TRUE! You might have heard that you can’t complete the 2016–17 Free Application for Federal Student Aid (FAFSA®) until you file your 2015 taxes. This is actually a myth! The FAFSA allows you to use estimated financial information if you select “Will file” on the question about whether you’ve completed your 2015 tax return.
The subsequent questions will ask about “2015” financial information, but you’re allowed to use 2014 numbers in these fields for now so you can get your FAFSA submitted early. Don’t worry, you won’t get in trouble for using estimated financial information; just make sure you update your FAFSA after you and/or your parents file 2015 taxes. Below are answers to common questions about submitting a FAFSA before filing taxes.
Why is it important to fill out the FAFSA early?
Some states, schools, scholarships, and other aid programs have deadlines that occur before you’re able to file taxes. If you wait, you could miss out on that money unless you use estimates and submit the FAFSA early. Did you know that some aid is first come, first served? That means once the pool of funding runs out (awarded to the early birds), there won’t be any money left for late FAFSA filers. You can find state deadlines on the FAFSA website.
However, we do not have a listing of every school’s deadline since they’re all different. You have to check with each school about their FAFSA deadline. If there is a scholarship or grant you’re applying for, check their FAFSA deadline too. Submit your FAFSA by your earliest deadline to maximize your financial aid.
How do I fill out the FAFSA if I haven’t filed taxes?
If your income from 2015 was similar to your income from 2014, use your 2014 taxes to estimate your financial information. If your 2015 income was very different from your 2014 income, use the income estimator (available within the FAFSA) to estimate financial information rather than basing your estimates on your 2014 taxes. Just click on the blue Income Estimator button, and the calculator will expand.
How do I update my FAFSA once I’ve filed taxes?
After you file taxes, click Make FAFSA Corrections after logging in to fafsa.gov. Navigate to the “Finances” section and change your tax filing status to “Already completed.” From here, the FAFSA has a tool that allows you to automatically import tax information from the IRS into your FAFSA. This is called the IRS Data Retrieval Tool (IRS DRT) and it will be available on Feb. 7, 2016. You may not be able to use the IRS DRT immediately after you file taxes. You have to wait a few weeks after you file taxes before your tax data can be imported into the FAFSA.
TIP: Check out our blog with a step-by-step guide on how to use the IRS DRT!
After importing your tax information into the FAFSA, sign and submit your FAFSA. Remember, if you don’t see the confirmation page at fafsa.gov, you haven’t submitted your FAFSA yet. Be sure to read all the instructions as you sign and submit the FAFSA, and look for that confirmation page before you close your browser. Got it? Okay! Go meet those deadlines!
Sandra Vuong is a Digital Engagement Strategist at Federal Student Aid.