Tax Return Documentation Instructions
Deadlines for Submitting Documents
IRS Data Retrieval Tool Video Tutorial
WHAT IS VERIFICATION?
Verification is the process of comparing the information reported on the Free Application for Federal Student Aid (FAFSA) with information on your tax returns and other financial documents and making corrections as necessary. Verification is a process used by the College to check for accuracy of FAFSA data. The purpose is to reduce error rates in applicant-reported data and to assure eligible applicants receive the correct amount of financial assistance. It is a requirement via federal financial aid regulations.
WHO MUST COMPLETE VERIFICATION?
The Federal Central Processing Center (CPS) selects financial aid applicants for verification and targets the verification of error-prone data items. When using FAFSA online, students and the parents of dependent students, who indicate they already completed federal income tax returns are eligible to retrieve income data directly from the Internal Revenue Service (IRS) with the IRS Data Retrieval tool. This time-saving process allows eligible financial aid applicants and the parents of dependent students to access their IRS tax record and to retrieve, directly from the IRS, certain data and information from income tax returns and to automatically transfer that information to the FAFSA application. The College may also select an applicant if there appears to be conflicting or inconsistent information on the application.
WHAT INFORMATION IS NEEDED FOR VERIFICATION?
In accordance with federal financial aid regulations, colleges are required to rely on the IRS Data Retrieval tool or IRS tax returns as primary sources of documentation for verification purposes. If requested, all applicants must complete and sign any requested documents to verify information on the FAFSA. Dependent students must have a parent sign any requested documents.
If requested, applicants must either use the IRS Data Retrieval tool or submit a signed copy of their Federal income tax return for 2021 (1040 and tax schedules 1, 2, 3 if filed). If requested, applicants who are dependent also must have their parent(s) either use the IRS Data Retrieval tool or submit a signed copy of their Federal income tax return for 2021 (1040 and tax schedules 1, 2, 3 if filed).
Please read all of the instructions on the forms and complete all of the sections with the required information.
DOCUMENTATION REQUIRED FOR VERIFICATION:
- IRS Data Retrieval tool:
If there are no special tax filing circumstances, applicants should use the IRS Data Retrieval tool on the 2023–2024 FAFSA in lieu of submitting a tax return. Newly retrieved and unchanged IRS tax data retrieved by the tax filer while correcting the FAFSA is considered acceptable documentation in lieu of a tax return.
Further detailed instructions and information about using the IRS Data Retrieval Tool are available here: Tax Return Documentation Instructions
2. Signed 1040 federal income tax return: If you are not eligible for the IRS Data Retrieval tool, you can submit a signed copy of the 2021 Federal Income tax return (1040 and tax schedules 1, 2, 3 if filed) that the tax filer submitted to the IRS or other tax authorities.
3. Official IRS tax return transcript for 1040 filers:
If you are not eligible to use the IRS Data Retrieval tool, you can also submit a copy of the 2021 tax “Return Transcript” directly from the IRS (including all pages and schedules). Please refer to our 2023-2024 IRS Tax Return Documentation Instructions regarding the steps necessary to request an IRS transcript, free of charge.
The “Return Transcript” is the IRS document that should be requested for financial aid verification. Do not select “Account Transcript” as this is not a copy of the entire tax return and is not acceptable by the Office of Student Financial Services.
Please write the student’s name and school ID number on tax documents prior to submission to the office.
4. Non-tax filers:
If a tax return is not required to be filed with the IRS, the applicant must report all non-taxable income received, as well as the amount and sources of any income earned. All 2021 W-2’s from employers must be submitted for the non-tax filer(s). Except for dependent students, an IRS confirmation of non-filing status is also required for those who are not required to file federal tax returns in 2021. You can obtain an IRS confirmation of non-filing for 2021 from the IRS by using the 2021 IRS Confirmation of IRS Non-Filing and checking box 7. For section 9, list the year of 12/31/2021. This confirmation of non-filing from the IRS has to be dated on or after October 1, 2022. A Low Income Verification Form may also be requested.
5. Special Tax Filing Circumstances:
The U.S. Department of Education states that some tax filers with special tax filing circumstances are ineligible to use the IRS Data Retrieval tool and may be selected for verification.
The U.S. Department of Education describes tax filers as having special tax filing circumstances for verification if they:
- Are the dependent student’s legal parents, are unmarried, and live together.
- Filed a joint 2021 tax return and are:
- – Separated, divorced, or widowed.
- – Married to someone other than the individual included on the joint tax return.
- Had a change in marital status after the end of the 2021 tax year on December 31, 2021.
- Are a married independent applicant with a spouse who filed separate 2021 tax returns.
- Are the married parents of a dependent student who filed separate 2021 tax returns.
- In 2021, filed a foreign tax return or a non-U.S. tax return and therefore cannot obtain a tax transcript from the Internal Revenue Service (IRS).
- Are tax filers who owe funds or filed amended IRS tax returns.
- Are victims of identity theft.
- Are tax filers who have IRS tax filing extensions beyond the automatic six-month extension for the 2021 tax year.
- Are an individual called up for active duty or for qualifying National Guard duty during a war or other military operation or national emergency.
Generally a signed copy of the 2021 income tax return (1040 with any tax schedules 1, 2, or 3) is required. If you have a special tax filing circumstance, please contact Student Financial Services at SUNY New Paltz by phone at 845-257-3250 or by e-mail at email@example.com for questions about additional documentation that may be required to satisfy the applicant’s verification requirements.
ARE THERE ANY OTHER DOCUMENTS THAT MAY BE REQUESTED?
Other documents may be requested to resolve conflicting data or provide clarification of reported data. These documents may include bank statements, brokerage statements, divorce/separation agreements, child support documentation, asset verification worksheets, W2’s, and low income verification forms. If we require such documents then we will email you links to the required forms found on our Forms Page. In some situations, additional income tax return documents and tax schedules may be requested for clarification of reported data.
WHAT HAPPENS AFTER VERIFICATION DOCUMENTS ARE SUBMITTED?
Documents are reviewed for completeness and accuracy. If everything is complete and accurate an award letter will be sent via email within a week of being reviewed. If additional documents are needed, a request is sent out via email. If corrections need to be made, the College will send the data to the Federal Central Processing System (CPS). CPS will calculate a new Expected Family Contribution (EFC) and send the results to you and the College. After the College receives the corrected Student Aid Report with the new EFC you will be sent an award letter via email notifying you of your aid eligibility. This notification will be sent within two weeks. The award letter will also be posted at my.newpaltz.edu. Information on your application status, the status of verification requirements, and eligibility can also be found at my.newpaltz.edu.
DEADLINES FOR SUBMITTING DOCUMENTS
All requested information must be submitted within 60 days from the last request for information. Failure to submit information in a timely fashion may result in the application being filed as inactive with no further consideration and no federal aid being processed. A one-time request for a 30-day extension may be granted due to extenuating circumstances and must be sent in writing to Student Financial Services at SUNY New Paltz.
Q) How long will it take for an IRS tax return transcript to be received in the mail?
A) If successfully validated, tax filers can expect to receive a paper IRS Tax Return Transcript at the address included in their online or telephone request, within 5 to 10 days from the time the request was successfully transmitted to the IRS. For those using a paper request form (IRS Form 4506T-EZ), tax filers can expect to receive their transcript within 5 to 10 days from the time the IRS receives and processes their signed request.
If you need personal tax help in person you may also be able to visit your local IRS office. Need help locating your local office? Local IRS Taxpayer Assistance Center Contact Information for Face-to-face Tax Help.
Q) What can I do if I am a tax filer who needs help determining my correct tax filing status?
A) The IRS has an excellent online tool to help taxpayers determine their correct filing status. It may be found here: What is my filing status?
Q) What can I do if I am a non-tax filer in 2021 and I requested the 2021 IRS Confirmation of IRS Non-Filing form a long time ago but have had no success receiving a response from the IRS?
A) If you have not received a response from the IRS after several weeks you can submit the 2023-2024 Statement of Non-Filing to our office.