................... $0.00
Third Party Designee
THIRD PARTY DESIGNEE ID NUMBER:................................................
AUTHORIZATION INDICATOR:..................................................... 0
THIRD PARTY DESIGNEE NAME:.....................................................
Form 8863 – Education Credits (Hope and Lifetime Learning Credits)
PART III – ALLOWABLE EDUCATION CREDITS
GROSS EDUCATION CR PER COMPUTER:......................................... $0.00
TOTAL EDUCATION CREDIT AMOUNT:........................................... $0.00
TOTAL EDUCATION CREDIT AMOUNT PER COMPUTER:.............................. $0.00
This Product Contains Sensitive Taxpayer Data
46
Form
Sample IRS Form 1040: Ethan and Miranda James
1040
(99)
Department of the Treasury—Internal Revenue Service
2012
U.S. Individual Income Tax Return
For the year Jan. 1–Dec. 31, 2012, or other tax year beginning
OMB No. 1545-0074
, 2012, ending
Your first name and initial
Last name
Ethan L
James
If a joint return, spouse’s first name and initial
Last name
Miranda R
James
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Your social security number
CCC CC CCCC
Spouse’s social security number
DDD DD DDDD
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
c
123 Broken Arrow
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Presidential Election Campaign
Anaheim, CA 92804
Foreign country name
Filing Status
Check only one
box.
Exemptions
Single
Married filing jointly (even if only one had income)
2
3
6a
b
c
Spouse
.
Dependents:
.
.
.
.
Adjusted
Gross
Income
the qualifying person is a child but not your dependent, enter this
child’s name here. a
5
Qualifying widow(er) with dependent child
.
.
.
.
.
.
(2) Dependent’s
social security number
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
}
(4) if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
2
1
• did not live with
you due to divorce
or separation
(see instructions)
Son
EEE EE EEEE
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
Dependents on 6c
not entered above
d
Enclose, but do
not attach, any
payment. Also,
please use
Form 1040-V.
.
Last name
Bryan James
If you did not
get a W-2,
see instructions.
Head of household (with qualifying person). (See instructions.) If
Yourself. If someone can claim you as a dependent, do not check box 6a .
If more than four
dependents, see
instructions and
check here a
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
4
Married filing separately. Enter spouse’s SSN above
and full name here. a
(1) First name
Income
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code
a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
1
Make sure the SSN(s) above
and on line 6c are correct.
.
.
.
.
.
.
.
.
.
.
8b
. .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8a
.
.
.
.
.
.
.
9a
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here a
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
Health savings account deduction. Attach Form 8889
.
24
25
26
27
28
Moving expenses. Attach Form 3903 . . . . . .
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
26
27
28
29
30
31a
Self-employed health insurance deduction
Penalty on early withdrawal of savings . .
.
.
.
.
.
.
.
.
32
33
34
Alimony paid b Recipient’s SSN a
IRA deduction . . . . . . .
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
29
30
31a
.
.
.
.
.
.
.
.
.
.
.
.
32
33
34
35
36
37
Domestic production activities deduction. Attach Form 8903
35
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
7
8a
b
9a
b
Total number of exemptions claimed
.
.
.
.
Wages, salaries, tips, etc. Attach Form(s) W-2
.
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
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.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. . . . . .
. . . . . .
b Taxable amount
.
.
.
.
.
.
a
.
7
Add numbers on
lines above a
3
33,108 00
668 00
4,473 00
7,430 00
21
22
45,679 00
36
37
47 00
45,632 00
23
47 00
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
47
.
.
.
.
.
.
.
.
.
.
.
.
.
.
a
Cat. No. 11320B
Form
1040
(2012)
Page 2
Form 1040 (2012)
Tax and
Credits
Standard
Deduction
for—
• People who
check any
box on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$5,950
Married filing
jointly or
Qualifying
widow(er),
$11,900
Head of
household,
$8,700
Other
Taxes
38
Amount from line 37 (adjusted gross income)
39a
Check
if:
{
.
.
.
.
.
You were born before January 2, 1948,
Spouse was born before January 2, 1948,
.
.
.
42
43
Exemptions. Multiply $3,800 by the number on line 6d . . . . . . . . . . . .
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . .
Form 4972 c
962 election
Tax (see instructions). Check if any from: a
Form(s) 8814 b
44
45
46
Alternative minimum tax (see instructions). Attach Form 6251 .
Add lines 44 and 45 . . . . . . . . . . . . . .
47
48
Foreign tax credit. Attach Form 1116 if required .
Credit for child and dependent care expenses. Attach Form 2441
47
48
49
50
51
Education credits from Form 8863, line 19 . . . . .
Retirement savings contributions credit. Attach Form 8880
Child tax credit. Attach Schedule 8812, if required . . .
49
50
51
52
Residential energy credits. Attach Form 5695
3800 b
8801
Other credits from Form: a
52
53
54
55
.
.
.
.
.
.
.
.
.
c
53
Add lines 47 through 53. These are your total credits . . . . .
Subtract line 54 from line 46. If line 54 is more than line 46, enter -0. . . .
a
4137
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
b
.
.
.
.
.
.
a
.
.
.
.
.
. .
8919
.
.
.
.
58
59a
b
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
Household employment taxes from Schedule H
.
.
.
.
.
.
.
.
.
.
First-time homebuyer credit repayment. Attach Form 5405 if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
64a
b
Earned income credit (EIC) . . . . . .
Nontaxable combat pay election
64b
Additional child tax credit. Attach Schedule 8812 .
65
66
67
68
69
70
71
72
.
.
.
.
.
.
.
.
.
.
.
.
American opportunity credit from Form 8863, line 8 .
Reserved . . . . . . . . . . . . .
Amount paid with request for extension to file . .
.
.
.
.
.
.
.
.
.
.
a
44
45
46
00
00
00
00
00
2,479 00
1,660 00
819 00
82 00
55
56
57
447 00
60
61
1,348 00
3,512 00
62
63
64a
65
66
440 00
67 *
68
. . . .
69
Credit for federal tax on fuels. Attach Form 4136 . . . .
70
Credits from Form: a
2439 b
Reserved c
8801 d
8885 71
Add lines 62, 63, 64a, and 65 through 71. These are your total payments .
Excess social security and tier 1 RRTA tax withheld
.
.
.
a
.
73
If line 72 is more than line 61, subtract line 61 from line 72. This is the amount you overpaid
74a
b
d
Amount of line 73 you want refunded to you. If Form 8888 is attached, check here . a
X X X X X X X X X a c Type: Checking
Routing number
Savings
X X X X X X X X X X X X X X X X X
Account number
Amount of line 73 you want applied to your 2013 estimated tax a 75
Amount you owe. Subtract line 72 from line 61. For details on how to pay, see instructions a
a
Direct deposit?
See
a
instructions.
75
76
77
43
58
59a
59b
Other taxes. Enter code(s) from instructions
.
11,900
33,732
11,400
22,332
2,479
54
a
.
.
40
41
42
1,000 00
Self-employment tax. Attach Schedule SE . . . .
Unreported social security and Medicare tax from Form:
.
45,632 00
660 00
56
57
.
38
Total boxes
checked a 39a
39b
If you have a
qualifying
child, attach
Schedule EIC.
77
Estimated tax penalty (see instructions) . . . . . . .
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Designee’s
name a
Phone
no. a
3,952 00
2,604 00
2,604 00
72
73
74a
76
Yes. Complete below.
No
Personal identification
a
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
F
Paid
Preparer
Use Only
.
.
.
Federal income tax withheld from Forms W-2 and 1099 . .
2012 estimated tax payments and amount applied from 2011 return
Joint return? See
instructions.
Keep a copy for
your records.
.
If your spouse itemizes on a separate return or you were a dual-status alien, check here a
62
63
Sign
Here
}
.
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
Subtract line 40 from line 38
. . . . . . . . . . . . . . . . .
b
Payments
Third Party
Designee
.
40
41
Add lines 55 through 60. This is your total tax
Amount
You Owe
.
Blind.
Blind.
60
61
Refund
.
Spouse’s signature. If a joint return, both must sign.
Daytime phone number
(555) 627-8937
Date
Spouse’s occupation
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
2/1/2013 Teleinterviewer
Print/Type preparer’s name
Firm’s name
Your occupation
2/1/2013 Contractor
Preparer’s signature
Date
a
Firm's EIN
Firm’s address a
Phone no.
a
Form 1040 (2012)
* Line 67 was shaded by the IRS and is not relevant to verification.
48
Sample Tax Transcript 1040: Ethan and Miranda James
This Product Contains Sensitive Taxpayer Data
Request Date: 02-20-2013
Response Date: 02-20-2013
Tracking Number: XXXXXXXXXXXX
Tax Return Transcript
SSN Provided: CCC-CC-CCCC
Tax Period Ending: Dec. 31, 2012
The following items reflect the amount as shown on the return (PR), and the
amount as adjusted (PC), if applicable. They do not show subsequent activity on
the account.
SSN: CCC-CC-CCCC
SPOUSE SSN: DDD-DD-DDDD
NAME(S) SHOWN ON RETURN: ETHAN L & MIRANDA R JAMES
ADDRESS: 123 BROKEN ARROW
ANAHEIM, CA 92804
FILING STATUS:
FORM NUMBER:
CYCLE POSTED:
RECEIVED DATE:
REMITTANCE:
6d EXEMPTION NUMBER:
DEPENDENT 1 NAME CTRL:
DEPENDENT 1 SSN:
DEPENDENT 2 NAME CTRL:
DEPENDENT 2 SSN:
DEPENDENT 3 NAME CTRL:
DEPENDENT 3 SSN:
DEPENDENT 4 NAME CTRL:
DEPENDENT 4 SSN:
IDENTITY THEFT PERSONAL ID NUMBER:
PREPARER SSN:
PREPARER EIN:
Married Filing Joint
1040
20130605
Apr. 15, 2013
$0.00
3
JAME
EEE-EE-EEEE
000000
XXXXX
XX-XXXX
Income
WAGES, SALARIES, TIPS, ETC:............................................. $33,108.00
TAXABLE INTEREST INCOME: SCH B:.............................................. $0.00
8b TAX-EXEMPT INTEREST:......................................................... $0.00
ORDINARY DIVIDEND INCOME: SCH B:............................................. $0.00
QUALIFIED DIVIDENDS:......................................................... $0.00
REFUNDS OF STATE/LOCAL TAXES:................................................ $0.00
ALIMONY RECEIVED:............................................................ $0.00
BUSINESS INCOME OR LOSS (Schedule C):...................................... $668.00
12 BUSINESS INCOME OR LOSS: SCH C PER COMPUTER:............................... $668.00
CAPITAL GAIN OR LOSS: (Schedule D):.......................................... $0.00
CAPITAL GAINS OR LOSS: SCH D PER COMPUTER:................................... $0.00
OTHER GAINS OR LOSSES: (Form 4797):.......................................... $0.00
TOTAL IRA DISTRIBUTIONS:..................................................... $0.00
15a-15b TAXABLE IRA DISTRIBUTIONS:............................................... $4,473.00
TOTAL PENSIONS AND ANNUITIES:................................................ $0.00
16a-16b TAXABLE PENSION/ANNUITY AMOUNT:.............................................. $0.00
RENT/ROYALTY/PARTNERSHIP/ESTATE (Schedule E):................................ $0.00
RENT/ROYALTY/PARTNERSHIP/ESTATE (Schedule E) PER COMPUTER:................... $0.00
RENT/ROTALTY INCOME/LOSS PER COMPUTER:....................................... $0.00
ESTATE/TRUST INCOME/LOSS PER COMPUTER:....................................... $0.00
PARTNERSHIP/S-CORP INCOME/LOSS PER COMPUTER:................................. $0.00
FARM INCOME OR LOSS (Schedule F):............................................ $0.00
18 FARM INCOME OR LOSS (Schedule F) PER COMPUTER:............................... $0.00
UNEMPLOYMENT COMPENSATION:............................................... $7,430.00
TOTAL SOCIAL SECURITY BENEFITS:.............................................. $0.00
7
49
Tracking Number:
XXXXXXXXXXXX
TAXABLE SOCIAL SECURITY BENEFITS:.............................................. $0.00
TAXABLE SOCIAL SECURITY BENEFITS PER COMPUTER:................................. $0.00
OTHER INCOME:.................................................................. $0.00
SCHEDULE EIC SE INCOME PER COMPUTER:......................................... $621.00
SCHEDULE EIC EARNED INCOME PER COMPUTER:.................................. $33,729.00
SCH EIC DISQUALIFIED INC COMPUTER:............................................. $0.00
TOTAL INCOME:............................................................. $45,679.00
TOTAL INCOME PER COMPUTER:................................................ $45,679.00
Adjustments to Income
25
28
32
37
EDUCATOR EXPENSES:
EDUCATOR EXPENSES PER COMPUTER:................................................ $0.00
RESERVIST AND OTHER BUSINESS EXPENSE:.......................................... $0.00
HEALTH SAVINGS ACCT DEDUCTION:................................................. $0.00
HEALTH SAVINGS ACCT DEDUCTION PER COMPUTER:.................................... $0.00
MOVING EXPENSES: F3903:........................................................ $0.00
SELF EMPLOYMENT TAX DEDUCTION:................................................ $47.00
SELF EMPLOYMENT TAX DEDUCTION PER COMPUTER:................................... $47.00
KEOGH/SEP CONTRIBUTION DEDUCTION:.............................................. $0.00
SELF-EMP HEALTH INS DEDUCTION:................................................. $0.00
EARLY WITHDRAWAL OF SAVINGS PENALTY:........................................... $0.00
ALIMONY PAID SSN:.............................................................. $0.00
ALIMONY PAID:.................................................................. $0.00
IRA DEDUCTION:................................................................. $0.00
IRA DEDUCTION PER COMPUTER:.................................................... $0.00
STUDENT LOAN INTEREST DEDUCTION:............................................... $0.00
STUDENT LOAN INTEREST DEDUCTION PER COMPUTER:.................................. $0.00
TUITION AND FEES DEDUCTION:.................................................... $0.00
TUITION AND FEES DEDUCTION PER COMPUTER:....................................... $0.00
JURY DUTY PAY DEDUCTION:....................................................... $0.00
DOMESTIC PRODUCTION ACTIVITIES DEDUCTION:...................................... $0.00
OTHER ADJUSTMENTS:............................................................. $0.00
ARCHER MSA DEDUCTION:.......................................................... $0.00
ARCHER MSA DEDUCTION PER COMPUTER:............................................. $0.00
TOTAL ADJUSTMENTS:............................................................ $47.00
TOTAL ADJUSTMENTS PER COMPUTER:............................................... $47.00
ADJUSTED GROSS INCOME:.................................................... $45,632.00
ADJUSTED GROSS INCOME PER COMPUTER:....................................... $45,632.00
Tax and Credits
65-OR-OVER:...................................................................... NO
BLIND:........................................................................... NO
SPOUSE 65-OR-OVER:............................................................... NO
SPOUSE BLIND:.................................................................... NO
STANDARD DEDUCTION PER COMPUTER:.......................................... $11,900.00
ADDITIONAL STANDARD DEDUCTION PER COMPUTER:.................................... $0.00
TAX TABLE INCOME PER COMPUTER:............................................ $33,732.00
EXEMPTION AMOUNT PER COMPUTER:............................................ $11,400.00
TAXABLE INCOME:........................................................... $22,332.00
TAXABLE INCOME PER COMPUTER:.............................................. $22,332.00
TOTAL POSITIVE INCOME PER COMPUTER:....................................... $45,679.00
TENTATIVE TAX:............................................................. $2,479.00
TENTATIVE TAX PER COMPUTER:................................................ $2,479.00
FORM 8814 ADDITIONAL TAX AMOUNT:............................................... $0.00
TAX ON INCOME LESS SOC SEC INCOME PER COMPUTER:................................ $0.00
FORM 6251 ALTERNATIVE MINIMUM TAX:............................................. $0.00
FORM 6251 ALTERNATIVE MINIMUM TAX PER COMPUTER:................................ $0.00
FOREIGN TAX CREDIT:............................................................ $0.00
FOREIGN TAX CREDIT PER COMPUTER:............................................... $0.00
FOREIGN INCOME EXCLUSION PER COMPUTER:......................................... $0.00
FOREIGN INCOME EXCLUSION TAX PER COMPUTER:..................................... $0.00
CHILD & DEPENDENT CARE CREDIT:................................................. $0.00
CHILD & DEPENDENT CARE CREDIT PER COMPUTER:.................................... $0.00
CREDIT FOR ELDERLY AND DISABLED:............................................... $0.00
CREDIT FOR ELDERLY AND DISABLED PER COMPUTER:.................................. $0.00
EDUCATION CREDIT:............................................................ $660.00
49 EDUCATION CREDIT PER COMPUTER:............................................... $660.00
GROSS EDUCATION CREDIT PER COMPUTER:......................................... $660.00
RETIREMENT SAVINGS CNTRB CREDIT:............................................... $0.00
RETIREMENT SAVINGS CNTRB CREDIT PER COMPUTER:.................................. $0.00
50
Tracking Number:
XXXXXXXXXXXX
PRIM RET SAV CNTRB: F8880 LN6A:................................................ $0.00
SEC RET SAV CNTRB: F8880 LN6B:................................................. $0.00
TOTAL RETIREMENT SAVINGS CONTRIBUTION: F8880 CMPTR:............................ $0.00
RESIDENTIAL ENERGY CREDIT:..................................................... $0.00
RESIDENTIAL ENERGY CREDIT PER COMPUTER:........................................ $0.00
CHILD TAX CREDIT:.......................................................... $1,000.00
CHILD TAX CREDIT PER COMPUTER:............................................. $1,000.00
ADOPTION CREDIT: F8839:........................................................ $0.00
ADOPTION CREDIT PER COMPUTER:.................................................. $0.00
FORM 8839 REFUND ADOPTION CREDIT AMOUNT:....................................... $0.00
DC 1ST TIME HOMEBUYERS CREDIT:................................................. $0.00
DC 1ST TIME HOMEBUYERS CREDIT PER COMPUTER:.................................... $0.00
FORM 8396 MORTGAGE CERTIFICATE CREDIT:......................................... $0.00
FORM 8396 MORTGAGE CERTIFICATE CREDIT PER COMPUTER:............................ $0.00
F3800, F8801 AND OTHER CREDIT AMOUNT:.......................................... $0.00
FORM 3800 GENERAL BUSINESS CREDITS:............................................ $0.00
FORM 3800 GENERAL BUSINESS CREDITS PER COMPUTER:............................... $0.00
PRIOR YR MIN TAX CREDIT: F8801:................................................ $0.00
PRIOR YR MIN TAX CREDIT: F8801 PER COMPUTER:................................... $0.00
F8834 ELECTRIC VEHICLE CREDIT AMOUNT:.......................................... $0.00
F8936 ELECTRIC MOTOR VEHICLE CREDIT AMOUNT:.................................... $0.00
F8910 ALTERNATIVE MOTOR VEHICLE CREDIT AMOUNT:................................. $0.00
OTHER CREDITS:................................................................. $0.00
TOTAL CREDITS:............................................................. $1,660.00
TOTAL CREDITS PER COMPUTER:................................................ $1,660.00
55 INCOME TAX AFTER CREDITS PER COMPUTER:....................................... $819.00
Other Taxes
SE TAX:....................................................................... $82.00
SE TAX PER COMPUTER:.......................................................... $82.00
SOCIAL SECURITY AND MEDICARE TAX ON UNREPORTED TIPS:........................... $0.00
SOCIAL SECURITY AND MEDICARE TAX ON UNREPORTED TIPS PER COMPUTER:.............. $0.00
TAX ON QUALIFIED PLANS F5329 (PR):........................................... $447.00
TAX ON QUALIFIED PLANS F5329 PER COMPUTER:................................... $447.00
IRAF TAX PER COMPUTER:......................................................... $0.00
TP TAX FIGURES (REDUCED BY IRAF) PER COMPUTER:............................. $1,348.00
IMF TOTAL TAX (REDUCED BY IRAF) PER COMPUTER:.............................. $1,348.00
ADVANCED EARNED INCOME CREDIT:................................................. $0.00
RECOVERY REBATE CREDIT AMOUNT:................................................. $0.00
UNPAID FICA ON REPORTED TIPS:.................................................. $0.00
OTHER TAXES:................................................................... $0.00
RECAPTURE TAX F8611:........................................................... $0.00
HOUSEHOLD EMPLOYMENT TAXES:.................................................... $0.00
HOUSEHOLD EMPLOYMENT TAXES PER COMPUTER:....................................... $0.00
RECAPTURE TAXES:............................................................... $0.00
TOTAL ASSESSMENT PER COMPUTER:............................................. $1,348.00
TOTAL TAX LIABILITY TP FIGURES:............................................ $1,348.00
TOTAL TAX LIABILITY TP FIGURES PER COMPUTER:............................... $1,348.00
Payments
FEDERAL INCOME TAX WITHHELD:............................................... $3,512.00
COBRA PREMIUM SUBSIDY:......................................................... $0.00
ESTIMATED TAX PAYMENTS:........................................................ $0.00
MAKING WORK PAY AND GOV’T RET CREDIT:.......................................... $0.00
MAKING WORK PAY AND GOV’T RET CREDIT PER COMPUTER:............................. $0.00
MAKING WORK PAY AND GOV’T RET CREDIT VERIFIED:................................. $0.00
REFUNDABLE EDUCATION CREDIT:................................................. $440.00
REFUNDABLE EDUCATION CREDIT PER COMPUTER:.................................... $440.00
REFUNDABLE EDUCATION CREDIT VERIFIED:.......................................... $0.00
EARNED INCOME CREDIT:.......................................................... $0.00
EARNED INCOME CREDIT PER COMPUTER:............................................. $0.00
EARNED INCOME CREDIT NONTAXABLE COMBAT PAY:.................................... $0.00
SCHEDULE M NONTAXABLE COMBAT PAY:.............................................. $0.00
SCHEDULE 8812 NONTAXABLE COMBAT PAY:........................................... $0.00
EXCESS SOCIAL SECURITY & RRTA TAX WITHHELD:.................................... $0.00
SCHEDULE 8812 TOT SS/MEDICARE WITHHELD:........................................ $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT:..................................... $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT PER COMPUTER:........................ $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT VERIFIED:............................ $0.00
51
Tracking Number:
XXXXXXXXXXXX
AMOUNT PAID WITH FORM 4868:.................................................... $0.00
FORM 2439 REGULATED INVESTMENT COMPANY CREDIT:................................. $0.00
FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS:..................................... $0.00
FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS PER COMPUTER:........................ $0.00
HEALTH COVERAGE TX CR: F8885:.................................................. $0.00
FORM 8801 REFUNDABLE CREDIT FOR PRIOR YEAR MIN. TAX:........................... $0.00
FIRST TIME HOME BUYER CREDIT PER COMPUTER:..................................... $0.00
FIRST TIME HOME BUYER CREDIT:.................................................. $0.00
FIRST TIME HOME BUYER CREDIT VERIFIED:......................................... $0.00
PRIMARY NAP FIRST TIME HOME BUYER INSTALLMENT AMT:............................. $0.00
SECONDARY NAP FIRST TIME HOME BUYER INSTALLMENT AMT:........................... $0.00
FIRST TIME HOMEBUYER CREDIT REPAYMENT AMOUNT:.................................. $0.00
FORM 2555 COMBINED EARNED INCOME AMOUNT PER COMPUTER: ......................... $0.00
FORM 5405 TOTAL HOMEBUYERS CREDIT REPAYMENT PER COMPUTER:...................... $0.00
SMALL EMPLOYER HEALTH INSURANCE PER COMPUTER:.................................. $0.00
SMALL EMPLOYER HEALTH INSURANCE PER COMPUTER (2):.............................. $0.00
FORM 2439, 8801, and OTHER CREDIT TOTAL AMT:................................... $0.00
TOTAL PAYMENTS:............................................................ $3,952.00
TOTAL PAYMENTS PER COMPUTER:............................................... $3,952.00
Refund or Amount Owed
REFUND AMOUNT:............................................................ $-2,604.00
APPLIED TO NEXT YEAR’S ESTIMATED TAX:.......................................... $0.00
ESTIMATED TAX PENALTY:......................................................... $0.00
TAX ON INCOME LESS STATE REFUND PER COMPUTER:.................................. $0.00
BAL DUE/OVER PYMT USING TP FIG PER COMPUTER:.............................. $-2,604.00
BAL DUE/OVER PYMT USING COMPUTER FIGURES:................................. $-2,604.00
FORM 8888 TOTAL REFUND PER COMPUTER:........................................... $0.00
Third Party Designee
THIRD PARTY DESIGNEE ID NUMBER:.....................................................
AUTHORIZATION INDICATOR:........................................................... 0
THIRD PARTY DESIGNEE NAME:..........................................................
Interest and Dividends
GROSS SCHEDULE B INTEREST:..................................................... $0.00
TAXABLE INTEREST INCOME:....................................................... $0.00
EXCLUDABLE SAVINGS FROM BOND INT:.............................................. $0.00
GROSS SCHEDULE B DIVIDENDS:.................................................... $0.00
DIVIDEND INCOME:............................................................... $0.00
FOREIGN ACCOUNTS IND:........................................................... NONE
FOREIGN COUNTRY FINANCIAL INTEREST/SIGNATURE AUTHORITY:......................... NONE
Schedule C--Profit or Loss From Business
SOCIAL SECURITY NUMBER:.................................................. CCC-CC-CCCC
EMPLOYER ID NUMBER:..................................................................
BUSINESS NAME:.......................................................................
DESCRIPTION OF BUSINESS/PROFESSION:..................................... CONSTRUCTION
NAICS CODE:................................................................... 238120
ACCT MTHD:...................................................................... Cash
FIRST TIME SCHEDULE C FILED:....................................................... Y
STATUTORY EMPLOYEE IND:............................................................ N
INCOME
GROSS RECEIPTS OR SALES:................................................... $4,875.00
RETURNS AND ALLOWANCES:........................................................ $0.00
NET GROSS RECEIPTS:........................................................ $4,875.00
COST OF GOODS SOLD:........................................................ $2,115.00
SCHEDULE C FORM 1099 REQUIRED:.................................................... NO
SCHEDULE C FORM 1099 FILED:..................................................... NONE
OTHER INCOME:.................................................................. $0.00
52
Tracking Number:
XXXXXXXXXXXX
EXPENSES
CAR AND TRUCK EXPENSES:........................................................ $0.00
DEPRECIATION:.................................................................. $0.00
INSURANCE (OTHER THAN HEALTH):................................................. $0.00
MORTGAGE INTEREST:............................................................. $0.00
LEGAL AND PROFESSIONAL SERVICES:............................................... $0.00
REPAIRS AND MAINTENANCE:....................................................... $0.00
TRAVEL:........................................................................ $0.00
MEALS AND ENTERTAINMENT:..................................................... $122.00
WAGES:......................................................................... $0.00
OTHER EXPENSES:.............................................................. $840.00
TOTAL EXPENSES:............................................................ $2,092.00
EXP FOR BUSINESS USE OF HOME:.................................................. $0.00
SCH C NET PROFIT OR LOSS PER COMPUTER:....................................... $668.00
AT RISK CD:..........................................................................
OFFICE EXPENSE AMOUNT:....................................................... $542.00
UTILITIES EXPENSE AMOUNT:.................................................... $422.00
COST OF GOODS SOLD
INVENTORY AT BEGINNING OF YEAR:................................................ $0.00
INVENTORY AT END OF YEAR:...................................................... $0.00
Schedule SE--Self-Employment Tax
SSN OF SELF-EMPLOYED TAXPAYER:........................................... CCC-CC-CCCC
NET FARM PROFIT/LOSS: SCH F:................................................... $0.00
CONSERVATION RESERVE PROGRAM PAYMENTS:......................................... $0.00
NET NONFARM PROFIT/LOSS:..................................................... $668.00
TOTAL SE INCOME:............................................................. $668.00
SE QUARTERS COVERED:............................................................... 4
TOTAL SE TAX PER COMPUTER:.................................................... $81.92
SE INCOME COMPUTER VERIFIED:................................................... $0.00
SE INCOME PER COMPUTER:...................................................... $616.00
TOTAL NET EARNINGS PER COMPUTER:............................................. $616.00
LONG FORM ONLY
TENTATIVE CHURCH EARNINGS:..................................................... $0.00
TOTAL SOC SEC & RR WAGES:...................................................... $0.00
SE SS TAX COMPUTER:........................................................... $64.06
SE MEDICARE INCOME PER COMPUTER:............................................. $616.00
SE MEDICARE TAX PER COMPUTER:................................................. $17.86
SE FARM OPTION METHOD USED:........................................................ 0
SE OPTIONAL METHOD INCOME:..................................................... $0.00
Form 8863 - Education Credits (Hope and Lifetime Learning Credits)
PART I – EDUCATION CREDITS
STUDENT 1
STUDENT 1
STUDENT 2
STUDENT 2
STUDENT 3
STUDENT 3
TENTATIVE
NAME CNTRL:........................................................... JAME
SSN:........................................................... DDD-DD-DDDD
NAME CNTRL:................................................................
SSN:.......................................................................
NAME CNTRL:................................................................
SSN:.......................................................................
CREDIT AMOUNT:................................................... $1,100.00
53
Tracking Number:
XXXXXXXXXXXX
PART II – LIFETIME LEARNING CREDITS
TOTAL LIFETIME LEARNING CR QLFD EXP:........................................... $0.00
EDUCATIONAL INSTITUTION FEDERAL ID NUMBER STUDENT 1:....................... 000000000
SECOND EDUCATIONAL INSTITUTION FEDERAL ID NUMBER, STUDENT 1:............... 000000000
EDUCATIONAL INSTITUTION FEDERAL ID NUMBER STUDENT 2:....................... 000000000
SECOND EDUCATIONAL INSTITUTION FEDERAL ID NUMBER, STUDENT 2:............... 000000000
EDUCATIONAL INSTITUTION FEDERAL ID NUMBER STUDENT 3:....................... 000000000
SECOND EDUCATIONAL INSTITUTION FEDERAL ID NUMBER, STUDENT 3:............... 000000000
PRIOR YEAR HOPE SCHOLARSHIP OR AOT CREDIT CLAIMED STUDENT 1:...................... NO
ACADEMIC ELIGIBILITY, STUDENT 1:................................................. YES
POST-SECONDARY COMPLETE STUDENT 1:................................................ NO
FELONY CONVICTION STUDENT 1:...................................................... NO
PRIOR YEAR HOPE SCHOLARSHIP OR AOT CREDIT CLAIMED STUDENT 2:.................... NONE
ACADEMIC ELIGIBILITY, STUDENT 2:................................................ NONE
POST-SECONDARY COMPLETE STUDENT 2:.............................................. NONE
FELONY CONVICTION STUDENT 2:.................................................... NONE
PRIOR YEAR HOPE SCHOLARSHIP OR AOT CREDIT CLAIMED STUDENT 3:.................... NONE
ACADEMIC ELIGIBILITY, STUDENT 3:................................................ NONE
POST-SECONDARY COMPLETE STUDENT 3:.............................................. NONE
FELONY CONVICTION STUDENT 3:.................................................... NONE
VERIFIED NUMBER OF EDUCATION CREDIT ELIGIBLE STUDENTS................................
TOTAL LIFETIME LEARNING CR QLFD EXP PER COMPUTER:.............................. $0.00
PART III – ALLOWABLE EDUCATION CREDITS
GROSS EDUCATION CR PER COMPUTER:............................................. $660.00
TOTAL EDUCATION CREDIT AMOUNT:............................................... $660.00
TOTAL EDUCATION CREDIT AMOUNT PER COMPUTER:.................................. $660.00
This Product Contains Sensitive Taxpayer Data
54
Appendix C
Criteria for 2013-2014 Simplified Needs Formulas and Automatic-Zero EFC Calculation
The following criteria is used to determine if students qualify to have their EFCs calculated using a simplified formula.
Simplified
(assets not considered)
Parents had a 2012 AGI of $49,999 or less (for
tax filers), or if nonfilers, income earned from
work in 2012 is $49,999 or less; and
u Either
– Parents filed or are eligible to file a 2012 IRS
Form 1040A or 1040EZ (or not required to
file any income tax return) or
– Anyone in the parents’ household size (as
defined on the FAFSA) received meanstested federal benefits during 2011 or
2012, or
– Parent is a dislocated worker.
u
Dependent student
Student (and spouse, if any) had a 2012 AGI
of $49,999 or less (for tax filers), or if
nonfilers, income earned from work in 2012
is $49,999 or less; and
u Either
– Student (and spouse, if any) filed or is
Independent student
eligible to file a 2012 IRS Form 1040A or
without dependents
1040EZ (or not required to file any income
(other than a spouse)
tax return) or
– Anyone in the student’s household size (as
defined on the FAFSA) received meanstested federal benefits during 2011 or
2012, or
– Student (or spouse, if any) is a dislocated
worker.
Automatic Zero EFC
Parents had a 2012 AGI of $24,000 or less (for
tax filers), or if nonfilers, income earned from
work in 2012 is $24,000 or less; and
u Either
– Parents filed or are eligible to file a 2012 IRS
Form 1040A or 1040EZ (or not required to
file any income tax return) or
– Anyone in parents’ household size (as
defined on the FAFSA) received meanstested federal benefits during 2011 or
2012, or
– Parent is a dislocated worker.
u
u
Student (and spouse, if any) had a 2012 AGI
of $49,999 or less (for tax filers), or if
nonfilers, income earned from work in 2012
is $49,999 or less; and
u Either
– Student (and spouse, if any) filed or is
Independent student
eligible to file a 2012 IRS Form1040A or
with dependents
1040EZ (or not required to file any income
(other than a spouse)
tax return) or
– Anyone in the student’s household size (as
defined on the FAFSA) received meanstested federal benefits during 2011 or
2012, or
– Student (or spouse, if any) is a dislocated
worker.
u
55
Not applicable.
Student (and spouse, if any) had a 2012 AGI
of $24,000 or less (for tax filers), or if
nonfilers, income earned from work in 2012
is $24,000 or less; and
u Either
– Student (and spouse, if any) filed or is
eligible to file a 2012 IRS Form 1040A or
1040EZ (or not required to file any income
tax return) or
– Anyone in the student’s household size (as
defined on the FAFSA) received meanstested federal benefits during 2011 or
2012, or
– Student (or spouse, if any) is a dislocated
worker.
u
This page intentionally left blank.
Appendix D
2012 Federal Tax Return: Eligible to File a 1040A/EZ?
“If you have filed or will file a 1040, were you eligible to file a 1040A or 1040EZ?” (2013-2014 FAFSA questions 34 and 81.)
YES, IF taxable income from line 43 is less than $100,000 –AND–
IF amounts (other than zero) do not appear on the following lines:
1040 Section
Line #
Description
10
11
12
13
14
17
18
21
Taxable refunds, credits or oﬀsets of state and local income taxes.
Alimony received.
Business income or loss.
Capital gain or loss (ignore if Schedule D was not required).
Other gains or losses.
Rental real estate, royalties, partnerships, etc.
Farm income or loss.
Other income.
24
25
26
27
28
29
30
31a
35
Certain business expenses of reservists, performing artists, and fee-basis
government oﬃcials.
Health savings account deduction.
Moving expenses.
Deductible part of self-employment tax.
Self-employed SEP, SIMPLE and qualified plans.
Self-employed health insurance deduction.
Penalty on early withdrawal of savings.
Alimony paid.
Domestic production activities deduction.
Tax and Credits
40
43
44
47
52
53
Cannot have itemized deductions*.
Taxable income must be less than $100,000.
Forms 8814, 4972 or 962 election cannot be checked.
Foreign tax credit.
Residential energy credit.
Credits from Form 3800, 8801 or other.
Other Taxes
56
57
58
59a
59b
60
Self-employment tax.
Unreported SS and Medicare tax from Form 4137 or 8919.
Additional tax on IRAs, other qualified retirement plans, etc.
Household employment taxes from Schedule H.
First-time homebuyer credit repayment.
Other taxes.
Payments
68
69
70
71
Amount paid with request for extension to file.
Excess social security and tier 1 RRTA tax withheld.
Credit for federal tax on fuels.
Credits from Form 2439, 8801 or 8885.
Income
Adjusted Gross Income
* On an IRS tax return transcript, the 'Standard Deduction Per Computer' line amount will show as a zero for someone who
itemized.
If all of the above conditions apply, the tax filer was eligible to file a 1040A or 1040EZ but filed a 1040 for other reasons.
Therefore, the tax filer should answer YES to question 34 (student) or 81 (parent) on the 2013-2014 FAFSA.
Persons filing a foreign tax return are considered to have filed a long-form 1040.
57
Disclaimer Concerning Federal Tax Information
The document relates to United States federal income tax information that may generally be applicable to those
individuals enrolled in post secondary/higher education programs.
This document is for general information only and does not constitute tax advice. The document represents general
information only and is based on the Internal Revenue code, its legislative history, existing and proposed United States
Treasury regulations, Internal Revenue Service administrative rulings, publications and notices, and court decisions in
eﬀect as of January 1, 2012, and all of which are subject to change or diﬀering interpretations (possibly with retroactive
eﬀect) and any change could aﬀect the continuing validity of the information contained in this document.
This information does not reflect every possible tax outcome, consequence and/or requirement that may be applicable to
individuals. Also, this information does not discuss the tax consequences or requirements if the individual is not a United
States citizen or a resident alien. Any state tax consequences and requirements will vary from state to state, and any tax
consequences and requirements of individuals who reside outside the United States will vary from jurisdiction to
jurisdiction.
Individuals are advised to consult their own tax advisors to determine the tax consequences and requirements particular
to their own individual situation, including any applicable state, local or foreign income and other tax consequences and
requirements that may apply.
58
Form
Sample IRS Form 1040: Eligible to File a 1040A/EZ?
1040
(99)
Department of the Treasury—Internal Revenue Service
2012
U.S. Individual Income Tax Return
For the year Jan. 1–Dec. 31, 2012, or other tax year beginning
OMB No. 1545-0074
, 2012, ending
Your first name and initial
Last name
Ethan L.
James
If a joint return, spouse’s first name and initial
Last name
Miranda R.
James
IRS Use Only—Do not write or staple in this space.
See separate instructions.
, 20
Your social security number
CCC CC CCCC
Spouse’s social security number
DDD DD DDDD
Apt. no.
Home address (number and street). If you have a P.O. box, see instructions.
c
123 Broken Arrow
City, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions).
Presidential Election Campaign
Anaheim, CA 92804
Foreign country name
Filing Status
Check only one
box.
Exemptions
1
6a
b
c
Single
Married filing jointly (even if only one had income)
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
If you did not
get a W-2,
see instructions.
Enclose, but do
not attach, any
payment. Also,
please use
Form 1040-V.
Adjusted
Gross
Income
Head of household (with qualifying person). (See instructions.) If
the qualifying person is a child but not your dependent, enter this
child’s name here. a
5
Qualifying widow(er) with dependent child
Yourself. If someone can claim you as a dependent, do not check box 6a .
Spouse
.
Dependents:
.
.
.
.
.
.
.
.
.
.
.
(2) Dependent’s
social security number
Last name
Bryan James
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
}
(4) if child under age 17
qualifying for child tax credit
(see instructions)
(3) Dependent’s
relationship to you
2
1
• did not live with
you due to divorce
or separation
(see instructions)
Son
EEE EE EEEE
Boxes checked
on 6a and 6b
No. of children
on 6c who:
• lived with you
Dependents on 6c
not entered above
d
Income
4
Married filing separately. Enter spouse’s SSN above
and full name here. a
(1) First name
If more than four
dependents, see
instructions and
check here a
Check here if you, or your spouse if filing
jointly, want $3 to go to this fund. Checking
Foreign postal code
a box below will not change your tax or
refund.
You
Spouse
Foreign province/state/county
2
3
Make sure the SSN(s) above
and on line 6c are correct.
.
.
.
.
.
.
.
.
.
.
8b
. .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
8a
.
.
.
.
.
.
.
9a
10
11
Qualified dividends . . . . . . . . . . .
9b
Taxable refunds, credits, or offsets of state and local income taxes
Alimony received . . . . . . . . . . . . . . .
.
.
.
.
.
.
.
.
.
.
.
.
10
11
12
13
14
Business income or (loss). Attach Schedule C or C-EZ . . . . . . . . .
Capital gain or (loss). Attach Schedule D if required. If not required, check here a
Other gains or (losses). Attach Form 4797 . . . . . . . . . . . . .
.
12
13
14
15a
16a
17
IRA distributions .
15a
b Taxable amount
. . .
Pensions and annuities 16a
b Taxable amount
. . .
Rental real estate, royalties, partnerships, S corporations, trusts, etc. Attach Schedule E
15b
16b
17
18
19
20a
Farm income or (loss). Attach Schedule F .
Unemployment compensation . . . .
Social security benefits 20a
18
19
20b
21
22
Other income. List type and amount
Combine the amounts in the far right column for lines 7 through 21. This is your total income
23
Educator expenses
24
Certain business expenses of reservists, performing artists, and
fee-basis government officials. Attach Form 2106 or 2106-EZ
25
Health savings account deduction. Attach Form 8889
.
24
25
26
27
28
Moving expenses. Attach Form 3903 . . . . . .
Deductible part of self-employment tax. Attach Schedule SE .
Self-employed SEP, SIMPLE, and qualified plans
. .
26
27
28
29
30
31a
Self-employed health insurance deduction
Penalty on early withdrawal of savings . .
.
.
.
.
.
.
.
.
32
33
34
Alimony paid b Recipient’s SSN a
IRA deduction . . . . . . .
Student loan interest deduction . .
Tuition and fees. Attach Form 8917 .
29
30
31a
.
.
.
.
.
.
.
.
.
.
.
.
32
33
34
35
36
37
Domestic production activities deduction. Attach Form 8903
35
Add lines 23 through 35 . . . . . . . . . . . . .
Subtract line 36 from line 22. This is your adjusted gross income
7
8a
b
9a
b
Total number of exemptions claimed
.
.
.
.
Wages, salaries, tips, etc. Attach Form(s) W-2
.
Taxable interest. Attach Schedule B if required .
Tax-exempt interest. Do not include on line 8a .
Ordinary dividends. Attach Schedule B if required
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. . . . . .
. . . . . .
b Taxable amount
.
.
.
.
.
.
a
.
7
Add numbers on
lines above a
3
33,108 00
668 00
4,473 00
7,430 00
21
22
45,679 00
36
37
47 00
45,632 00
23
47 00
.
.
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
59
.
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a
Cat. No. 11320B
Form
1040
(2012)
Page 2
Form 1040 (2012)
Tax and
Credits
Standard
Deduction
for—
• People who
check any
box on line
39a or 39b or
who can be
claimed as a
dependent,
see
instructions.
• All others:
Single or
Married filing
separately,
$5,950
Married filing
jointly or
Qualifying
widow(er),
$11,900
Head of
household,
$8,700
Other
Taxes
38
Amount from line 37 (adjusted gross income)
39a
Check
if:
Sign
Here
Paid
Preparer
Use Only
.
.
}
.
.
.
.
.
.
Exemptions. Multiply $3,800 by the number on line 6d . . . . . . . . . . . .
Taxable income. Subtract line 42 from line 41. If line 42 is more than line 41, enter -0- . .
Form 4972 c
962 election
Tax (see instructions). Check if any from: a
Form(s) 8814 b
44
45
46
Alternative minimum tax (see instructions). Attach Form 6251 .
Add lines 44 and 45 . . . . . . . . . . . . . .
.
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.
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47
48
Foreign tax credit. Attach Form 1116 if required .
Credit for child and dependent care expenses. Attach Form 2441
47
48
49
50
51
Education credits from Form 8863, line 19 . . . . .
Retirement savings contributions credit. Attach Form 8880
Child tax credit. Attach Schedule 8812, if required . . .
49
50
51
52
53
54
55
Residential energy credits. Attach Form 5695 . . . .
52
3800 b
8801 c
Other credits from Form: a
53
Add lines 47 through 53. These are your total credits . . . . .
Subtract line 54 from line 46. If line 54 is more than line 46, enter -0-
56
57
Self-employment tax. Attach Schedule SE . . . .
Unreported social security and Medicare tax from Form:
58
59a
b
Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required
Household employment taxes from Schedule H
. . . .
a
4137
.
.
.
.
.
a
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.
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.
.
.
.
b
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. .
8919
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.
First-time homebuyer credit repayment. Attach Form 5405 if required .
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.
Federal income tax withheld from Forms W-2 and 1099 . .
2012 estimated tax payments and amount applied from 2011 return
64a
b
Earned income credit (EIC) . . . . . .
Nontaxable combat pay election
64b
Additional child tax credit. Attach Schedule 8812 .
.
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.
a
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.
67
68
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69
70
71
72
. . . .
69
Credit for federal tax on fuels. Attach Form 4136 . . . .
70
Credits from Form: a
2439 b
Reserved c
8801 d
8885 71
Add lines 62, 63, 64a, and 65 through 71. These are your total payments .
73
If line 72 is more than line 61, subtract line 61 from line 72. This is the amount you overpaid
2,479 00
1,660 00
819 00
82 00
55
56
57
447 00
60
61
1,348 00
65
66
440 00
67
68
Excess social security and tier 1 RRTA tax withheld
75
76
77
00
00
00
00
00
3,512 00
62
63
64a
American opportunity credit from Form 8863, line 8 .
Reserved . . . . . . . . . . . . .
Amount paid with request for extension to file . .
65
66
44
45
46
58
59a
59b
Other taxes. Enter code(s) from instructions
Add lines 55 through 60. This is your total tax
43
54
a
.
.
11,900
33,732
11,400
22,332
2,479
1,000 00
.
.
40
41
42
660 00
.
.
38
Total boxes
checked a 39a
42
43
.
.
.
a
.
Amount of line 73 you want refunded to you. If Form 8888 is attached, check here . a
X X X X X X X X X a c Type: Checking
Routing number
Savings
Account number
X X X X X X X X X X X X X X X X X
Amount of line 73 you want applied to your 2013 estimated tax a 75
Amount you owe. Subtract line 72 from line 61. For details on how to pay, see instructions a
77
Estimated tax penalty (see instructions) . . . . . . .
Do you want to allow another person to discuss this return with the IRS (see instructions)?
Designee’s
name a
Phone
no. a
3,952 00
2,604 00
2,604 00
72
73
74a
76
Yes. Complete below.
No
Personal identification
a
number (PIN)
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief,
they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Date
F
Joint return? See
instructions.
Keep a copy for
your records.
.
Blind.
Blind.
39b
74a
b
Direct deposit?
See
a d
Third Party
Designee
.
.
.
a
Amount
You Owe
.
If your spouse itemizes on a separate return or you were a dual-status alien, check here a
63
instructions.
.
Itemized deductions (from Schedule A) or your standard deduction (see left margin)
Subtract line 40 from line 38
. . . . . . . . . . . . . . . . .
b
Payments 62
Refund
.
40
41
60
61
If you have a
qualifying
child, attach
Schedule EIC.
{
.
You were born before January 2, 1948,
Spouse was born before January 2, 1948,
45,632 00
Spouse’s signature. If a joint return, both must sign.
Date
Daytime phone number
Contractor
(555) 627-8937
Spouse’s occupation
2/1/2013
Print/Type preparer’s name
Firm’s name
Your occupation
2/1/2013
Preparer’s signature
If the IRS sent you an Identity Protection
PIN, enter it
here (see inst.)
PTIN
Check
if
self-employed
Teleinterviewer
Date
a
Firm's EIN
Firm’s address a
Phone no.
a
Form 1040 (2012)
* Line 67 was shaded by the IRS and is not relevant to verification
60
Sample IRS Form 1040: Eligible to File a 1040A/EZ?
This Product Contains Sensitive Taxpayer Data
Request Date: 02-20-2013
Response Date: 02-20-2013
Tracking Number: XXXXXXXXXXXX
Tax Return Transcript
SSN Provided: CCC-CC-CCCC
Tax Period Ending: Dec. 31, 2012
The following items reflect the amount as shown on the return (PR), and the
amount as adjusted (PC), if applicable. They do not show subsequent activity on
the account.
SSN: CCC-CC-CCCC
SPOUSE SSN: DDD-DD-DDDD
NAME(S) SHOWN ON RETURN: ETHAN L & MIRANDA R JAMES
ADDRESS: 123 BROKEN ARROW
ANAHEIM, CA 92804
FILING STATUS:
FORM NUMBER:
CYCLE POSTED:
RECEIVED DATE:
REMITTANCE:
EXEMPTION NUMBER:
DEPENDENT 1 NAME CTRL:
DEPENDENT 1 SSN:
DEPENDENT 2 NAME CTRL:
DEPENDENT 2 SSN:
DEPENDENT 3 NAME CTRL:
DEPENDENT 3 SSN:
DEPENDENT 4 NAME CTRL:
DEPENDENT 4 SSN:
IDENTITY THEFT PERSONAL ID NUMBER:
PREPARER SSN:
PREPARER EIN:
Married Filing Joint
1040
20130605
Apr. 15, 2013
$0.00
3
JAME
EEE-EE-EEEE
000000
XXXXX
XX-XXXX
Income
10
11
12
13
14
17
18
WAGES, SALARIES, TIPS, ETC:............................................. $33,108.00
TAXABLE INTEREST INCOME: SCH B:.............................................. $0.00
TAX-EXEMPT INTEREST:......................................................... $0.00
ORDINARY DIVIDEND INCOME: SCH B:............................................. $0.00
QUALIFIED DIVIDENDS:......................................................... $0.00
REFUNDS OF STATE/LOCAL TAXES:................................................ $0.00
ALIMONY RECEIVED:............................................................ $0.00
BUSINESS INCOME OR LOSS (Schedule C):...................................... $668.00
BUSINESS INCOME OR LOSS: SCH C PER COMPUTER:............................... $668.00
CAPITAL GAIN OR LOSS: (Schedule D):.......................................... $0.00
CAPITAL GAINS OR LOSS: SCH D PER COMPUTER:................................... $0.00
OTHER GAINS OR LOSSES: (Form 4797):.......................................... $0.00
TOTAL IRA DISTRIBUTIONS:..................................................... $0.00
TAXABLE IRA DISTRIBUTIONS:............................................... $4,473.00
TOTAL PENSIONS AND ANNUITIES:................................................ $0.00
TAXABLE PENSION/ANNUITY AMOUNT:.............................................. $0.00
RENT/ROYALTY/PARTNERSHIP/ESTATE (Schedule E):................................ $0.00
RENT/ROYALTY/PARTNERSHIP/ESTATE (Schedule E) PER COMPUTER:................... $0.00
RENT/ROTALTY INCOME/LOSS PER COMPUTER:....................................... $0.00
ESTATE/TRUST INCOME/LOSS PER COMPUTER:....................................... $0.00
PARTNERSHIP/S-CORP INCOME/LOSS PER COMPUTER:................................. $0.00
FARM INCOME OR LOSS (Schedule F):............................................ $0.00
FARM INCOME OR LOSS (Schedule F) PER COMPUTER:............................... $0.00
UNEMPLOYMENT COMPENSATION:............................................... $7,430.00
TOTAL SOCIAL SECURITY BENEFITS:.............................................. $0.00
61
Tracking Number:
XXXXXXXXXXXX
TAXABLE SOCIAL SECURITY BENEFITS:.............................................. $0.00
TAXABLE SOCIAL SECURITY BENEFITS PER COMPUTER:................................. $0.00
21 OTHER INCOME:.................................................................. $0.00
SCHEDULE EIC SE INCOME PER COMPUTER:......................................... $621.00
SCHEDULE EIC EARNED INCOME PER COMPUTER:.................................. $33,729.00
SCH EIC DISQUALIFIED INC COMPUTER:............................................. $0.00
TOTAL INCOME:............................................................. $45,679.00
TOTAL INCOME PER COMPUTER:................................................ $45,679.00
Adjustments to Income
24
25
26
27
28
29
30
31a
35
EDUCATOR EXPENSES:
EDUCATOR EXPENSES PER COMPUTER:................................................ $0.00
RESERVIST AND OTHER BUSINESS EXPENSE:.......................................... $0.00
HEALTH SAVINGS ACCT DEDUCTION:................................................. $0.00
HEALTH SAVINGS ACCT DEDUCTION PER COMPUTER:.................................... $0.00
MOVING EXPENSES: F3903:........................................................ $0.00
SELF EMPLOYMENT TAX DEDUCTION:................................................ $47.00
SELF EMPLOYMENT TAX DEDUCTION PER COMPUTER:................................... $47.00
KEOGH/SEP CONTRIBUTION DEDUCTION:.............................................. $0.00
SELF-EMP HEALTH INS DEDUCTION:................................................. $0.00
EARLY WITHDRAWAL OF SAVINGS PENALTY:........................................... $0.00
ALIMONY PAID SSN:.............................................................. $0.00
ALIMONY PAID:.................................................................. $0.00
IRA DEDUCTION:................................................................. $0.00
IRA DEDUCTION PER COMPUTER:.................................................... $0.00
STUDENT LOAN INTEREST DEDUCTION:............................................... $0.00
STUDENT LOAN INTEREST DEDUCTION PER COMPUTER:.................................. $0.00
TUITION AND FEES DEDUCTION:.................................................... $0.00
TUITION AND FEES DEDUCTION PER COMPUTER:....................................... $0.00
JURY DUTY PAY DEDUCTION:....................................................... $0.00
DOMESTIC PRODUCTION ACTIVITIES DEDUCTION:...................................... $0.00
OTHER ADJUSTMENTS:............................................................. $0.00
ARCHER MSA DEDUCTION:.......................................................... $0.00
ARCHER MSA DEDUCTION PER COMPUTER:............................................. $0.00
TOTAL ADJUSTMENTS:............................................................ $47.00
TOTAL ADJUSTMENTS PER COMPUTER:............................................... $47.00
ADJUSTED GROSS INCOME:.................................................... $45,632.00
ADJUSTED GROSS INCOME PER COMPUTER:....................................... $45,632.00
Tax and Credits
40*
43
44
47
65-OR-OVER:...................................................................... NO
BLIND:........................................................................... NO
SPOUSE 65-OR-OVER:............................................................... NO
SPOUSE BLIND:.................................................................... NO
STANDARD DEDUCTION PER COMPUTER:.......................................... $11,900.00
ADDITIONAL STANDARD DEDUCTION PER COMPUTER:.................................... $0.00
TAX TABLE INCOME PER COMPUTER:............................................ $33,732.00
EXEMPTION AMOUNT PER COMPUTER:............................................ $11,400.00
TAXABLE INCOME:........................................................... $22,332.00
TAXABLE INCOME PER COMPUTER:.............................................. $22,332.00
TOTAL POSITIVE INCOME PER COMPUTER:....................................... $45,679.00
TENTATIVE TAX:............................................................. $2,479.00
TENTATIVE TAX PER COMPUTER:................................................ $2,479.00
FORM 8814 ADDITIONAL TAX AMOUNT:............................................... $0.00
TAX ON INCOME LESS SOC SEC INCOME PER COMPUTER:................................ $0.00
FORM 6251 ALTERNATIVE MINIMUM TAX:............................................. $0.00
FORM 6251 ALTERNATIVE MINIMUM TAX PER COMPUTER:................................ $0.00
FOREIGN TAX CREDIT:............................................................ $0.00
FOREIGN TAX CREDIT PER COMPUTER:............................................... $0.00
FOREIGN INCOME EXCLUSION PER COMPUTER:......................................... $0.00
FOREIGN INCOME EXCLUSION TAX PER COMPUTER:..................................... $0.00
CHILD & DEPENDENT CARE CREDIT:................................................. $0.00
CHILD & DEPENDENT CARE CREDIT PER COMPUTER:.................................... $0.00
CREDIT FOR ELDERLY AND DISABLED:............................................... $0.00
CREDIT FOR ELDERLY AND DISABLED PER COMPUTER:.................................. $0.00
EDUCATION CREDIT:............................................................ $660.00
EDUCATION CREDIT PER COMPUTER:............................................... $660.00
GROSS EDUCATION CREDIT PER COMPUTER:......................................... $660.00
RETIREMENT SAVINGS CNTRB CREDIT:............................................... $0.00
RETIREMENT SAVINGS CNTRB CREDIT PER COMPUTER:.................................. $0.00
*The 'Standard Deduction per Computer' line amount will show as a zero for someone who itemized.
62
Tracking Number:
XXXXXXXXXXXX
PRIM RET SAV CNTRB: F8880 LN6A:................................................ $0.00
SEC RET SAV CNTRB: F8880 LN6B:................................................. $0.00
TOTAL RETIREMENT SAVINGS CONTRIBUTION: F8880 CMPTR:............................ $0.00
RESIDENTIAL ENERGY CREDIT:..................................................... $0.00
52 RESIDENTIAL ENERGY CREDIT PER COMPUTER:........................................ $0.00
CHILD TAX CREDIT:.......................................................... $1,000.00
CHILD TAX CREDIT PER COMPUTER:............................................. $1,000.00
ADOPTION CREDIT: F8839:........................................................ $0.00
ADOPTION CREDIT PER COMPUTER:.................................................. $0.00
FORM 8839 REFUND ADOPTION CREDIT AMOUNT:....................................... $0.00
DC 1ST TIME HOMEBUYERS CREDIT:................................................. $0.00
DC 1ST TIME HOMEBUYERS CREDIT PER COMPUTER:.................................... $0.00
FORM 8396 MORTGAGE CERTIFICATE CREDIT:......................................... $0.00
FORM 8396 MORTGAGE CERTIFICATE CREDIT PER COMPUTER:............................ $0.00
53 F3800, F8801 AND OTHER CREDIT AMOUNT:.......................................... $0.00
FORM 3800 GENERAL BUSINESS CREDITS:............................................ $0.00
FORM 3800 GENERAL BUSINESS CREDITS PER COMPUTER:............................... $0.00
PRIOR YR MIN TAX CREDIT: F8801:................................................ $0.00
PRIOR YR MIN TAX CREDIT: F8801 PER COMPUTER:................................... $0.00
F8834 ELECTRIC VEHICLE CREDIT AMOUNT:.......................................... $0.00
F8936 ELECTRIC MOTOR VEHICLE CREDIT AMOUNT:.................................... $0.00
F8910 ALTERNATIVE MOTOR VEHICLE CREDIT AMOUNT:................................. $0.00
OTHER CREDITS:................................................................. $0.00
TOTAL CREDITS:............................................................. $1,660.00
TOTAL CREDITS PER COMPUTER:................................................ $1,660.00
INCOME TAX AFTER CREDITS PER COMPUTER:....................................... $819.00
Other Taxes
SE TAX:....................................................................... $82.00
56 SE TAX PER COMPUTER:.......................................................... $82.00
SOCIAL SECURITY AND MEDICARE TAX ON UNREPORTED TIPS:........................... $0.00
57 SOCIAL SECURITY AND MEDICARE TAX ON UNREPORTED TIPS PER COMPUTER:.............. $0.00
TAX ON QUALIFIED PLANS F5329 (PR):........................................... $447.00
58 TAX ON QUALIFIED PLANS F5329 PER COMPUTER:................................... $447.00
IRAF TAX PER COMPUTER:......................................................... $0.00
TP TAX FIGURES (REDUCED BY IRAF) PER COMPUTER:............................. $1,348.00
IMF TOTAL TAX (REDUCED BY IRAF) PER COMPUTER:.............................. $1,348.00
ADVANCED EARNED INCOME CREDIT:................................................. $0.00
RECOVERY REBATE CREDIT AMOUNT:................................................. $0.00
UNPAID FICA ON REPORTED TIPS:.................................................. $0.00
60 OTHER TAXES:................................................................... $0.00
RECAPTURE TAX F8611:........................................................... $0.00
HOUSEHOLD EMPLOYMENT TAXES:.................................................... $0.00
59a HOUSEHOLD EMPLOYMENT TAXES PER COMPUTER:....................................... $0.00
RECAPTURE TAXES:............................................................... $0.00
TOTAL ASSESSMENT PER COMPUTER:............................................. $1,348.00
TOTAL TAX LIABILITY TP FIGURES:............................................ $1,348.00
TOTAL TAX LIABILITY TP FIGURES PER COMPUTER:............................... $1,348.00
Payments
FEDERAL INCOME TAX WITHHELD:............................................... $3,512.00
COBRA PREMIUM SUBSIDY:......................................................... $0.00
ESTIMATED TAX PAYMENTS:........................................................ $0.00
MAKING WORK PAY AND GOV’T RET CREDIT:.......................................... $0.00
MAKING WORK PAY AND GOV’T RET CREDIT PER COMPUTER:............................. $0.00
MAKING WORK PAY AND GOV’T RET CREDIT VERIFIED:................................. $0.00
REFUNDABLE EDUCATION CREDIT:................................................. $440.00
REFUNDABLE EDUCATION CREDIT PER COMPUTER:.................................... $440.00
REFUNDABLE EDUCATION CREDIT VERIFIED:.......................................... $0.00
EARNED INCOME CREDIT:.......................................................... $0.00
EARNED INCOME CREDIT PER COMPUTER:............................................. $0.00
EARNED INCOME CREDIT NONTAXABLE COMBAT PAY:.................................... $0.00
SCHEDULE M NONTAXABLE COMBAT PAY:.............................................. $0.00
SCHEDULE 8812 NONTAXABLE COMBAT PAY:........................................... $0.00
69 EXCESS SOCIAL SECURITY & RRTA TAX WITHHELD:.................................... $0.00
SCHEDULE 8812 TOT SS/MEDICARE WITHHELD:........................................ $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT:..................................... $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT PER COMPUTER:........................ $0.00
SCHEDULE 8812 ADDITIONAL CHILD TAX CREDIT VERIFIED:............................ $0.00
63
Tracking Number:
XXXXXXXXXXXX
68 AMOUNT PAID WITH FORM 4868:.................................................... $0.00
FORM 2439 REGULATED INVESTMENT COMPANY CREDIT:................................. $0.00
FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS:..................................... $0.00
70 FORM 4136 CREDIT FOR FEDERAL TAX ON FUELS PER COMPUTER:........................ $0.00
HEALTH COVERAGE TX CR: F8885:.................................................. $0.00
FORM 8801 REFUNDABLE CREDIT FOR PRIOR YEAR MIN. TAX:........................... $0.00
FIRST TIME HOME BUYER CREDIT PER COMPUTER:..................................... $0.00
FIRST TIME HOME BUYER CREDIT:.................................................. $0.00
FIRST TIME HOME BUYER CREDIT VERIFIED:......................................... $0.00
PRIMARY NAP FIRST TIME HOME BUYER INSTALLMENT AMT:............................. $0.00
SECONDARY NAP FIRST TIME HOME BUYER INSTALLMENT AMT:........................... $0.00
59b FIRST TIME HOMEBUYER CREDIT REPAYMENT AMOUNT:.................................. $0.00
FORM 2555 COMBINED EARNED INCOME AMOUNT PER COMPUTER: ......................... $0.00
FORM 5405 TOTAL HOMEBUYERS CREDIT REPAYMENT PER COMPUTER:...................... $0.00
SMALL EMPLOYER HEALTH INSURANCE PER COMPUTER:.................................. $0.00
SMALL EMPLOYER HEALTH INSURANCE PER COMPUTER (2):.............................. $0.00
71 FORM 2439, 8801, and OTHER CREDIT TOTAL AMT:................................... $0.00
TOTAL PAYMENTS:............................................................ $3,952.00
TOTAL PAYMENTS PER COMPUTER:............................................... $3,952.00
Refund or Amount Owed
REFUND AMOUNT:............................................................ $-2,604.00
APPLIED TO NEXT YEAR’S ESTIMATED TAX:.......................................... $0.00
ESTIMATED TAX PENALTY:......................................................... $0.00
TAX ON INCOME LESS STATE REFUND PER COMPUTER:.................................. $0.00
BAL DUE/OVER PYMT USING TP FIG PER COMPUTER:.............................. $-2,604.00
BAL DUE/OVER PYMT USING COMPUTER FIGURES:................................. $-2,604.00
FORM 8888 TOTAL REFUND PER COMPUTER:........................................... $0.00
Third Party Designee
THIRD PARTY DESIGNEE ID NUMBER:.....................................................
AUTHORIZATION INDICATOR:........................................................... 0
THIRD PARTY DESIGNEE NAME:..........................................................
Interest and Dividends
GROSS SCHEDULE B INTEREST:..................................................... $0.00
TAXABLE INTEREST INCOME:....................................................... $0.00
EXCLUDABLE SAVINGS FROM BOND INT:.............................................. $0.00
GROSS SCHEDULE B DIVIDENDS:.................................................... $0.00
DIVIDEND INCOME:............................................................... $0.00
FOREIGN ACCOUNTS IND:........................................................... NONE
FOREIGN COUNTRY FINANCIAL INTEREST/SIGNATURE AUTHORITY:......................... NONE
Schedule C--Profit or Loss From Business
SOCIAL SECURITY NUMBER:.................................................. CCC-CC-CCCC
EMPLOYER ID NUMBER:..................................................................
BUSINESS NAME:.......................................................................
DESCRIPTION OF BUSINESS/PROFESSION:..................................... CONSTRUCTION
NAICS CODE:................................................................... 238120
ACCT MTHD:...................................................................... Cash
FIRST TIME SCHEDULE C FILED:....................................................... Y
STATUTORY EMPLOYEE IND:............................................................ N
INCOME
GROSS RECEIPTS OR SALES:................................................... $4,875.00
RETURNS AND ALLOWANCES:........................................................ $0.00
NET GROSS RECEIPTS:........................................................ $4,875.00
COST OF GOODS SOLD:........................................................ $2,115.00
SCHEDULE C FORM 1099 REQUIRED:.................................................... NO
SCHEDULE C FORM 1099 FILED:..................................................... NONE
OTHER INCOME:.................................................................. $0.00
64
Tracking Number:
XXXXXXXXXXXX
EXPENSES
CAR AND TRUCK EXPENSES:........................................................ $0.00
DEPRECIATION:.................................................................. $0.00
INSURANCE (OTHER THAN HEALTH):................................................. $0.00
MORTGAGE INTEREST:............................................................. $0.00
LEGAL AND PROFESSIONAL SERVICES:............................................... $0.00
REPAIRS AND MAINTENANCE:....................................................... $0.00
TRAVEL:........................................................................ $0.00
MEALS AND ENTERTAINMENT:..................................................... $122.00
WAGES:......................................................................... $0.00
OTHER EXPENSES:.............................................................. $840.00
TOTAL EXPENSES:............................................................ $2,092.00
EXP FOR BUSINESS USE OF HOME:.................................................. $0.00
SCH C NET PROFIT OR LOSS PER COMPUTER:....................................... $668.00
AT RISK CD:..........................................................................
OFFICE EXPENSE AMOUNT:....................................................... $542.00
UTILITIES EXPENSE AMOUNT:.................................................... $422.00
COST OF GOODS SOLD
INVENTORY AT BEGINNING OF YEAR:................................................ $0.00
INVENTORY AT END OF YEAR:...................................................... $0.00
Schedule SE--Self-Employment Tax
SSN OF SELF-EMPLOYED TAXPAYER:........................................... CCC-CC-CCCC
NET FARM PROFIT/LOSS: SCH F:................................................... $0.00
CONSERVATION RESERVE PROGRAM PAYMENTS:......................................... $0.00
NET NONFARM PROFIT/LOSS:..................................................... $668.00
TOTAL SE INCOME:............................................................. $668.00
SE QUARTERS COVERED:............................................................... 4
TOTAL SE TAX PER COMPUTER:.................................................... $81.92
SE INCOME COMPUTER VERIFIED:................................................... $0.00
SE INCOME PER COMPUTER:...................................................... $616.00
TOTAL NET EARNINGS PER COMPUTER:............................................. $616.00
LONG FORM ONLY
TENTATIVE CHURCH EARNINGS:..................................................... $0.00
TOTAL SOC SEC & RR WAGES:...................................................... $0.00
SE SS TAX COMPUTER:........................................................... $64.06
SE MEDICARE INCOME PER COMPUTER:............................................. $616.00
SE MEDICARE TAX PER COMPUTER:................................................. $17.86
SE FARM OPTION METHOD USED:........................................................ 0
SE OPTIONAL METHOD INCOME:..................................................... $0.00
Form 8863 - Education Credits (Hope and Lifetime Learning Credits)
PART I – EDUCATION CREDITS
STUDENT 1
STUDENT 1
STUDENT 2
STUDENT 2
STUDENT 3
STUDENT 3
TENTATIVE
NAME CNTRL:........................................................... JAME
SSN:........................................................... DDD-DD-DDDD
NAME CNTRL:................................................................
SSN:.......................................................................
NAME CNTRL:................................................................
SSN:.......................................................................
CREDIT AMOUNT:................................................... $1,100.00
65
Tracking Number:
XXXXXXXXXXXX
PART II – LIFETIME LEARNING CREDITS
TOTAL LIFETIME LEARNING CR QLFD EXP:........................................... $0.00
EDUCATIONAL INSTITUTION FEDERAL ID NUMBER STUDENT 1:....................... 000000000
SECOND EDUCATIONAL INSTITUTION FEDERAL ID NUMBER, STUDENT 1:............... 000000000
EDUCATIONAL INSTITUTION FEDERAL ID NUMBER STUDENT 2:....................... 000000000
SECOND EDUCATIONAL INSTITUTION FEDERAL ID NUMBER, STUDENT 2:............... 000000000
EDUCATIONAL INSTITUTION FEDERAL ID NUMBER STUDENT 3:....................... 000000000
SECOND EDUCATIONAL INSTITUTION FEDERAL ID NUMBER, STUDENT 3:............... 000000000
PRIOR YEAR HOPE SCHOLARSHIP OR AOT CREDIT CLAIMED STUDENT 1:...................... NO
ACADEMIC ELIGIBILITY, STUDENT 1:................................................. YES
POST-SECONDARY COMPLETE STUDENT 1:................................................ NO
FELONY CONVICTION STUDENT 1:...................................................... NO
PRIOR YEAR HOPE SCHOLARSHIP OR AOT CREDIT CLAIMED STUDENT 2:.................... NONE
ACADEMIC ELIGIBILITY, STUDENT 2:................................................ NONE
POST-SECONDARY COMPLETE STUDENT 2:.............................................. NONE
FELONY CONVICTION STUDENT 2:.................................................... NONE
PRIOR YEAR HOPE SCHOLARSHIP OR AOT CREDIT CLAIMED STUDENT 3:.................... NONE
ACADEMIC ELIGIBILITY, STUDENT 3:................................................ NONE
POST-SECONDARY COMPLETE STUDENT 3:.............................................. NONE
FELONY CONVICTION STUDENT 3:.................................................... NONE
VERIFIED NUMBER OF EDUCATION CREDIT ELIGIBLE STUDENTS................................
TOTAL LIFETIME LEARNING CR QLFD EXP PER COMPUTER:.............................. $0.00
PART III – ALLOWABLE EDUCATION CREDITS
GROSS EDUCATION CR PER COMPUTER:............................................. $660.00
TOTAL EDUCATION CREDIT AMOUNT:............................................... $660.00
TOTAL EDUCATION CREDIT AMOUNT PER COMPUTER:.................................. $660.00
This Product Contains Sensitive Taxpayer Data
66
Appendix E
IRS Transcript Request Forms
4506-T
Form
(Rev. January 2012)
Department of the Treasury
Internal Revenue Service
Request for Transcript of Tax Return
OMB No. 1545-1872
a
Request may be rejected if the form is incomplete or illegible.
Tip. Use Form 4506-T to order a transcript or other return information free of charge. See the product list below. You can quickly request transcripts by using
our automated self-help service tools. Please visit us at IRS.gov and click on "Order a Transcript" or call 1-800-908-9946. If you need a copy of your return, use
Form 4506, Request for Copy of Tax Return. There is a fee to get a copy of your return.
1a Name shown on tax return. If a joint return, enter the name
shown first.
1b First social security number on tax return, individual taxpayer identification
number, or employer identification number (see instructions)
2a If a joint return, enter spouse’s name shown on tax return.
2b Second social security number or individual taxpayer
identification number if joint tax return
3 Current name, address (including apt., room, or suite no.), city, state, and ZIP code (see instructions)
4 Previous address shown on the last return filed if different from line 3 (see instructions)
5 If the transcript or tax information is to be mailed to a third party (such as a mortgage company), enter the third party’s name, address,
and telephone number.
Caution. If the tax transcript is being mailed to a third party, ensure that you have filled in lines 6 through 9 before signing. Sign and date the form once
you have filled in these lines. Completing these steps helps to protect your privacy. Once the IRS discloses your IRS transcript to the third party listed
on line 5, the IRS has no control over what the third party does with the information. If you would like to limit the third party's authority to disclose your
transcript information, you can specify this limitation in your written agreement with the third party.
6
Transcript requested. Enter the tax form number here (1040, 1065, 1120, etc.) and check the appropriate box below. Enter only one tax form
number per request. a
a
Return Transcript, which includes most of the line items of a tax return as filed with the IRS. A tax return transcript does not reflect
changes made to the account after the return is processed. Transcripts are only available for the following returns: Form 1040 series,
Form 1065, Form 1120, Form 1120A, Form 1120H, Form 1120L, and Form 1120S. Return transcripts are available for the current year
and returns processed during the prior 3 processing years. Most requests will be processed within 10 business days . . . . . .
b
Account Transcript, which contains information on the financial status of the account, such as payments made on the account, penalty
assessments, and adjustments made by you or the IRS after the return was filed. Return information is limited to items such as tax liability
and estimated tax payments. Account transcripts are available for most returns. Most requests will be processed within 30 calendar days
.
c
Record of Account, which provides the most detailed information as it is a combination of the Return Transcript and the Account
Transcript. Available for current year and 3 prior tax years. Most requests will be processed within 30 calendar days . . . . . . .
7
8
Verification of Nonfiling, which is proof from the IRS that you did not file a return for the year. Current year requests are only available
after June 15th. There are no availability restrictions on prior year requests. Most requests will be processed within 10 business days . .
Form W-2, Form 1099 series, Form 1098 series, or Form 5498 series transcript. The IRS can provide a transcript that includes data from
these information returns. State or local information is not included with the Form W-2 information. The IRS may be able to provide this
transcript information for up to 10 years. Information for the current year is generally not available until the year after it is filed with the IRS.
For example, W-2 information for 2010, filed in 2011, will not be available from the IRS until 2012. If you need W-2 information for retirement
purposes, you should contact the Social Security Administration at 1-800-772-1213. Most requests will be processed within 45 days . . .
Caution. If you need a copy of Form W-2 or Form 1099, you should first contact the payer. To get a copy of the Form W-2 or Form 1099 filed
with your return, you must use Form 4506 and request a copy of your return, which includes all attachments.
9
Year or period requested. Enter the ending date of the year or period, using the mm/dd/yyyy format. If you are requesting more than four
years or periods, you must attach another Form 4506-T. For requests relating to quarterly tax returns, such as Form 941, you must enter
each quarter or tax period separately.
Check this box if you have notified the IRS or the IRS has notified you that one of the years for which you are requesting a transcript
involved identity theft on your federal tax return . . . . . . . . . . . . . . . . . . . . . . . . . . .
Caution. Do not sign this form unless all applicable lines have been completed.
Signature of taxpayer(s). I declare that I am either the taxpayer whose name is shown on line 1a or 2a, or a person authorized to obtain the tax
information requested. If the request applies to a joint return, either husband or wife must sign. If signed by a corporate officer, partner, guardian, tax
matters partner, executor, receiver, administrator, trustee, or party other than the taxpayer, I certify that I have the authority to execute Form 4506-T on
behalf of the taxpayer. Note. For transcripts being sent to a third party, this form must be received within 120 days of the signature date.
Phone number of taxpayer on line
1a or 2a
F F F
Sign
Here
Signature (see instructions)
Date
Title (if line 1a above is a corporation, partnership, estate, or trust)
Spouse’s signature
Date
For Privacy Act and Paperwork Reduction Act Notice, see page 2.
Cat. No. 37667N
67
Form 4506-T (Rev. 1-2012)
Form
4506T-EZ
Short Form Request for Individual Tax Return Transcript
OMB No. 1545-2154
(Rev. January 2012)
Department of the Treasury
Internal Revenue Service
a Request
may not be processed if the form is incomplete or illegible.
Tip. Use Form 4506T-EZ to order a 1040 series tax return transcript free of charge, or you can quickly request transcripts by using our automated self-help
service tools. Please visit us at IRS.gov and click on “Order a Transcript” or call 1-800-908-9946.
1a Name shown on tax return. If a joint return, enter the name shown first.
1b First social security number or individual taxpayer
identification number on tax return
2a If a joint return, enter spouse’s name shown on tax return.
2b Second social security number or individual
taxpayer identification number if joint tax return
3 Current name, address (including apt., room, or suite no.), city, state, and ZIP code (see instructions)
4 Previous address shown on the last return filed if different from line 3 (see instructions)
5 If the transcript is to be mailed to a third party (such as a mortgage company), enter the third party’s name, address, and telephone number. The
IRS has no control over what the third party does with the tax information.
Third party name
Telephone number
Address (including apt., room, or suite no.), city, state, and ZIP code
Caution. If the tax transcript is being mailed to a third party, ensure that you have filled in line 6 before signing. Sign and date the form once you have
filled in this line. Completing this step helps to protect your privacy. Once the IRS discloses your IRS transcript to the third party listed on line 5, the
IRS has no control over what the third party does with the information. If you would like to limit the third party's authority to disclose your transcript
information, you can specify this limitation in your written agreement with the third party.
6
Year(s) requested. Enter the year(s) of the return transcript you are requesting (for example, “2008”). Most requests will be processed within
10 business days.
Check this box if you have notified the IRS or the IRS has notified you that one of the years for which you are requesting a transcript
involved identity theft on your federal tax return.
Note. If the IRS is unable to locate a return that matches the taxpayer identity information provided above, or if IRS records indicate that the return has
not been filed, the IRS may notify you or the third party that it was unable to locate a return, or that a return was not filed, whichever is applicable.
Caution. Do not sign this form unless all applicable lines have been completed.
Signature of taxpayer(s). I declare that I am the taxpayer whose name is shown on either line 1a or 2a. If the request applies to a joint return, either
husband or wife must sign. Note. For transcripts being sent to a third party, this form must be received within 120 days of the signature date.
Phone number of taxpayer
on line 1a or 2a
F
Signature (see instructions)
F
Sign
Here
Spouse’s signature
Date
Date
For Privacy Act and Paperwork Reduction Act Notice, see page 2.
Cat. No. 54185S
68
Form 4506T-EZ (Rev. 1-2012)
Appendix F
Policies and Procedures — Verification
34 CFR 668.53.
Schools must have written policies and procedures detailing the following verification items:
Item
Documents needed to satisfy
verification requirements.
Deadlines for students to submit
documentation for verification.
Consequences for failing to meet
verification deadlines.
Method and timeframe for notifying
students of award changes resulting
from verification, when applicable.
Required correction procedures for
students.
Procedures for referring overpayment
cases to ED.
Include in Policies
and Procedures





Provide in
Writing to
Student
Example

Use of IRS data retrieval tool, federal
income tax transcripts, signed
statements, W-2 Forms.

School will use date published in
Federal Register or a schoolestablished deadline.*

Student may be liable for previouslydisbursed aid and/or may have loss
of aid eligibility for the period.

School will send revised award
notification within two weeks of
verification completion.

School will make necessary
corrections based on documentation
received.
School will comply with existing
overpayment policies and
procedures.

* Federal Register date must be used for Pell Grant recipients.
69
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Appendix G
Deadlines and Consequences — Verification
34 CFR 668.60.
Schools must establish deadlines for students to submit verification documents. Pell Grant recipients must be allowed to
submit documents until the date published annually in the Federal Register, but all other aid recipients may have an
earlier date set by the school. If documents are not received by the established date, the school may not pay funds to the
student from any Title IV aid programs. Interim disbursements that were made and that are determined to exceed the
student's eligibility must be repaid by the school. Payments made before the student was selected for verification are
subject to overpayment regulations.
Regulations designate how funds are processed when documents are received after the deadlines.
Documents not received
by deadline…
Verification not
completed by the
deadline…
Valid SAR/ISIR
received after
Documents received deadline, but within
after deadline…
additional time
outlined in the
Federal Register...
N/A
N/A
School must pay
award amount based
on the corrected ISIR.
Pell Grants
Student forfeits award;
student must repay any
funds received for award
year.*
FSEOG
No further disbursements
N/A
allowed; student must repay
any funds received for
award year.
May, but not required
to, disburse funds.
N/A
FWS
No employment or
continued employment.
N/A
N/A
Perkins Loan
No further disbursements
N/A
allowed; student must repay
any funds received for
award year.
May, but not required
to, disburse funds.
N/A
Subsidized
Staﬀord Loan
No origination or
disbursements.
Institution must repay May, but not required
any funds received for to, disburse funds.
award year.**
N/A
N/A
* For Pell Grant purposes, documents include a valid SAR/ISIR.
** Based on cash management regulations outlined in 34 CFR 668.166(b).
71
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Appendix H
Case Study Answer
Verification Assessment Document
ISIR
Data
Document
Data
Household size
3
4
Number in college
1
Blank
Child support paid
$4,380
$0
Change to $0. Child support paid cannot be considered if
paid for a child reported in the household size.
N/A
N/A
None.
AGI
$45,632
$45,632
None.
U.S. tax paid
$1,348
$819
Untaxed IRA distributions
$0
$0
None.
Untaxed pensions
$0
$0
None.
Education credits
$660
$660
None.
IRA deductions
$0
$0
None.
Tax-exempt interest
$0
$0
None.
* Type of return filed
1040
1040
None.
Item
SNAP
Action/Notes
Change to 4 based on verification worksheet.
None. Information is not required when number in
college is 1.
Change the U.S. tax paid to $819 based on tax transcript.
Change response to “No” for FAFSA Q#34. Based on tax
transcript, student reported business income and is
therefore ineligible to have filed a 1040A/EZ. Student no
longer qualifies for Simplified EFC Formula.
* Eligible to file 1040A/EZ?
Yes
No
* Wages earned (student)
$8,108
$8,776
Change student’s wages to $8,776 based on tax
transcript. Student reported $668 as business income;
Schedule SE indicates income belongs to the student.
$25,000
None. It can be assumed that this figure is correct
because the diﬀerence between the combined wages
reported on the FAFSA and all related line items on the
tax transcript is the $668 reported as business income for
the student.
* Wages earned (spouse)
$25,000
* Denotes information which should be reviewed for potential conflicting information.
73