If
you have a child in college or about to enter it, then you probably know all
about the Free Application for Federal Student Aid, otherwise known as the
FAFSA.
However,
you might not know quite as much as you think. The FAFSA can be confusing and
frustrating, but if you bear with us and understand a few simple things, you’ll
find the whole process of filling it out and getting it sent in a whole lot
easier.
First
things first, the FAFSA and your tax returns are due around the same time.
However, you are not required to file taxes before filling out the FAFSA, so
don’t let that misconception keep you from getting the aid to which you and/or
your children are entitled.
Also,
bear in mind that FAFSA deadlines are of the utmost importance! If you miss the
deadline, then there’s a good chance you’re not going to get all of the award
money which you were quoted. Though the government may be willing to give you a
certain amount of money, you won’t see it if your school runs out before you
file!
Since
it’s more important to meet the school’s FASFA deadline than it is to file your
taxes first, you may have to estimate your income. Unless you’ve been through
some major financial changes, you’ll probably be just fine entering your income
amount from the previous year.
However,
if you have experienced big financial changes, the FASFA website offers an
“income estimator” that can help you to hazard a decent guess.
The good news is that, if you overestimate or underestimate,
you can always change things once you have filed your tax returns. You can use
the IRS Data Retrieval Tool to take the new and correct information and
transfer it over to your FASFA as a correction. Your other option is to have
your IRS tax return transcript sent to your child’s school.
If all of this sounds confusing, don’t worry! As you fill
out the FAFSA online, links and instructions will appear to make filling out
everything easier. Plus, you can always ask the financial aid office at your
child’s school for assistance. Most people, though, find the process fairly
simple, and these tips should help to make it even simpler!