The Tax Transcript Decoder© is a visual guide to assist financial aid administrators with quickly identifying the correct transcript line items needed to complete the verification
process. This tool contains a color-coded sample tax return and corresponding tax return transcript. The decoder also includes a sample Form W-2 cross-referenced with a W-2 Wage and Income Statement. Show
By Catherine Mueller January 19, 2022 The job of financial aid professionals got just a little easier this week when the Department of Education released the 2022-2023 FAFSA Verification-IRS Tax Return Transcript Matrix. In a January 18 Electronic Announcement, the Department of Education announced the release of the matrix, which financial aid professionals can use for 2022-2023 verification of IRS tax return information included on the Free Application for Federal Student Aid (FAFSA) application. According to the Announcement, this matrix may help financial aid administrators map 2020 IRS Tax Return Transcript information to FAFSA/ISIR data. Also in the Electronic Announcement, the Department reminds financial aid professionals to watch for the following in the 2022-23 verification cycle:
Also in the Announcement, the Department said "Under provisions of the Higher Education Act (HEA), taxes and credits related to the Affordable Care Act (ACA) are not to be included in the amount of U.S. Taxes Paid that are used in the calculation of a student's expected family contribution (EFC)." Posted Date January 18, 2022 Electronic Announcement ID VERIF-22-01 Subject 2022-2023 FAFSA Verification-Internal Revenue Service (IRS) Tax Return Transcript Matrix Attached to this Electronic Announcement is the 2022-2023 FAFSA Verification-IRS Tax Return Transcript Matrix that institutions can use for 2022-2023 verification of IRS tax return information included on the Free Application for Federal Student Aid (FAFSA) application. Since the IRS Tax Return Transcript does not have line or item numbers and uses wording that may be different from what is used on the FAFSA, this matrix may help financial aid administrators map 2020 IRS Tax Return Transcript information to FAFSA/ISIR data. The first column of the matrix lists the six 2021-2022 FAFSA information items that, consistent with the September 1, 2021 Federal Register notice, may need to be verified for a student or parent who indicated that they did or will file a 2020 IRS tax return. The second column displays the student and parent FAFSA question number for each item. The third column displays the student and parent ISIR item number. ISIR Field numbers are from the 2022-2023 Electronic Data Exchange (EDE) Technical Reference under the ISIR Record Description/Data Dictionary. The fourth column of the matrix is the item name as displayed on the IRS Tax Return Transcript. Note that for some items the transcript may display two or three values for an item. If only one value is displayed on the transcript, that value must be used for verification. If more than one value is displayed on the transcript, the value associated with the item name that includes the words “Per Computer” must be used for verification. The “Per Computer” line should be used for verification even if it is different than what was reported by the tax filer. The last column shows the corresponding line item numbers from the 2020 IRS 1040 tax return. Also of significance to the 2022-2023 award year are two important considerations:
Under provisions of the Higher Education Act (HEA), taxes and credits related to the Affordable Care Act (ACA) are not to be included in the amount of U.S. Taxes Paid that are used in the calculation of a student's expected family contribution (EFC). What tax form do I use for 2022 2023?The 2022–2023 FAFSA Verification-IRS Tax Return Transcript Matrix is applicable only for U.S. IRS tax return filers (IRS Form 1040, and applicable Schedules) and includes only the tax return items required by the Department to be verified for 2022–2023.
What is required for v4 verification?A copy of the unexpired valid government-issued photo identification (ID) that is acknowledged in the notary statement below, or that is presented to a notary, such as, but not limited to, a driver's license, other state-issued ID, or passport. Statement of Educational Purpose provided, which must be notarized.
What is the processing date on IRS account transcript 2022?Therefore, it will look something like 20220602. The first four digits indicates the tax processing year, so this would be 2022. The fifth and sixth digits are the week of the year, so in this example the '06' would mean it is the sixth calendar week of the year.
What does V1 verification mean?Students who are selected for verification will be placed in one of the following groups to determine which FAFSA information must be verified. V1—Standard Verification Group. Students in this group must verify the following if they are tax filers: Adjusted gross income. U.S. income tax paid.
|