what tax year does fafsa use for 2025 2028

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14-03-2025

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The FAFSA (Free Application for Federal Student Aid) uses tax information from the prior-prior year to determine your financial need for the award year. This means the tax year used for the FAFSA will vary depending on the award year. Let's break it down for the 2025-2028 award years:

FAFSA Tax Year Requirements by Award Year

The following table clearly shows which tax year's information the FAFSA uses for the specified academic award year:

In short: To determine the tax year used for your FAFSA, subtract two years from the academic year you're applying for.

Understanding the FAFSA and Tax Information

The FAFSA uses your tax information to calculate your Expected Family Contribution (EFC). Your EFC is an indicator of your family's financial ability to contribute to your education. The lower your EFC, the more federal student aid you may qualify for.

Therefore, accurately reporting your tax information is crucial. Any discrepancies can lead to delays in processing your FAFSA and potentially affect your eligibility for financial aid.

What information from the tax return is needed?

The FAFSA doesn't require you to upload your tax return itself. However, you'll need specific information from your tax return, including:

• Adjusted Gross Income (AGI): This is your gross income minus certain deductions.
• Taxable Income: This is your income after all adjustments and deductions.
• W-2 Information: If applicable, your W-2 will provide details on earnings and taxes withheld.
• 1099 Information: This form reports income from sources like dividends, interest, and capital gains.
• IRA contributions: If you made IRA contributions they can impact your EFC.
• Tax Liability: The total amount of tax owed (or received as a refund).

It's essential to have this information readily available when completing your FAFSA application. Gather these details before you start the application process to streamline the procedure.

Frequently Asked Questions (FAQs)

Q: What if my tax information changes after I submit my FAFSA?

A: If there's a significant change in your financial circumstances after submitting your FAFSA, you should contact the financial aid office of the schools you've applied to. They may require you to update your information.

Q: What if I don't file taxes?

A: Even if you don't file taxes, you'll still need to complete the FAFSA. You may be able to estimate your income based on pay stubs or other documentation. The FAFSA instructions provide guidance on handling these situations.

Q: My parents are separated/divorced. Whose tax information do I use?

A: The FAFSA instructions provide detailed guidance on which parent's tax information to use in cases of separation or divorce. Generally, the custodial parent's information is used, but this can vary depending on your specific circumstances.

Q: Where can I find more information?

A: For the most up-to-date and accurate information, always refer to the official Federal Student Aid website: studentaid.gov.

By understanding which tax year the FAFSA uses, you can ensure you have the correct information ready and complete your application accurately and efficiently. This helps in securing the financial aid you need to pursue your education. Remember to check the official FAFSA website for the most current information, as policies can change.